Coronavirus Job Retention Scheme (CJRS): Extension and part-time working

On 29th May 2020, Chancellor Rishi Sunak announced changes to the Coronavirus Job Retention Scheme (CJRS) starting from the 1st July 2020. Detailed guidance is yet to be issued at the time of writing, however, what has been announced has been outlined below:-

From 1st July 2020

  • From this date forward employers can bring back previously furloughed employees ‘part time’ and still be able to claim the CJRS grant for the employees’ normal hours not worked. Employers will need to report and claim from a minimum period of a week. Any working hours arrangement agreed with an employee must cover at least one week.
  • The CJRS will be closed to new entrants from 30th June. Employers will only be able to claim for employees that have been furloughed for a full 3 week period prior to 30th June 2020, which means that the final date an employer can furlough an employee is 10th June 2020. Employers will have until 31?? July to make any claims in respect of the period to 30?? June.
  • Further guidance on how the claim is to be calculated going forward is due to be issued on 12th June 2020.

From 1st August 2020

  • Employers will still be able to claim 80% (up to a maximum of £2,500 per month) of furloughed employees’ wages under the CJRS for the hours the employee does not work, however, national insurance contributions and mandatory pension contributions must now be paid by the employer.

From 1st September 2020

  • The grant available under the CJRS will reduce to 70% of the furloughed employees’ wages (up to a maximum of £2,187.50 per month) for the hours the employee does not work. Furloughed employees will still be entitled to receive 80% (up to a maximum of £2,500 per month) but employers will now need to contribute 10% of this along with the payment of the national insurance contributions and mandatory pension contributions arising.

From 1st October 2020

  • The grant available under the CJRS will reduce to 60% of the furloughed employees’ wages (up to a maximum of £1,875 per month) for the hours the employee does not work. Furloughed employees will still be entitled to receive 80% (up to a maximum of £2,500 per month) but employers will now need to contribute 20% of this along with the payment of the national insurance contributions and mandatory pension contributions arising.
  • The CJRS will close from 31st October 2020.

Should you have any questions regarding this announcement, please do not hesitate to speak to your contact at Barnes Roffe LLP.

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