- How will the extension to the Coronavirus Job Retention Scheme impact your employees?
How will the extension to the Coronavirus Job Retention Scheme impact your employees?
How will the extension to the Coronavirus Job Retention Scheme impact your employees?16th November 2020 - Published by Kuits employment team
On 5 November 2020 the Chancellor, Rishi Sunak, announced that the Coronavirus Job Retention Scheme (CJRS) would be extended. This announcement was subsequently followed by the publication of a policy paper on 10 November setting out how the extended CJRS will work.
Here, the Kuits employment team set out the key points in the policy paper which differ to how the CJRS had been working until 31 October 2020:
- The extended CJRS will run until 31 March 2021, the current framework will be revised in January 2021.
- Employees do not need to have been furloughed before to be furloughed now.
Serving notice during furlough:
- For now, employers can continue claiming for a furloughed employee who is serving a statutory notice period.
- However, from 1 December 2020, an employer will not be able to furlough employees serving a contractual or statutory notice period.
- When calculating furlough pay, employers must use the employee’s normal pay, rather than any reduced pay, as the base for the calculation. Therefore, if your employees have been furloughed before and are going to continue to be furloughed then their normal wage must continue to be used to calculate their furlough pay.
- If you have made employee(s) redundant or they stopped working for you on or after 23 September 2020, these employee(s) can be re-employed and placed on furlough.
- Note that said employee(s) must have been employed on the employer’s PAYE payroll on or before 23 September 2020 and an RTI submission notifying payment in respect of that employee to HMRC must have been made between 20 March and 23 September 2020.
Agreements with staff:
- Employers must confirm to their employees in writing the terms of their furlough. The employee does not have to provide a written response.
Staff that are unable to work:
- Employees that are unable to work because they are clinically extremely vulnerable or at the highest risk of severe illness from coronavirus and following public health guidance can be placed on furlough. This appears to be a smaller group of people than those in the ‘shielding’ category who could previously have been furloughed.
Publication of furlough claims:
- From December 2020 the names of employers who have made claims under the CJRS from December onwards will be published.
Further government guidance will be made available at the end of November.
Get in touch with an employment solicitor in Manchester
To speak to an expert employment lawyer about the scheme, or if you are considering redundancies or restructuring within your business, contact Kevin McKenna on 0161 838 7851 or email email@example.com.