Changes to the Coronavirus Job Retention Scheme

On Friday the Government issued details on how the Coronavirus Job Retention Scheme (CJRS) will change over the next few months with the aim of continuing to support jobs and business as people return to work. The CJRS will close to new entrants from 30 June which means that the final date by which an employer can furlough an employee for the first time is 10 June 2020 (since the minimum period anyone can be furloughed for is three weeks).

From 1 July 2020 employers may bring furloughed employees back to work part time and where they do, they will be responsible for paying employee's wages for the hours they work. Any such arrangement must be for a minimum period of one week. Where employers do bring employees back to work, any agreement to a new flexible furlough arrangement must be confirmed in writing.

The CJRS will continue to pay employees for the time they are unable to work, as follows:

• From 1 July 2020 the CJRS will continue to pay 80% of the employee's wages up to a cap of £2,500 as well as employer's NI and pension contributions.
• From 1 August 2020 the CJRS will pay 80% of the employee's wages up to a cap of £2,500. The employer must pay the employer's NI and pension contributions.
• From 1 September 2020 the CJRS will pay 70% of wages up to a new lower cap of £2,187.50. The employer must pay the employer's NI and pension contributions and 10% of the employee's wages (to bring the total paid to the employee up to 80% or the £2,500 cap)
• From 1 October 2020 the CJRS will pay 60% of wages up to a new lower cap of £1,875. The employer must pay the employer's NI and pension contributions and 20% of the employee's wages (to bring the total paid to the employee up to 80% or the £2,500 cap).

To read the Government news story click here

To read the scheme factsheet, click here

Further guidance is expected on 12 June 2020.