Support For Employers & Employees
Coronavirus Job Retention Scheme – Furloughed Workers.
The government have advised that the Coronavirus Job Retention Scheme will be accessible to employers whose operations have been severely affected by coronavirus (COVID-19).
This is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020.
By accessing this scheme, employers will be able to use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.
The scheme is available online and can be accessed here. Any UK organisation with employees can apply, including:
- recruitment agencies (agency workers paid through PAYE)
- public authorities
Employers can use this scheme anytime during this period.
The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.
To find out more about the Coronavirus Job Retention Scheme click here
We have also created a:
Furlough Policy Template which can be downloaded here.
Furloughed Employee Letter Template which can be downloaded here.
Changes To CJRS & The Introduction Of Part-time Furlough
On the 28th of May, the Chancellor Rishi Sunak announced plans to end the eight-month coronavirus job retention scheme (CJRS) by gradually withdrawing taxpayers’ contributions from August.
The CJRS or furlough scheme will continue in its current form, paying 80% of employees’ wages up to £2,500 with no employer contribution until the end of July. However, from August employers’ will be expected to pay a “modest contribution”.
Employers will only have to cover national insurance and employer contributions, which is around 5% of total employment costs.
The government furlough contribution will drop from 80% to 70%, the employer is obligated to pick up the 10%.
Employers will pay 20%, whilst the government’s contribution will reduce to 60%.
After this, at the end of October, the Government contributions will cease and the scheme will come to an end.
The part-time furlough scheme will also be available from the 1st of July and will enable workers to return part-time whilst still receiving a grant for the time when they are not working.
How Will It Work?
Under the part-time furlough scheme, a furloughed 5-day week worker could return for two days and would be paid as normal, whilst the government would cover the other three days pay under the CJRS.
The government will pay 80% of wages for any employees’ normal hours which they do not work up until the end of August.
This means that employees can work as much or as little as the business needs, with no minimum time that they can furlough staff for.
The part-time furlough scheme must apply to a time period of at least one week and be confirmed to the employee in writing. Longer periods such as on monthly or two weekly cycles can also be claimed for.
Who Is Eligible?
Part-time furlough is only available for current furloughed workers, therefore, the scheme will close to new entrants from the end of June.
You can find out more about the second stage of CJRS and part-time furlough here.
Information updated 08.06.2020