Posted on Tuesday May 12, 2020
The Chancellor has confirmed that the Coronavirus Job Retention Scheme (CJRS) will be extended for four months until the end of October.
There will be no changes to the current scheme until the end of July, when employers currently using the scheme may be able to bring back furloughed employees part-time.
The Government has said furloughed workers will continue to receive 80 per cent of their usual salaries capped at £2,500, but that from August employers will have to make a currently unspecified contribution to this cost. Details of these arrangements are due to be published by the end of May.
Under the current rules, employers are allowed to retain employees on the PAYE Payroll who are not carrying out work for them by placing them on furlough and to claim a grant of 80 per cent of a furloughed employee’s usual pay, plus employer National Insurance Contributions (NICS) and minimum employer auto-enrolment pension contributions.
Since the scheme was launched in March, more than one million businesses have furloughed more than 7.5 million workers.
Joanna Alexiou, Associate Solicitor within Mackrell.Solicitors Employment Law team, said: “The Government is to release further guidance at the end of May that should further clarify the new arrangements, including the criteria for part-time working.
“These changes may require a review of existing employment contracts or an agreement between employers and employees. Employers must follow existing employment law when selecting workers to furlough, in particular the rules around discrimination, to avoid the potential for tribunal claims in future.”
If you have questions about what the extension of the CJRS means for you and your business, please contact Joanna Alexiou.