COVID-19 – Update 1 June – Coronavirus Job Retention Scheme (CJRS)

With more details being announced about the extension to the CJRS, our experts have outlined the key details below.

Flexible Furloughing

As of 1 July, employers will be able to bring back furloughed employees on a part-time basis if need be. In these circumstances the government will continue to pay 80% of the employees’ wages for the hours they do not work up until the end of August, with the employer being responsible for paying their wages in full while working (i.e. pre-furlough rate of pay).

With no minimum time that you have to furlough staff for, employees can work as much or as little as your business needs. Any working hour agreements must cover at least one week and be confirmed to the employee in writing.

A minimum of one week must be reported and claimed for, but you can opt to make claims for longer periods, for example on a monthly or two weekly cycle. Employers will also be required to submit data on the employees contracted hours expected to normally work for that claim period and actual hours worked.

Where employees are unable to return to work, or there is no workload, they can remain on the scheme and the employer can continue to claim a grant for their hours under the existing rules.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

Employer contributions

From August, the grants provided will slowly be reduced as outlined below.

• June/July: The government will continue to pay the grant under the existing rules. Employers will have to pay employees for the hours they work.
• August: The government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay Employer’s NICs and Employer’s minimum pension contributions.
• September: The government will only pay 70% of wages up to a cap of £2,187.50. Employers will pay Employer’s NICs, Employer’s minimum pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.
• October: The government will only pay 60% of wages up to a cap of £1,875. Employers will pay Employer’s NICs, Employer’s minimum pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.

Please note, the cap on the grant will be proportional to the hours not worked.

For smaller employers, some or all of your employer NIC bills will be covered by the Employment Allowance.

Important dates

The scheme will close to new entrants from the 30 June and you will only be able to furlough employees who have been furloughed for a full three-week period prior to this date. Therefore, the final date you can furlough an employee for the first time is 10 June.

Employers will have until 31‌‌ July to make any claims in respect of the period to 30‌‌ June.

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A note about scams

Stay vigilant about scams, which may mimic government messages as a way of appearing authentic and unthreatening. Search ‘scams’ on GOV.UK for information on how to recognise genuine HMRC contact. You can also forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk and texts to 60599.’

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