Further updates To the Coronavirus Job Retention Scheme

Alan Patient and Co are keeping you informed with all the hottest information. The latest updates set out on the 12 June include details on how the scheme will change from 1 July.

Key dates

The first time you will be able to make claims for days in July will be 1 July, you cannot claim for periods in July before this point.

31 July is the last day that you can submit claims for periods ending on or before 30 June.
The Coronavirus Job Retention Scheme will close on 31 October 2020.
From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.
From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed. The timetable for changes to the scheme is set out below.

About Flexible furlough,

From 1 July part-time working will be allowed under the scheme. HM Treasury has published a factsheet which gives more detail as to how flexible furloughing will be implemented. Employers will be able to bring back to work any employees who have previously been furloughed for any amount of time and any shift pattern. While the employer will still be able to claim under the CJRS for those employees’ normal hours not worked, it will have to pay in full for any hours worked and will be responsible for the tax and NI contributions on those payments.

When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week. Those making claims for longer periods such as those on monthly or two weekly cycles will be able to do so. In order to be eligible for the grant, employers will have to agree with their employees any new flexible furloughing arrangement and confirm that agreement in writing.

The timetable for changes to the CJRscheme is set out below.

Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:

There are no changes to grant levels in June.
For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time. Wage caps are proportional to the house not worked.