COVID-19: Employment Bulletin – Coronavirus Job Retention Scheme – updated 29 May 2020
Information correct as at 29 May 2020
The Chancellor has confirmed the Coronavirus Job Retention Scheme (‘CJRS’) will end 31 October 2020. Key dates for employers to note are as follows:
- 12 June – further guidance of flexi-furlough to be issued by the government
- 30 June – furlough scheme closed to new entrants (10 June is the last date employees can be placed on furlough and get the necessary 3 weeks qualification period before 1 July 2020) to be able to use the flexi-furlough scheme from 1 July 2020
- 1 July – flexi-furlough comes into effect. Only available to employers who have used the scheme previously in respect of furloughed employees (see point above). Employers will be able to agree any working arrangements with previously furloughed employees, claiming the CJRS grant for normal hours not worked for a minimum period of a week at a time.
- Flexi-furlough arrangement must be agreed and confirmed in writing. Employers will pay in full for hours worked by employees at 100% and tax and NICs due on those amounts.
- From 1 July, claim periods will no longer be able to overlap calendar months, this is necessary to reflect the forthcoming changes.
- 31 July – final date by which an employer can claim CJRS in respect of 30 June 2020. 1 July is the date from which employers can make their first claim under the new scheme.
- 1 August – the CJRS subsidy will taper off with employers paying all NI and pension contributions (currently covered by the CJRS).
- 1 September – the CJRS will cover 70% of salaries to a cap of £2,190 with employers making up the shortfall up to 80% of wages for those hours not worked up to a cap of £2,500 and paying all NI and pension contributions
- 1 October – the CJRS will cover 60% of salaries to a cap of £1,875 with employers making up the shortfall up to 80% for those hours not worked up to a cap of £2,500 and paying all NI and pension contributions
Further guidance on flexible furloughing and how employers should calculate claims will be published by the Government on 12 June.
Find out more information on how the Coronavirus Job Retention Scheme is changing here: