The government have announced that the Coronavirus Job Retention Scheme (CJRS) will remain open across the UK until 31 March 2021.
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.
Employers across the UK that have been severely affected by the Coronavirus pandemic can claim the CJRS, whether their businesses are open or closed. Employers do not need to have used the CJRS previously.
To claim CJRS for employees, they must have been on the employer’s PAYE payroll on or before midnight on 30 October 2020. The following employees can be furloughed:
Employees can be furloughed where they are unable to work because they:
Employees that were employed and on the payroll on 23 September 2020 who were made redundant or stopped working for their employer afterwards can be re-employed and claimed for. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC from 20 March 2020 to 23 September 2020, notifying a payment of earnings for those employees.
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.
The Job Retention Bonus (JRB) will be delayed and not paid until the CJRS has finished, further details are yet to be released. The purpose of the JRB was to encourage employers to keep people in work until the end of January. However, as the CJRS is now being extended to 31 March 2021, this no longer applies.
The launch of the Job Support Scheme has been postponed because of the extension of the CJRS.
For more information on the Coronavirus Job Retention Scheme, or any other HR queries, get in touch by visiting our website www.thshr.co.uk, call us on 01633246666 or email firstname.lastname@example.org