Changes to the Coronavirus Job Retention Scheme

June 2nd 2020

CJRS will continue until 31 October 2020 with these changes

• From 1 July 2020 businesses will have the flexibility to bring furloughed employees back to work part time.
• From August 2020 to October the level of the CJRS grant for furloughed employees will be reduced.

Flexibility from 1 July

• From 1 July businesses will be able to decide on part time hours or shift patterns for their employees.
• Employers will pay for the wages and employers NIC of their employees for the hours worked.
• A CJRS grant can be claimed for the hours the employees are not working calculated by reference to their usual hours worked in a claim period.
• To be eligible for the grant, employers must agree with their employee any new flexible furloughing arrangement and confirm that agreement in writing.
• When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.
• Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
• Further detailed guidance on flexible furloughing is expected to be published on 12 June.

Reduction to the amount of the CJRS grant from August

• June and July - the amount of the CJRS grant will remain at the current rate of the lower of 80% of wages and £2,500 per month, plus the employers NIC and the minimum automatic enrolment employer pension contributions on that wage.   
• August
  • the CJRS grant will continue to pay 80% of wages up to a cap of £2,500,
  • employers will pay the associated employers NIC and pension contribution
• September
  • the CJRS grant will pay 70% of wages up to a cap of £2,187.50,
  • employers will pay the employers NIC and pension contribution
  • employers will pay the employees 10% of wages up to £312.50, to make up the 80% total up to a cap of £2,500
• October
  • the CJRS grant will pay 60% of wages up to a cap of £1,875.00,
  • employers will pay the employers NIC and pension contribution
  • employers will pay the employees 20% of wages up to £625, to make up the 80% total up to a cap of £2,500

Other key points to the changes to the CJRS

• A furloughed employee will continue to receive 80% of their wages up to a cap of £2,500 for the time that they are furloughed and not working up to the end of the scheme.  Employers can continue choose to top up the employees’ wages above the scheme grant.
• The scheme will close to new entrants from 30 June.  From July onwards employers will only be able to furlough employees that they have furloughed for a full three-week period prior to 30 June.
• The final date by which an employer can furlough an employee for the first time will therefore be 10 June, in order for the current 3 week furlough period to be completed by 30 June.
• Employers will have until 31 July to make any claims in respect of the period to 30 June.
• There will be a maximum limit to the number of employees who can be included in a claim. The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim under the current CJRS.

We will continue to monitor Government announcements and provide updates as the situation evolves over email, on our website, LinkedIn and Twitter account.

Please contact your BGM advisor or email communications@bgm.co.uk if you would like any assistance.