Mogers Drewett: The extended Coronavirus Job Retention Scheme explained
Coronavirus Job Retention Scheme (CJRS) – better known as the furlough scheme –
has been extended until the end of March 2021. Full details of the rules
relating to the new scheme are set to be published on 10 November. Employment
Partner, Sean McDonough outlines the anticipated key points of the extended
scheme in his latest article.
will it work?
Employers across the UK can claim, whether their businesses are open or closed and do not need to have used the CJRS previously.
Under the terms of the extension, the government will pay 80% of wages, up to a £2,500 cap for hours not worked with employers paying employer NI and pension contributions until January 2021.
In January the government will review and decide whether economic circumstances are improving sufficiently to ask employers to contribute more.
Businesses have flexibility to bring furloughed employees back to work on a part time basis or furlough full-time.
Employees can be furloughed if they are shielding and are unable to work from home.
An updated furlough agreement needs to be in place and a copy kept for 5 years.
To be eligible employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020.
Employees that were on the payroll on 23 September 2020 who were either made redundant or left their employment after that date can be re-employed and claimed for.
Employers need to report and claim for a minimum period of 7 consecutive calendar days.
The grant must be paid to the employee in full with employers being able to choose to top up wages at their own expense.
Employees continue to accrue leave and are able to take leave during furlough. Employers must top up the grant to full pay for any holiday taken.
The launch of the Job Support Scheme has been postponed until the end of the CJRS.