Update on the changes to the CJRS (furlough)

by Emma Fox

On Friday the Chancellor, Rishi Sunak, announced more details about the extension to the CJRS and what changes we can expect.

As we know the scheme has been extended to the 31st October 2020.

Flexible Furloughing 

  • From 1st July you can bring furloughed employees back to work part time (changed from the original date of 1st August)
  • The government will continue to pay 80% of their wages for any of the days they DO NOT work until 31st August 2020
  • So for example you could bring an employee back to work for 2 days a week and furlough them for 3
  • You, the employer, decides the hours or shifts to be worked by the employee but this must be agreed with the employee in writing.

Employer contributions to the Furlough Pay 

From August the grant will change as follows:

  • June & July – the government will continue to pay 80% of wages capped at £2,500 as well as Employers National Insurance and Pension contributions
  • August – The government will continue to pay 80% of wages capped at £2,500 BUT Employers National Insurance and Pension contributions will be paid by the employer
  • September – The government will pay 70% of wages capped at £2,187.50 – employers will pay the additional 10% to make this up to 80% along with ER NIC and Pension contributions
  • October – the government will pay 60% of wages capped at £1,875 – employers will pay the additional 20% to top this up to 80% along with ER NIC and pension contributions

Remember that if you are a small employer the employer NIC bills will still be covered by your Employment Allowance.

Important

No new employees can be added to the furloughed after 30th June.  An employee will need to have been furloughed for the first time by 10th June in order to claim for them as they need to have completed their 3 weeks by 30th June.

We will be working with you all to support these changes and continuing to make the calculations and claims.  We will just need to ensure we have a very clear understanding of what each employee is or is not working.

As always we are here to help if you have any questions.