Coronavirus Job Retention Scheme Update

The CJRS guidance was updated on the 12th June 2020 and provides details on how the scheme will change from the 1st July 2020.

As of the 1st July, employees can work for some of the week and be furloughed for the rest.

The minimum three week period for furlough is removed (as of 1 July 2020).

There is no minimum period of furlough, although any CJRS claim must be in respect of a minimum one week period (so employers can only put in four claims a month).

The first time you will be able to make claims for days in July will be 1st July, you cannot claim for periods in July before this point.

31st July is the last day that you can submit claims for periods ending on or before 30th June.

From 1st July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.

From 1st August 2020, the level of grant will be reduced each month.

To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

This means a “top-up” in September and October.

The timetable for changes to the scheme is set out below.

Wage caps are proportional to the hours an employee is furloughed.

For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours:

• There are no changes to grant levels in June.
• For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.
• For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.
• For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.
• For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

Wage caps are proportional to the hours not worked.

Employers will have to pay their employees for the hours worked.

The Coronavirus Job Retention Scheme will close on 31 October 2020.

Updated guidance can be found at:

• Check if you can claim for your employees’ wages through the Coronavirus Job Retention Scheme
• Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme
• Steps to take before calculating your claim using the Coronavirus Job Retention Scheme
• Example of how to calculate the amount you should claim for an employee who is flexibly furloughed
• Examples of how to calculate your employees’ wages, National Insurance contributions and pension contributions