In short: The Coronavirus Job Retention Scheme explained
Employment lawyers Matthew Clayton and Jenny Hawrot, of Cheltenham-headquartered solicitors Willans, summarise the latest developments on the Coronavirus Job Retention Scheme to emerge.
On Saturday, October 31, the Government announced ‘Lockdown Two’, from today Thursday, November 5, to Wednesday, December 2.
The Job Support Scheme, due to commence on November 1, 2020, has been delayed until December, and the Coronavirus Job Retention Scheme (also known as furlough), due to end on October 31, has been extended to last until the end of Lockdown 2 (including the first four days of November).
So, what does that mean for employers?
We are still waiting for specific guidance from HM Treasury, but their press release indicates that the extended furlough scheme will mirror that which was in place in August this year.
Any agreement to furlough employees must be recorded in a written agreement between the parties following any appropriate consultation with staff.
Employers can furlough staff either flexibly, or full time. The government contribution will rise to 80% of wages for hours not worked (capped at £2,500), and employers must pay NI and pension contributions.
To be eligible, staff need to be on the PAYE real time payroll submission on or before 30 October 2020. There has been no confirmation that the employer and staff member need to have used the CJRS scheme previously, to qualify for furlough in Lockdown 2, although, we await specific guidance in this regard.
We expect the Treasury guidance by the end of the week, so watch this space.
More: Diary Date: Brexit and the end of free movement - how your business can prepare