Extension to the Coronavirus Job Retention Scheme (CJRS)
To date the Coronavirus Job Retention Scheme has helped 1 million employers across the UK and covered 8.4 millions jobs.
The government announced in May that the scheme will be extended, with further details of this having been announced on 29 May.
Key features of the extension include the following;
Furloughed staff can work part time from 1 July. Working patters should be agreed on a weekly basis. When claims are submitted, details of the usual number of hours the employee would have been expected to work will need to be reported, as will the number of hours actually worked. The employees should be paid their usual hourly rate for the hours worked. The Coronavirus Job Retention Scheme (CJRS) grant will cover 80% of the employee’s pay for the usual number of hours that were not worked.
The scheme for July onwards will only be available to employers who have previously claimed the CJRS grant and in respect of employees who have been placed on furlough. It will no longer be available to newly furloughed staff.
Furthermore, in order to ensure an employee qualifies for future grant payments, they must have completed a qualifying 3 week period of furloughed leave by 30 June. As such, if employers are now contemplating placing employees on furlough for the first time they must do so by 10 June.
The scheme is then due to be tapered back. In August, employers will be required to cover the cost of employers NIC and pension payments. In September, the government will cover 70% of the wage costs, capped at £2,187.50. The employer must pay at least the other 10% (so the employee still gets at least 80% of their usual pay), together with the NIC and pension costs. The government will then pay 60% of the wages in October, capped at £1,875, with the employer required to pay at least 20% of the wage costs, plus the NIC and pension costs.
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