Nov 2020
The Chancellor announced over the weekend that the Coronavirus Job Retention Scheme (CJRS) that was due to end on 31st October will be extended until 2nd December. The level of support available under the extended scheme will mirror that of what was available under the CJRS in August, with the Government paying 80% of wages up to a cap of £2,500.
What is the criteria for claiming from the CJRS?
- Employers can claim the grant for the hours that their employees are not working, calculated by reference to their usual hours worked in a claim period.
- When claiming the CJRS grant for furloughed hours, employers need to report and claim for a minimum period of seven consecutive calendar days.
- For hours not worked by the employee, the Government will pay 80% of wages up to a cap of £2,500, which must be paid to the employee in full. Employers will pay employer NICs and pension contributions, and should continue to pay the employee for hours worked in the normal way.
- Employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish.
- Neither the employer nor the employee needs to have previously used the CJRS scheme.
- Employees can be furloughed regardless of whether they have been furloughed previously although they must have been on the payroll by 23.59 30 October 2020.
- Employees can undertake other jobs whilst on furlough leave, as long as it doesn't breach the rules of their existing contract.
There is also additional Government support available to busineses by the way of;
- Up to £3,000 per month under the Local Restrictions Support Grant if their premises is forced to closed
- £1,000 for every furloughed employee kept on until at least the end of January
- £1,500 for every out-of-work 16-24 year-old given a ''high quality'' six-month work placement
- £2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s
- Self-employed people affected by coronavirus grant has also been doubled to 40% of profits, with a maximum grant of £3,750 over a three-month period.
If you require advice on this or any other employment law related issue, please contact the Employment team at Downs Solicitors LLP.
