New Job Retention Scheme (July 2020)
The Coronavirus Job Retention Scheme (CJRS) will change from 1 July until the grant closes on 31 October 2020.
From 30 June 2020, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June. The cut-off date for furloughing under the old scheme was 10 June.
Elements of the new scheme
- Employers can bring previously furloughed employees back to work part-time from 1 July (known as flexible furloughing). You can decide the hours and shift patterns they work to suit the needs of your business
- Employer pay wages for the time they’re in work and can apply for a job retention scheme grant to cover any of their usual hours they are still furloughed for.
- You can still keep employees on full furlough if you need to.
- Flexible furloughing continues until the scheme closes.
- The first time you will be able to make claims for days in July will be 1 July 2020, you cannot claim for periods in July before this point.
- The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any single previous claim under the current scheme. So, for example, if an employer had made three claims prior to 1 July, for 12, 24 and 20 employees, the maximum number they could claim for in any claim period following 1 July would be 24, as this is the largest previous claim
Levels of grant is also changing
From 1 August 2020, the level of grant contributed by the government will be reduced each month until the scheme ends in October.
- For August, the government will pay 80 per cent of wages up to a cap of £2,500 for the hours an employee is on furlough.
- Employers now pay National Insurance Contributions (NICs) and pension contributions for the hours the employee is on furlough
- For September, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee is on furlough.
- Employers now top up 10 per cent of an employee’s wages (to ensure they receive 80 per cent of their wages up to a cap of £2,500) for the time they are furloughed.
- For October, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee is on furlough.
- Employers now top up 20 per cent of an employee’s wages (to ensure they receive 80 per cent of their wages up to a cap of £2,500) for the time they are furloughed.
Working From Home
Employers who have implemented flexible working arrangements should allow employees who are not sick to continue working from home and they should be paid accordingly.
The general government guidance is that those staff who can work from home should continue to do so.
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