Furlough scheme extended to the end of March 2021 - Kuits Solicitors Manchester
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Furlough scheme extended to the end of March 2021

Furlough scheme extended to the end of March 2021

5th November 2020 - Published by Kuits employment team

The Chancellor, Rishi Sunak, has today (November 5) announced in the House of Commons that the Coronavirus Job Retention Scheme (CJRS) will be extended to the end of March 2021 “to protect jobs and livelihoods” in the UK.

The government will pay 80% of salaries but this policy will be reviewed in January 2021 “to decide whether economic circumstances are improving enough to ask employers to contribute more”. The incentive of the Job Retention Bonus will fall away. Mr Sunak has indicated that another retention incentive will be introduced at the appropriate time.

Details of the CJRS

Here are some of the details of the CJRS that have previously been announced:

  • The level of the grant will mirror levels available under the CJRS in August, so the government will pay 80% of wages up to a cap of £2,500.
  • Businesses will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5% of total employment costs.
  • Employers will have flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time.
  • To be eligible under the CJRS employees must be on an employer’s PAYE payroll by 23:59 30th October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30th October 2020. It is not necessary that the employee has been furloughed previously.
  • Employers can rehire employees who were made redundant after 23 September and place them on the CJRS.
  • When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of seven consecutive calendar days.
  • Employers should ensure that they have appropriate written records of the agreement reached with employees placed on furlough.
  • The Job Support Scheme which was scheduled to come in on Sunday 1st November, has therefore been cancelled.

To speak to an 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 kevinmckenna@kuits.com.

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