Coronavirus Job Retention Scheme (CJRS): The Final Countdown28 Jul 2021 // Insights
Head of Employment Helen Crossland reminds employers that the furlough scheme is about to enter its last two months.
As notified in our update of 17 May 2021 here, the CJRS will, barring any last-minute extension or reprisal, end for good on 30 September 2021. From 1 August 2021 until the scheme closes, employers will be required to contribute more towards their furloughed employees’ wages while the Government’s contribution level tapers down as planned.
Employees can still be placed on flexible/part time furlough until the CJRS ends. Businesses can also continue to top up employees’ wages above the relevant cap for any hours not worked at their own expense.
In the event an employee is made redundant or given notice that their employment is to terminate while on furlough, any notice or holiday pay due should be paid at the employee’s full basic rate of pay. Any redundancy payment should also be calculated using the employee’s normal rate of pay, as opposed to their furloughed rate. Such termination payments cannot be claimed under the CJRS and must be borne in full by the employer.
The table below illustrates the Government contribution available for the final two months of the CJRS, the required employer contributions and the amount that an employee will receive per month, where furloughed 100% of the time.
Should you have any queries on the above or require any employment related advice, please contact Helen Crossland at firstname.lastname@example.org or on 020 7725 8034 or Fiona Mendel at email@example.com or on 020 7725 8033.
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