Further 'Extended' Furlough Scheme (Again)...
So the last weekend in October brought an update on the government support schemes with record notice of less than 24 hours that the Coronavirus Job Retention 'Furlough' Scheme (CJRS) would be extended until December!
It was then announced on the 5th November 2020 that the CJRS would be extended until the end of March 2021, but it didn't stop there! A surprise December announcement revealed the CJRS is now extended until the end of April 2021 and the planned Job Support Scheme will be 'parked' until the furlough scheme has closed.
Whilst, much of the rules remain the same, the extended scheme, effective from 1st November 2020, is more generous in terms of government support than the contributions available in October.
Please note that, from 1st December 2020, you may not claim under the CJRS for any employees currently serving in their notice period.
So, What Do We Know So Far?
From November, the scheme rules closely mirror that of the August scheme rules and whilst the guidance may be subject to changes, the scheme rules as per the most recent December 2020 update are as follows:
You may bring your furloughed employees back to work on a part time basis or furlough them full-time.
You will be able to agree to any working pattern with your employees.
You must pay your employees for all 'worked hours', and be responsible for paying the tax and NICs as per the normal contract of employment.
For 'hours not worked' by the employee, the government will pay 80% of wages up to a cap of £2,500.
The grant must be paid by you to the employee in full.
You will be expected to continue to cover National Insurance and employer pension contributions.
As with the current CJRS, you are still able to choose to top up employee wages above the scheme grant at your own expense if you wish.
When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of 7 consecutive calendar days.
You will need to report hours worked and the usual hours your employee would be expected to work in a claim period.
Are You and Your Employees Eligible?
Neither you nor your employee needs to have previously used the Job Retention Scheme.
To be eligible to be claimed for under this extension, your employees must have been on your payroll by the 30th October 2020.
Employees may be on any type of contract.
Please note, with all coronavirus updates this year, the legislation is being rolled out in very short timescales, so we anticipate more guidance may follow.
The Job Support Scheme, which was scheduled to come be effective from Sunday 1st November, has been postponed until the furlough scheme ends. You can read more information on the Job Support Scheme here
Full details of the scheme and other grants available can be seen on the government website, but if this immediately affects your and your business, please call the HR patch Ltd today on 01252 299 110 or email email@example.com for support!