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CJRS Extension Update and Changes

June 1, 2020

The Coronavirus Job Retention Scheme set in place in the early stages of the social distancing measures in place across the country has been reviewed and amended by the Chancellor.

We have highlighted the key points below:

Key Changes:

  • The scheme will operate as is until 30th June 2020 but finish on 31st October 2020.
  • The scheme will close for previously unfurloughed employees from the 30th June, following this date employers will only be able to furlough employees who were furloughed for the 3 weeks period up to the 30th June. This means that employees must be before 10th June to qualify for the minimum 3 week period.
  • Employers will have until 31st July to make a CJRS claim for periods up to the 30th June.
  • Employers will be required to provide details of usual hours an employee is expected to work as well as the actual hours worked. This is because claims are being changed to an hours basis.
  • Any arrangement made regarding working hours between the employer and employee must cover at least one week and be confirmed in writing to the employee.
  • When claiming for the furloughed hours, the employer will need to report and claim for a minimum 1 week period.
  • The employer can claim over a longer period such as 2 weekly or monthly cycles.
  • From 1st August the CJRS claim remains at 80% of the salary/wages. However, businesses will meet the employer’s pension contributions and employers National Insurance from then onwards.
  • From 1st September the Government will meet 70% of wages up to £2,190. The remaining 10% will be for the employer to pay.
  • From 1st October the Government will meet 60% of the wages up to £1,875. Employers will need to meet the remaining 20%.
  • Further information on calculating the flexibility of CJRS claims will be available on 12th June.

If you would like to discuss any of the factors above or to place one of our experienced team in charge of completing these actions on your behalf, please click here to get in contact with us.

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