23 July 2020
Stop press: On 2 October Government announced the last date for making claims under the CJRS will be 30 November 2020. More information to follow.
The Coronavirus Job Retention Scheme (CJRS) has supported 9 million employees and over 1 million employers with grants for furloughed employees. Furloughed employees must receive 80 per cent of their pre-furlough reference salary up to a maximum of £2,500 per month.
From 1 July, the rules changed and flexible furlough became available. Employers must (with limited exceptions) have furloughed the employee by 10 June. Employers can bring employees back to work for any amount of time, and on any work pattern, and can claim for any usual hours the employee is instructed not to work. To use flexible furloughing, employees need to have agreed not to work for the furloughed hours, and have supplied a written agreement to change contracted pay or hours terms in order to flexible furlough.
To be eligible for the CJRS grant from 1 July 2020, employers must continue to pay furloughed employees 80 per cent of their wages, up to a cap of £2,500 per month, for the hours they are furloughed. CJRS grant payments to employers for furloughed hours will taper per employee:
June and July: as above.
August: 80 per cent of wages up to a cap of £2,500 per month for furloughed hours Employer will pay ER NICs and pension contributions.
September: 70 per cent of wages (up to a cap of £2,187.50) for furloughed hours. Employers will pay ER NICs and pension contributions and 10 per cent of wages.
October: 60 per cent of wages (up to a cap of £1,875) for furloughed hours. Employer will pay ER NICs and pension contributions and 20 per cent of wages.
The job retention scheme cannot be used for redundancy payments - its integral purpose is to continue employment. Find more information on workforce planning and collective consultations here.
How can RSM help?
Furlough agreements review and updating for flexi-furloughing.
Support to make employment terms changes
Holiday planning to meet both CJRS claims and annual leave requirements.
Assistance with claims reporting, reviewing and corrections submissions to HMRC.
Reviewing that furlough procedures support the claim requirements.
|⑥||Assistance with making sure all parties are paid the correct amounts including employees and pensions schemes.|
|⑦||Redundancy costs structuring with CJRS support.|
For more information, please contact