The government have announced that the Coronavirus Job Retention Scheme (CJRS) will be extended and will run through until 2 December 2020. The Job Support Scheme Open (JSSO) and Job Support Scheme Closed (JSSC) will be postponed and will start on 2 December 2020 when the CJRS extension ends.
The government will fund up to 80% of a furloughed employee’s current salary for hours not worked up to a maximum of £2,500 per month. Employers are only being asked to cover NICs and pension contributions for the hours the employee does not work.
Flexible furlough is still available if employers want to take employees back on a part-time basis, employers should continue to pay the employee for hours worked in the usual way.
Employers can top up employee wages above the CJRS grant at their own expense if they wish.
To be eligible, employers must have a UK bank account and a UK PAYE scheme. However, this time around, employers do not need to have previously used the CJRS.
Employees will be eligible if they were on the employer’s payroll as of 23:59 on 30 October 2020 (and a RTI submission must have been made by that time too). Under the CJRS extended scheme, employees must be furloughed for a minimum of 7 consecutive days.
For those employees who are not currently on furlough, they will need to be given a written agreement recording the arrangement. For those currently on furlough, an extension to any current agreement will be required.