Changes to the Coronavirus Job Retention Scheme (CJRS)

From 1 July, employers can bring furloughed employees back to work for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked. From this date, only employees that you have successfully claimed a previous grant for will be eligible for more grants under the scheme.

This means they must have previously been furloughed for at least three consecutive weeks taking place any time between 1 March and 30 June 2020. For the minimum three consecutive week period to be completed by 30 June, the last day an employee could have started furlough for the first time was 10 June. This may differ if you have an employee returning from statutory parental leave.

Where a previously furloughed employee starts a new furlough period before 1 July this furlough period must be for a minimum of three consecutive weeks. This is the case regardless of whether the three consecutive week minimum period ends before or after 1 July.

Example:

A previously furloughed employee can start a new furlough period on 22 June which would have to continue for at least three consecutive weeks ending on or after 12 July. After this the employee can then be flexibly furloughed for any period. However, after 1 July, employers cannot make claims that cross calendar months, so the employer will need to make a separate claim for the period up to 30 June.

Although flexible furlough agreements can last any amount of time, unless otherwise specified the period that you claim for must be for a minimum claim period of 7 calendar days.

There is no change to the amount that an employer can claim through the CJRS for July

Breakdown of Government and Employer contributions

July

Employee receives 80% of wages up to £2,500 per month

80% of wage costs can be claimed via CJRS (up to £2,500)

Employers NI contribution and pension payable by the Government

August changes

Employee receives 80% of wages up to £2,500 per month

80% of wage costs can be claimed via CJRS (up to £2,500)

Change from July: Employers NI contribution and pension payable by the employer

September changes

Employee receives 80% of wages up to £2,500 per month

Change from August: 70% of wage costs can be claimed via CJRS (up to £2,187.50)

Change from August: 10% of wage costs paid by employer (up to 312.50)*

Employers NI contribution and pension payable by the employer

October changes

Employee receives 80% of wages up to £2,500 per month

Change from September: 60% of wage costs can be claimed via CJRS (up to £1,875)

Change from September: 20% of wage costs paid by employer up to £625*

Employers NI contribution and pension payable by the employer

 
* This doesn’t include the optional 20% top-up that some employers will pay to staff to ensure they receive 100% of their pay/salary

A new written agreement

If you flexibly furlough employees, you’ll need to agree this with the employee (or reach collective agreement with a trade union) and keep a new written agreement that confirms the new furlough arrangement. You’ll need to:

  • make sure that the agreement is consistent with employment, equality and discrimination laws
  • keep a written record of the agreement for five years
  • keep records of how many hours your employees work and the number of hours they are furloughed (i.e. not working).

Remember:

During hours which you record your employee as being on furlough, you cannot ask your employee to do any work for you that:

  • makes money for your organisation or any organisation linked or associated with your organisation
  • provides services for your organisation or any organisation linked or associated with your organisation.

Your employee can:

  • take part in training
  • volunteer for another employer or organisation
  • work for another employer (if contractually allowed)

Coronavirus Job Retention Scheme (CJRS): A step by step guide for employers

This step by step guide from the government will take you through five sections:

Step 1: Essential information
Step 2: Before you make your claim
Step 3: Calculating your claim
Step 4: Making a claim
Step 5: What to do next

 

Download

 

How can Price Bailey help?

You can make a claim now via the Gov.uk website here:

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

You’ll need the Government Gateway user ID and password you got when you registered for PAYE online.

For our payroll clients

Where we hold a 64-8 we can set them up on the portal and submit grant claims, subject to the client approving the claim before submission. Please speak to your PB contact for more information.

Where do not currently hold a 64-8, unfortunately we cannot do this, due to GDPR restrictions as per the advice by HMRC. However we can support you in preparing the claim for you to then file yourself.

For non-payroll clients

We also cannot do this due to GDPR restrictions. However, However we can support you in preparing the claim for you to file yourself and can offer advice on the Job Retention Scheme and other government support packages.

For more information on furloughing staff, please reach out to your Price Bailey contact, Joanna Smye from our Employment Law team.

 

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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