COVID-19 Update – 2 November – CJRS being extended until December

The Government have announced that the Coronavirus Job Retention Scheme (CJRS) will continue and be extended until December for all UK businesses. Therefore, it is not closing on 31 October as was originally planned, and the Job Support Scheme will not go live from 1 November.

CJRS has been extended in its original flexible state. Employers will receive support from the Government, covering 80% of qualifying pay (up to a maximum of £2,500 per month).

Key points:

• Employers will have the flexibility to bring furloughed employees back to work on a part-time basis (like flexible furlough) or furlough them full-time.
• Neither the employer nor the employee needs to have previously used the CJRS.
• Eligible employees must have been on an employers payroll at 23:59 on 30 October 2020 / a RTI submission for that employee must have been made on or before 30th October 2020.
• The grant must be paid to the employee in full.
• Employers will pay employer NICs and pension contributions and should continue to pay the employee for hours worked in the normal way.
• As with the current CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.

The Open & Closed Job Support Schemes (JSS) are not going ahead on 1 November and have been delayed until at least December.

Employers should:

1. Review employee working arrangements – we can help forecast employee earnings and employer oncosts.
2. Communicate the changes taking place – this will be particularly important where JSS has already been communicated.
3. Update current agreements with employees – to ensure they are clear on their working obligations and pay levels.

We are still expecting further clarification over the next few hours/days on certain aspects of the resurrected scheme, but for now you can find out more here.

If you need any further support, please contact the payroll team on 01522 531341 or at payroll@wrightvigar.co.uk