Update - Changes to the Job Retention Scheme

6th June 2020

The Coronavirus Job Retention Scheme (CJRS) is soon to include a more flexible approach.  From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.  This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

The scheme’s key dates, reflecting these changes, are summarised as follows:

·       June and July: 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.

·       August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions.

·       September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

·       October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

Full guidance can be found on the government website.

Further details on the flexible furlough scheme are expected to be released on 12 June.

If you would like to discuss the changes as they affect you and your staff, please contact Michael Greene or your usual Whittles contact