On Friday 29 May 2020, the Chancellor announced an extension to the scheme, with some significant changes. Most importantly a deadline has been imposed and the scheme will close to new entrants from 30 June. From this point onward, employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June.
This means that the final date by which an employer can furlough an employee for the first time will be the 10 June, in order for the current three-week furlough period to be completed by 30 June.
Employers will have until 31st July to make any claims in respect of the period to 30 June.
From 1 July the scheme will only be available to employers that have previously used the scheme in respect of employees they have previously furloughed. The number of employees that can be claimed by an employer for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the current CJRS.
Flexible Furloughing from 1 July 2020
From 1 July, employees that have previously been furloughed for any amount of time and any shift pattern can be brought back to work by employers, while still being able to claim the CJRS grant for their normal hours that they have not worked.
Employers will be able to agree on any new working arrangements with previously furloughed employees.
Employers will need to report and claim for a minimum period of a week when claiming the CJRS grant for furloughed hours,
Tapered Grants from 1 August 2020
From August 2020, the level of the grant will be slowly tapered to reflect that people will be returning to work.
In June and July, the Government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee doesn’t work. For any hours an employee works, employers will have to pay these.
In August, the Government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work.
In September, the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500, will be paid by employers.
Finally, in October, the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500, will be paid by employers. The cap will be proportional to the hours that have not been worked.
Further information on these changes, together with a link to fact sheets can be found here. For further information, fill out the contact form below and a member of our team will be in touch.
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