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Important Coronavirus Job Retention Scheme Update: New Deadlines

4th Jun 2020
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Following the UK Chancellor’s update regarding the latest changes to the Coronavirus Job Retention Scheme, there have been some time-critical developments. 

The key change announced is that the Scheme will close to new entrants from 30 June 2020

From this date, employers will only be able to furlough employees that they have furloughed for a full three week period before 30 June 2020. If any employees are yet to be furloughed for the first time, that the company would like to place on furlough leave going forward, the leave must have commenced by 10 June 2020 at the latest for you to be eligible to claim for their salary through the Scheme. Employers will have until 31 July 2020 to make any claims in respect of the period to 30 June 2020.

A second significant development is that from 1 July 2020 companies will be able to bring their employees back part-time, while still benefiting from the support of the Scheme for the days/hours that they are not working. Employers must pay wages for the days worked. This change comes one month earlier than previously announced, in line with the easing of lockdown which has also advanced more quickly than first predicted. 

The much anticipated tapering of the Scheme will look like this:

  • Financial support through June and July 2020 will remain unchanged. The Government will pay up to a cap of £2,500 as well as Employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
  • During August the Government will still contribute 80% of wages as before up to a cap of £2,500 but the employer will be responsible for employers ER NICS and Pension contributions.
  • In September the Government support will reduce to 70% up to a cap of £2,187.50. Employers will pay ER NICS and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • In October the Government support will reduce to 60% up to a cap of £1,875. Employers will pay ER NICS and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
  • At the end of October, the Scheme will end.

Further guidance on flexible furloughing and how employers should calculate claims will be published later this month.

If you require advice or support, please get in touch

Ben Watters
Associate, HR Advisory
[email protected]

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