This page talks about the changes to the Coronavirus Job Retention Scheme (announced 29th May).
Additional information can be found elsewhere on our website, simply click any of these links:
Our Summary of the Changes to the Coronavirus Job Retention Scheme.
Since March, UK employers have been able to participate in a wages support scheme hailed by the government as “amongst the most generous in the world”. The scheme has been used extensively by employers with £15 billion claimed so far protecting 8.4 million jobs up to the end of May.
In a bid to prevent mass redundancies, the Chancellor announced on 12 May that the Coronavirus Job Retention Scheme was being extended to the end of October, meaning the scheme would run for a total of 8 months. However, at that stage, Rishi Sunak advised further detail would follow by the end of May.
On Friday 29 May, after most UK businesses had switched off their mainly remote offices for the weekend to enjoy a forecast of sunny weather, the keenly anticipated announcement came of how the furlough scheme extension would work going forward. Importantly, this covered what employers would be required to contribute for the remainder of the scheme, and what it would mean for getting employees back to work.
As was the case when the furlough scheme landed, the devil is always in the detail, and as yet, the full guidance will not be published until 12 June. In the meantime, employers have been provided with general principles to support their planning. Below is a summary with links to further information which we would encourage you to download.
The government have advised that employers will be required to start contributing 'modestly' to the scheme from August. The status quo remains the same in June and July – employers can continue to claim 80% of wages up to £2,500 along with Employer’s National Insurance and Pension Contributions, and can voluntarily top-up employee wages. From August onwards, they will need to contribute Employer’s National Insurance and Pension Contributions. Then in September and October, employers will also be required to contribute 10% and 20% respectively to make up the employee’s wages to 80% (plus then the additional 20% should they wish to do so).
We know this can get complicated, so please download our CJRS Changes - Claim Information Table (click here to download) for more detail as it currently stands on the changes to what you can claim - all in a simple table so you can easily understand.
The other key change is that employers will have enhanced flexibility in operating the scheme in that they will have the opportunity to have employees working part time whilst still on furlough. Up to now, employees have not been able to do any work for their employer whilst on furlough, and this is being relaxed to support employers in starting to get employees back to work during current coronavirus restrictions.
Employees will need to be paid under their normal contract of employment for hours worked, and the employer will be then claim for the hours not worked. Employers will need to agree the flexible working patterns in writing with the employee, and provide detail as part of their claim of usual working hours and actual hours worked whilst on furlough. This appears to be working on the principle of trust, but employees will be able to report concerns to an HMRC fraud hotline.
Please download our CJRS Changes – Key Dates for Employers (click here to download) d document to keep you right over the next 5 months.
In the meantime, we want to particularly highlight Wednesday 10 June – this is the last date employers will be able to furlough an employee for the first time to be able to continue to participate in the scheme. The scheme officially closes to new entrants on 30 June, but this is an artificial deadline as the employees need to have been furloughed for 3 weeks prior to 30 June. We therefore strongly urge employers to assess your business requirements as far as possible to consider whether you require to furlough any staff currently working if your business is affected by coronavirus.
The French Duncan HR team are on hand to help with all aspects of furlough and other measures you may require to survive the current crisis. We will continue to keep you updated as further details emerge on the CJRS scheme, along with other useful employment information.
0141 221 2984
0141 221 2984
Louise is a highly experienced and qualified HR specialist who leads French Duncan HR Services. With over 10 years experience in HR, Louise has a Masters in HR Management, a law degree and is a chartered member of the CIPD and a trained ACAS mediator.
Louise and the rest of the team at French Duncan HR Services work with a wide variety of organisations providing support in employment matters, including SMEs, Owner Managed Business and Not-For-Profit organisations on an on going basis providing advice and guidance in relation to tricky people issues including disciplinary, grievance, absence, redundancy and TUPE. The team can also work on specialist projects such as HR documentation, HR projects, HR training and mediation. For further details or to sign up for regular employment updates, please visit our website.
For a free initial consultation meeting, please contact Louise McCosh on 0141 221 2984 or email firstname.lastname@example.org.
0141 221 2984
0141 221 2984
Lois is an experienced HR Specialist in HR and Employment Law Compliance, and provides exceptional support to FDHR clients:
Director & Head of Payroll
01786 435 332
01786 435 332
Linda joined French Duncan when the firm merged with Macfarlane Gray in 2001. She has played a significant role in the growth of the firm, previously managing the workflow and business development and more recently in the last few years has established French Duncan’s Payroll team.
Linda was promoted to Head of Payroll in 2017, and since then has grown the team to 10. The team are based at our Stirling office and provide services to a wide range of clients from Aberdeen to London.
Understanding from first-hand experience the challenges faced by family businesses, Linda uses this knowledge to assist her in her dealings with existing and potential clients.