Update to the Job Retention (Furlough) Scheme
Guidance was updated on 12th June 2020, with respect to the changes coming to the Job Retention (Grant) Scheme.
From 1st July employers who have previously “furloughed” employees – prior to 30th June 2020 can “flexibly furlough” employees.
This means that employees can work for the business for any pattern of hours / days per week and be “furloughed” for the hours / days not worked up to their normal regular hours worked prior to 28th February 2020.
The employer can then claim the Corona Virus Job Retention Scheme (CJRS) Grant for the “non-working” time. This claim can be made once the non-working time accumulates to at least one day.
Full guidance is published at https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme
Changes to CJRS Grant receivable
The amount of the grant is also changing – with employers being responsible for a percentage of the furloughed wages.
Employers will still need to pay 80% of normal wages to employees for any time spent on furlough, however the grant receivable will reduce.
In August 2020 the employer will no longer receive a grant to cover the Employer National Insurance Contributions due for each employee. However if the business is already in receipt of the Employer NIC Allowance – up to £4000 per year this will make no difference to the grant received.
In September 2020, the CJRS grant due will reduce to 70% of pay
In October 2020, the CJRS grant will reduce to 60% of pay
Full guidance in respect of the changes to the grant are published at https://www.gov.uk/government/publications/changes-to-the-coronavirus-job-retention-scheme/changes-to-the-coronavirus-job-retention-scheme