As COVID-19 continues to run rampant, the U.K. is facing a month-long lockdown until December 2nd. As a result, the Coronavirus Job Retention Scheme (“CJRS”) has been extended until the end of March 2021.
So, what do employers need to know about this updated guidance? Hear from Bryan Cave Leighton Paisner LLP below:
Key details of the government guidance
The updated guidance includes the following key details:
- During the period 1 November 2020 to 31 January 2021, the government furlough grant will pay 80% of wages for hours not worked up, capped at £2,500 per month. Employers will be liable for employer National Insurance contributions and employer pension contributions only. The government will review the terms of the scheme in January 2021 and may then require that employers make a contributions towards wages (as it did under the original scheme). This is likely to be dependent on the state of the economy and the general prevalence of the virus.
- The extended CJRS applies to employees who were employed as at 30 October 2020, as well as employees who were made redundant or stopped working on or after 23 September 2020, if they are then re-employed by their employer.
- Employers can make a claim under the extended furlough scheme in relation to employees who have not previously been furloughed and claimed for, and there is no cap on the number of employees that an employer can claim for under the extended scheme.
- The scheme is fully flexible – employers can furlough employees for any amount of time and any work pattern.
- Any claims under the initial CJRS in relation to furloughs up to 31 October 2020 can be claimed up to 30 November 2020.
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