I’ve lost count how many times the Government has changed the guidance on the Coronavirus Job Retention Scheme (CJRS), and therefore I wouldn’t be surprised if you told me that you hadn’t been able to keep up or that you weren’t clear on what the position is now.

One of the most significant changes we’ve seen is the introduction of ‘flexible furlough’ from 1 July 2020 for those employees who were on furlough on or before 10 June 2020 for at least three weeks (save for some limited exceptions including those that were on statutory family leave).

You may already be aware of the changes on the horizon from 1 August 2020, and if so, this hopefully will serve as a timely reminder. The changes from 1 August 2020 as are as follows:

  • From 1 August 2020 employers will be required to pay NICs and employer pension contributions on furlough pay;
  • From 1 September 2020, in addition to NICS and pension contributions, employers will be required to pay 10% of the employee’s pay, capped at £312.50. Employers will be able to claim 70% of the employee’s pay, capped at £2,187.50 from the CRJS;
  • From 1 October 2020, the percentage that employers need to pay will increase to 20% of the employee’s pay, capped at £625. The Government will pay 60% of the employee’s pay capped at £1,875.

The scheme ends at the end of October 2020; however, the Government has announced a Job Retention bonus. Under the scheme, employers will be paid £1,000 for each employee they bring back from furlough and continuously employ through to the end of January 2021. Businesses must pay employees at least £520 on average each month from November 2020 to the end of January 2021 to be eligible for the bonus.

For some, the support may not be enough to avoid having to make redundancies before January 2021. If you find that you need to consider redundancies, you may find my blog, “Redundancies: Where to begin” helpful, which you can find here.

As a word of caution, if you do find yourself having to consider redundancies be mindful that you cannot claim the Job Retention bonus grant for an employee who is serving statutory or contractual notice for redundancy. You can, however, continue to claim for a furloughed employee under the CJRS that is serving notice.

If you need any advice on the CJRS or the Job Retention bonus, please do get in touch – I’d be happy to help.

This blog provides general guidance only. Expert advice should always be sought in relation to particular circumstances.

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