Extension of the Coronavirus Job Retention Scheme (CJRS)

Last month, the Chancellor Rishi Sunak, announced an extension to the Coronavirus Job Retention Scheme (CJRS). The CJRS enables employers to furlough employees, so that the government pays 80% of their wages. You can find information about the original CJRS here. To help our clients, we’ve provided a summary of the two major changes to the CJRS:

1. From July 1^st the scheme will be more flexible. Since the scheme was launched, furloughed staff have been unable to do any work for their companies. However with these changes, staff will be able to work for part of the week and be furloughed for the rest. This will help companies that need essential work to be done. Employers will decide the hours that staff work on their return. This can be for as long as needed, and there is no minimum time that their staff can be furloughed. These arrangements need to be confirmed with the employees in writing. If employees are unable to return to work, or employers do not have work for them, then they can continue to be furloughed full time.

• From August 1^st employers will have to contribute to the costs of paying their furloughed staff. In August employers will pay Employer NIC and pension contributions on the furloughed wage. In September employers will have to contribute 10% of the furloughed payment. Finally, in October employers will have to contribute 20% of the furloughed payment, when the scheme is expected to end.

You can find more information on the extension and changes to the CJRS on the government’s website. If you need any help or advice, feel free to contact us on 0161 773 7737, or via email at  office@alexbursk.co.uk