Furlough Scheme Update
With the new lockdown coming into force on 5 November 2020, the Coronavirus Job Retention Scheme (CRJS) is being extended. As we previously reported, this was due to end on 31 October 2020 and last month the Chancellor had no plans to extend the scheme, with the new Jobs Support Scheme due to run instead for 6 months from 1 November 2020.
The CRJS will be extended for the duration of the national restrictions providing up to 80% of current salary (up to a maximum of £2,500), as before. The Job Support Scheme which is now postponed until the CRJS ends, had two parts - JSS Open and JSS Closed, the latter being for businesses required to close under lockdown regulations.
Points to note:
● Employers do not have to have previously taken advantage of the original furlough scheme to qualify for the extended furlough scheme
● Employees must have been on their employer’s PAYE payroll before midnight on 30 October 2020 (meaning that provided the employer submitted real-time information to HMRC, in relation to that employee, on or before 30 October 2020 then new starters will be included)
● Employees on any type of contract are included, zero-hours and casual contracts
● It is not an all or nothing situation. Employees can work some of their normal hours and be claimed for in respect of their unworked hours.
● It is yet to be announced whether employers can or are able to reinstate those employees it had to make redundant in October so that those employees can benefit from the extended furlough scheme. This was the case in the March version of the scheme.
● This new situation may mean that you have employees who were planning a return to work and are now once again furloughed. In these circumstances, timely communication and managing expectations are key.
Posted on 11/05/2020 by Ortolan
