Final Phase of ‘Furlough’ Scheme Announced…
The final phase of the Government’s Coronavirus Job Retention Scheme was announced recently. The below key dates will be of use to you if you have any staff on furlough, or are considering using the scheme (although you’ll need to be really quick!)
- 10 June 2020, this is the last date that someone can be furloughed who has not been furloughed before. If a business has not used the scheme before now, they need to make sure that they are aware of this deadline as this is the last opportunity to join the scheme.
- 30th June 2020 the CJRS closes to new applicants – this means that if a business has not used the CJRS before, and does not have an employee who has completed a FULL 3 week furlough period prior to 30th June, they will not be able to claim.
- From 1 July 2020, furloughed employees can be brought back to work on a part-time basis. For any hours they are working, the employer pays them full wage. For any hours they remain furloughed, the Government will pay 80% of their salary (up to £2,500). Employees can remain on full furlough as well, if appropriate.
- From 1 August 2020, the employer starts to pay National Insurance and Pension contributions for anyone furloughed.
- From 1 September 2020, the CJRS reduces to 70%, meaning that the employer is responsible for paying 10% of furlough pay, plus NIC and Pension contributions. Employer can claim a maximum of £2,190 for a fully furloughed employee, or the relevant proportion of that amount if the employee is back working part-time.
- From 1 October 2020, the CJRS reduces to 60%, meaning that the employer is responsible for paying 20% of furlough pay, plus NIC and Pension contributions. Employer can claim a maximum of £1,875 for a fully furloughed employee, or the relevant proportion of that amount if the employee is back working part-time.
- 31 October 2020, the CJRS scheme will close.
Please remember that you should provide a letter to anyone who is coming back from furlough to confirm that their normal terms and conditions will resume. If you are bringing someone back part time, the letter should detail what their hours will look like and any next steps. I can help with this if required.
In addition, please note that the record keeping requirements for the CJRS changed recently – any paperwork relating to claims for furlough pay now need to be kept for 6 years (previously 5 years).
Please get in touch if you would like any further information. The following sites are also useful: