Services
People
News and Events
Other
Blogs

The Extended Coronavirus Job Retention Scheme

View profile for Ayesha Casely-Hayford
  • Posted
  • Author

With the UK going into a second lockdown, here is a brief note on the changes to the support being provided by the UK Government in the field of employment.

PLEASE NOTE: precise terms of the extension to the UK Government’s Coronavirus Job Retention Scheme is still awaited and the information below is therefore subject to change.

What’s the latest?

The Coronavirus Job Retention Scheme (CJRS) has been extended. Currently, the Government says that it will be extended until December 2020.

The CJRS was due to close on 31 October and be replaced by the Job Support Scheme from 1 November 2020.

 What about the Job Support Scheme?

The Job Support Scheme (JSS) has been delayed. It will be delayed until the newly extended CJRS has closed. Here is our note on the published information on the Job Support Scheme, as it was intended.

What are the main points of the extended CJRS?

  • There will be funding from the UK Government for employers to pay their employees 80% of their wages for the hours they do not work, up to £2,500 per month.
  • Employers may top up to 100% of an employee’s wages if they wish to. It may also be a contractual requirement to do so and legal advice should be sought if unsure.
  • Employers must pay employees in full for the hours they do work.
  • The ability to flexibly furlough employees will continue. Therefore, employees will be able to work part time.
  • There is still no right to be furloughed, the decision is the employers. Please see our note on matters to be mindful of when selecting employees for furlough.
  • All employers with a UK bank account and PAYE scheme will be eligible under the extended CJRS, you do not have to have used the CJRS previously.
  • Employees will be eligible to be furloughed under the extended scheme if they were on the employer’s payroll on 30 October 2020 and the employer has made a real time information submission to the HMRC in respect of the employee on or before that date.
  • As before, employers are responsible for paying the employer national insurance contributions and auto-enrolment pension contributions.

Do get in touch with us for any specific queries and we shall be happy to help.