The Coronavirus Job Retention Scheme (‘CJRS’) has been extended to 31 March 2021. A summary of key points arising out of the extension to the CJRS is set out below:
- The government will pay 80% of wages for hours not worked up to £2,500 per month. The scheme will be reviewed in January 2021 to decide whether employers will be required to make a contribution thereafter.
- Employers do not need to have previously claimed for an employee before 30 October 2020 in order to claim for periods from 1 November 2020.
- The extended scheme is open for employees who were employed on 30 October 2020, as well as employees who were made redundant or stopped working on or after 23 September 2020 if they are then rehired.
- Employers can furlough employees for any amount of time and any work pattern, whilst still being able to claim the grant for the hours not worked.
- Employers can continue to claim for periods ending on 31 October 2020 until the deadline on 30 November 2020.
- The Coronavirus Job Retention Bonus has been withdrawn.
- It is now a condition of making a claim that the employer accepts that HM Revenue & Customs will publish information about CJRS claims on the internet (including the name of the employer and a reasonable indication of the amount claimed).
- Furlough agreements must be in place before the start of the relevant claim period.
- Employees who have not previously been furloughed will have a different pay/hours reference period. The pay is based on 80% of wages payable in the last pay period ending on or before 30 October 2020 (for those on fixed wages), or 80% of the average payable between the start date of their employment or 6 April 2020 (whichever is later) and the day before their CJRS extension furlough period begins (for those on variable wages).
- Employees can be furloughed if they are shielding in line with public health guidance (or need to stay at home with someone who is shielding). This does not mean that they have to be furloughed.
- Last, but certainly not least, claims may not be made for any day that an employee is serving notice (both statutory and contractual periods) between 1 December 2020 and 31 January 2021.
For more information, please contact Tom Evans (Head of Employment & HR) or Elizabeth Judson (Senior Associate).
