The Government has announced some important changes to the Coronavirus Job Retention Scheme (CJRS) which all employers who have staff still on furlough or who are still contemplating putting staff on furlough, need to take note of
10th June 2020
The CJRS will close to new entrants from 30th June. From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30th June. This means that the final date that you can furlough an employee for the first time will be 10th June, employers will have until 31st July to make any claims in respect of the period to 30th June.
1st July 2020
Employers will have the flexibility to bring furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August.
Employers can decide the hours and shift patterns that employees will work on their return and will be responsible for paying their wages in full while working. This means that employees can work as much or as little as the business needs, with no minimum time that you can furlough staff for.
If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
Changes to employer furlough contributions
From August, the government grant provided through the job retention scheme will be slowly tapered. It is important employers take note of these changes……..
1st June to 31st July 2020
The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee does not work – employers will have to pay employees for the hours they work
1st – 31st August 2020
The government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions
1st – 30th September 2020
The government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
1st – 31st October 2020
The government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500
The cap on the furlough grant will be proportional to the hours not worked.
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
As always, it’s important for employers to keep an open dialogue with their employees and keep appropriate records of agreements and hours worked etc