On 29 May 2020 the Chancellor of the Exchequer set out a number of changes to the Coronavirus Job Retention Scheme (CJRS), which will take effect over the next few months.  A summary details of these (and the Self Employed Scheme) can be found below.

Flexible Furlough Guidance

The devil as ever will be in the detail and the updated Guidance can be found here.

In the meantime, headlines include:-

  • The Scheme is closed to new entrants from 1st July  – however this means in practice that 10 June 2020 was the last day that employers can place employees on furlough – on the basis that they need to complete 3 full weeks of furlough to be eligible.
  • From 1 July, ‘flexible furlough’ is being introduced, meaning employees will be able to work part-time and be furloughed part-time. This has been brought forward from 1st  The employer will still be able to claim under the Scheme for such employees’ normal hours not worked but will have to pay in full for any hours worked, and will be responsible for tax and NI contributions on those payments. To be eligible for the grant, employers will have to agree with their employees any new flexible furloughing arrangement and confirm that agreement in writing.
  • From 1 August, employers will have to pay employee’s national insurance contributions and pension contributions, and can no longer reclaim them through the Scheme.
  • From 1 September, the government will only reimburse 70% of salary (up to a maximum of £2,190 per month). Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee).
  • From 1 October, the government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more).
  • The scheme will close on 31 October 2020

We have updated our FAQs here and will provide more updates when the information becomes available.

For further advice or assistance on these issues in the meantime please contact any member of the  Employment Team.

This article is accurate as at 12 June 2020. Please check our COVID-19 Business Support page for up to date developments.

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