5th November 2020
As Boris Johnson announced a new national lockdown on the 31st October, so to came the announcement that the Coronavirus Job Retention Scheme (CJRS) (also known as the ‘furlough scheme’) would continue.
The Coronavirus Job Retention Scheme (furlough) was due to come to an end on the 31st October and be replaced by the Job Support Scheme (JSS) on the 1st November. The Job Suport Scheme will now be postponed, with the Coronavirus Job Retention Scheme (furlough scheme) continuing until April 30th 2021, although this is subject to a Government review in January 2021.
Under the extension of the CJRS, it will mirror levels available under the CJRS in August in that the Government will pay 80% of wages for hours not worked up to a maximum of £2,500. Employers will cover National Insurance contributions and pension contributions.
Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time.
Who is eligible for the furlough scheme extension?
To be eligible under the extension, employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. Employees can be on any type of contract including apprentices, full time, part time and ‘zero hours’ contracts.
It is not necessary for the employer or employee to have previously used the CJRS in order to access it under the extended period.
When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period. For worked hours, employees will be paid by their employer in accordance with their employment contract and employers will be responsible for paying the tax and National Insurance contributions due on those amounts.
What support is being provided in the furlough scheme extension?
For hours not worked by the employee, the Government will pay 80% of wages up to a cap of £2,500. The grant must be paid to the employee in full.
As with the existing furlough scheme, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
The Government will confirm when claims can first be made in respect of employee wage costs during November, but there will be no gap in eligibility for support between the previously announced end-date of Coronavirus Job Retention Scheme and this extension.
Employment Solicitors Nottingham – Get in touch
The law surrounding the job retention scheme and how this applies to you as an individual or your business can be complex and confusing. Our employment law team is on hand to help with any enquiries you may have. If you have been made redundant whilst on furlough and want to know if you can make a claim against your employer contact our employment solicitor Natalie Abbott on n.abbott@rotherabray.co.uk or 0115 910 6244.
