The furlough scheme is changing

From 1 July, employers using the scheme will have more flexibility to bring their furloughed employees back to work part-time while still receiving support from the scheme. And so, for claim periods from 1 July flexible furlough is possible with the grant covering only furloughed hours.

This revised scheme will run for four months from July through to the end of October.

For claim periods from 1 August to 31 October grants do not cover national employers’ national insurance or auto-enrolled pension contributions.

From September, employers will be required to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

For claim periods from 1 September to 30 September grants of 70% of furloughed employees’ pay or £2,187.50. The employer will be required to top up the 70% to a minimum of 80%,

For claim periods from 1 October grants of 60% of furloughed employees’ pay or £1,875. The employer will be required to top up the 60% to a minimum of 80%,

How long does the scheme run?

From 1 March 2020 until 31 October 2020 – the scheme changes from 1 July to allow for flexible furlough and from 1 August there are also changes to government support levels.

Which employees can you claim for?

Employees who were on payroll (i.e. on an RTI report) as of 19 March 2020 and have been put on furlough. This can include domestic employees such as nannies, company directors, agency workers, employees on fixed-term or zero-hours contracts, foreign nationals (on any type of visa), contingent employees in the public sector and members of limited liability partnerships.

When will grants be paid?

Within six working days of a claim being submitted.

Is there a deadline for claims?

Claims under the first version of CJRS, covering periods up to 30 June, must be made by 31 July 2020. Claims under CJRS V2, the period covering 1 July to 31 October, must be made by 30 November 2020.

How long do staff have to be furloughed?

Under CJRS V1, three weeks minimum, although this can be extended. Under CJRS V2, there is no minimum furlough period.

How to apply?

If you are using Jack Ross, we will make the furlough claim on your behalf.

Alternatively, please see https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme