Coronavirus Job Retention Scheme update from Stewart & Co

As you may be aware the Coronavirus Job Retention Scheme (CJRS) has been extended to 31 October 2020 with greater flexibility for furloughed employees performing some of their usual work from 1 July 2020; albeit with reducing contributions to wage costs by the government.

*Please read, this may affect your ability to make furlough claims after 30 June 2020*

As you may be aware the Coronavirus Job Retention Scheme (CJRS) has been extended to 31 October 2020 with greater flexibility for furloughed employees performing some of their usual work from 1 July 2020; albeit with reducing contributions to wage costs by the government.

However, to be eligible for this extended scheme an employee must have already completed a 3 week period of furlough by 30 June 2020. This means that if you intended to make a claim for someone after 1 July 2020 and they have not yet been furloughed the last date that their furlough can start is 10 June 2020 and so their last day of work will need to be 9 June 2020.

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim a CJRS grant for their normal hours not worked.

However, the amount that the government will contribute reduces each month while becoming contingent on the employer also making a contribution and covering the NI and pension due on the furlough pay, as shown below.

Government contribution to wages Government contribution to NI and pension Compulsory employer contribution
July 80% (up to £2,500.00) Employers NI and auto enrolment minimum 0%
August 80% (up to £2,500.00) 0% 0%
September 70% (up to £2,187.50) 0% 10%
October 60% (up to £1,875.00) 0% 20%

In addition to the compulsory contribution the employer will still have the option to top-up the final 20% to ensure employees receive 100% of their pay.

We believe that the monthly cap on the government’s contribution will be reduced in proportion to hours worked each month but further guidance on the calculations is due to be published on Friday 12 June 2020.

From July 2020 onwards it will not be possible to make a claim including a number of employees exceeding the number in a single claim made up to 30 June 2020.

If you have any questions regarding this please contact your relationship Partner or email us at enquiries@stewartco.co.uk