Earlier today the government announced the Coronavirus Job Retention Scheme (CJRS) has been extended until 31st March 2021. A new policy paper outlining the extension has been issued; further details will be published on 10th November 2020.
Employees will receive 80% of their current salaries for the hours not worked up to a maximum of £2500. The cost for the employers retaining workers will be reduced compared to CJRS which ended on 31st of October 2020.
The Extended CJRS (furlough scheme) is more generous than it was in October. The level of grant mirror's levels available in August 2020 where the government paid 80% of wages up to a cap of £2500.
PAYE Payroll
All employers with a UK bank account and UK PAYE are eligible for this scheme, fully funded public organisations are not expected to use this scheme. The extended CJRS is also applicable to employers or employees who have not used CJRS previously; however they must fulfil the qualifying requirements. Employees must be on at the PAYE payroll by 23:59 on 30th of October 2020 to qualify. Therefore, the real time information (RTI) submission to HMRC must have been made on or before the 30th of October 2020.
Employers must continue to make the National Insurance and employer pension contributions during the furlough period.
Any type of employment contract is applicable for this scheme.
Employers can agree working arrangements with the employees as previously in the CJRS. Flexible furlough arrangement may continue, this is where employees work some hours. Alternatively full furlough may apply.
Employees who are shielding or need to stay at home with someone who is shielding can be furloughed. They do not have to be placed on furlough; they can continue to work.
Any employees who were on the payroll on 23rd September 2020 and were made redundancy or stopped working for the employer after this date can be reemployed and claimed for. Please note the usual employment rights would apply and therefore employers should consider this option carefully.
The government will review the CJRS arrangement in January; employers may be asked to contribute more thereafter.
The Job Support Scheme and the Job Retention Bonus have been out on hold until further notice.
We will update you further as further information is published; in the meantime, please call the advice line on the 01455852028.
