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Covid-19 HR advice: Job Retention Scheme

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Government has confirmed that Coronavirus Job Retention Scheme (CJRS) will be extended until 30 April 2021.

Read our Coronavirus Job Retention Scheme (CJRS) FAQs below and check eligibility for the CJRS. Read further Covid-19 HR advice FAQs.

From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

For claims from 1st July 2021, employers must top up employees’ wages to make sure they receive 80% of their wages (up to £2,500) for the hours they are on furlough. The caps are proportional to the hours not worked.

Shielding guidance was paused on 1 April 2021, but some people may still choose to limit contact because they are particularly at risk of becoming seriously ill if they caught coronavirus.  An individual risk assessment must always be undertaken. Take advice from our HR team if you are unsure how to treat absence in these circumstances. Furlough may in some cases remain appropriate.

For periods starting on or after 1 May 2021, you can claim for employees who were employed on 2 March 2021, as long as you have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 2 March 2021, notifying a payment of earnings for that employee. You do not need to have previously claimed for an employee before the 2 March 2021 to claim for periods starting on or after 1 May 2021.  People could be re-employed and furloughed subject to those criteria.

Employers must pay for (a) hours worked (b) employers NI and pension contributions on all pay.

From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough.

Employers will top up employees’ wages to make sure they receive 80% of wages (up to £2,500) in total for the hours the employee is on furlough. The caps are proportional to the hours not worked.

They can choose whether or not to ‘top-up’ the 80% for hours not worked (for example, if you wish to maintain full pay for someone on full or partial furlough).

No, an employee can be furloughed for the first time.

This is a bit of a headache! People previously furloughed must have their reference pay and usual hours calculated in the same manner as previous, i.e. under the original CJRS. New claims will have a new calculation for reference pay and usual hours.

Only take part in training, volunteer for a different organization or work for another employer. They cannot work or provide a service to their employer.

No, you could furlough some but not all. You can also partially furlough an individual.

Remember that if an employee was previously furloughed, the old calculation method must be used. If the person in first furloughed on or after 1 November 2020, then the new calculations apply. The new calculations are as follows. Pay is calculated for people on a fixed salary as 80% of the wages payable in the last pay period which fell on or before 30 October 2020. Pay is calculated for people whose pay varies as 80% average between the later of their start date or 6 April 2020 and the day before their furlough under the extended scheme begin. The 80% cap is calculated in the same manner as under the previous CJRS.

Remember that if an employee was previously furloughed, the old calculation method must be used. If the person in first furloughed on or after 1 November 2020, then the new calculations apply. The new calculations are as follows. If the employee has fixed hours and their pay does not vary according to hours worked (e.g. a salaried employee) hours are taken from the last pay period which fall on or before 30 October 2020. If an employee works variable hours, use the average hours between 6 April 2020 and the day before their furlough under the extended scheme begins.

Claims can be made from 11 November 2020. As previously, there’s a seven consecutive calendar day minimum claim period. Claim periods must start and end within the same calendar month. You can claim in advance of an imminent payroll run or in arrears. There’s a time limit which is 14 day after the calendar month you are claiming for. Further details will be provided once the full guidance is published.

Read our other Covid-19 HR FAQs