The Coronavirus Job Retention Scheme (CJRS) has protected more than 8 million jobs to date, with around 1 million firms benefiting from the scheme.
The CJRS has been extended until the end of October, with several changes coming into effect from July. These include the introduction of part time, or flexible, furloughing, and a requirement for employers to make a contribution alongside the taxpayer in paying their employees. Throughout, the level of support available to employees will remain at 80% of their normal wage.
Flexible Furloughing
Employees may return to work for amount of time and any shift pattern from July 1st - with the proportion of hours they do not work still covered by the furlough grant. Employers must pay their employees for the hours they are working, subject to their employment contract, and will be required to report data on hours worked by an employee and the usual hours an employee would be expected to work.
The CJRS will be closed to new entrants on 30 June. This means employees furloughed for the first time must be placed on furlough on or before Wednesday 10 June in order to access flexible furlough, in order for the three week minimum period to have been completed by 30 June. All employers planning to claim a grant from 1 July must have completed their first claim (for the period ending 30 June) by Friday 31 July.
Employer Contribution
In June and July, nothing will change for employers and the government will continue to pay 80 per cent of people’s salaries.
From August, the level of the grant will be slowly reduced and employers will be required to top up the government payment to ensure employees receive 80 per cent of their normal pay, up to a monthly cap of £2,500, throughout.
- In August, employers will be asked to pay just Employer NICs and pension contributions. The government will continue to pay 80 per cent of wages, up to a cap of £2,500.
- In September, employers will pay Employer NICs and pension contributions, and 10 per cent of wages to make up 80 per cent total, up to a cap of £2,500. The government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee does not work.
- In October, employers will pay Employer NICs and pension contributions, and 20 per cent of wages to make up 80 per cent total, up to a cap of £2,500. The government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee does not work.
Detailed guidance on these changes will be published on Friday 12 June. An explanatory video is available via the attached YouTube link.