Another week and another update !!! We appreciate this information keeps on coming but we are doing are best to filter it so you only get the important bits landing in your inbox. If you don't have any Furloughed employees then you don't need to read this :-)
Following on from our previous newsletter on 2nd June 2020 the Government has announced some further updates to the Coronavirus Job Retention Scheme (CJRS). The guidance was updated on the 12th June to include details of how the scheme will change as of 1st July 2020.
The CJRS has been effectively split into two distinct parts:
CJRS Part 1 - 1st March 2020 to 30th June 2020
CJRS Part 2 – 1st July 2020 to 31st October 2020
Each part of the scheme has different rules applying to it as follows:
CVJS – Part 1
- Employees must be fully furloughed. No work allowed.
- Minimum furlough period for each employee is 21 days.
- No new employee can be admitted to the scheme after 30 June.
- 31 July is final date for submitting claims under for part 1 of the scheme (up to 30th June 2020)
CVJS - Part 2
From 1 July the scheme is only available to employers that have used CJRS Part 1 and only for employees they have previously furloughed.
- Employees can be flexibly furloughed, enabling part-time working.
- No minimum furlough period.
- Furlough claims become more specific and must contain details of usual hours (based on calendar days) and usual hours worked. Hours furloughed will be the difference.
- Each claim made by employer must be for a week or more.
No claim period can extend across a calendar month end.
Its important for employers to note the above changes. Particularly the element with regards the claims requiring more specific information on employee hours. If you intend to bring back employees on a part time basis 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. We haven’t seen any information on how the Government claim website will change but our guess is entries relating to the hours worked by employees will be required along with their normal hours.
Keeping appropriate records of agreements and hours worked will be even more essential during CVJS - Part 2
Employers can agree any working arrangements with previously furloughed employees from 1 July onwards. Don’t forget though employment law requirements must continue to be observed.
With regards making the claim, here too is another change in that claims cannot be submitted across two calendar months. Although not confirmed yet, we understand there is to be a new time limit for claims. Any claim for a period in a calendar month must be submitted before the end of the following calendar month.
One exception to the scheme closing for new applicants, is claims for employees who are now returning to work after a period of parental leave (maternity / paternity), will be allowed. Providing the employer has previously furloughed employees they will, from the 1st July, be allowed to be furloughed.
There have been no changes to the date timelines or changes to employer contributions that were previously announced. These were covered in detail in our newsletter on the 2nd June. In summary
30th June – CJRS closes to new applicants (note to qualify employees will have need to have been furloughed on or before 10th June 2020).
1st July – Employers can take back workers part time.
1st – 31st August Employers to pay ER NICs and Pension contributions
1st – 30th September – Government to pay 70%, Employers to pay 10% and ER NICs and Pension contributions
1st – 31st October – Government to pay 60%, Employers to pay 20% and ER NICs and Pension contributions
As always, we will endeavour to keep you up to date on any further changes. Until the next time stay safe.