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HR Services delivered as and when you need them

Corona Virus Job Retention Scheme from 1st July 2020

The CJRS closed to new entrants from 30 June 2020 therefore any employees who had not previously been furloughed can no longer join the scheme.   There are some exceptions in relation to employees returning from extended parental  leave and military reservists returning to work.  To check who qualifies for furlough please check out the link below.

https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme

The scheme itself will now close on the 31st October 2020.

Bringing Employees Back to Work

From 1st July 2020 to the 31st October 2020

Furloughed employees can

  • Return to work full time.
  • Come back on a part time work /part-time furlough basis this can be for any amount of hours and/or any shift pattern.
  • Remain on furlough.
  • Be re-furloughed.

You will be able to bring employees back off furlough for short periods of time if you wish and can therefore return some employees to work part time and still receive some financial support for the days they are not working

Under the extended scheme the qualifying periods for claiming is 1 week and so you can have an employee:

  • Working full time for 1 week and furloughed for 1 week
  • Working Part time and Part furloughed all the time
  • Working Part time and Part furlough for 1 week and fully furloughed after that

any variation, as long as you have each week planned and agreed with employees.

Notes:

  • Work patterns should be determined on a week-by-week basis (not 3-weeks as previously)
  • When an employee is on Furlough you must pay them 80% of their wages irrespective of the amount you can claim back which will change monthly.
  • When the employee is actually at work, you must pay them 100% of their wages
  • Employees who are off work on furlough must not carry out any work for you

Claim Amounts

July 2020

80% of wages will be paid by the government up to a cap of £2,500 as well as Employer National Insurance and pension contributions for any furloughed periods.

August 2020 – (From this point the level of grant will reduce each month until the scheme ends on 1st October 2020)

80% of wages paid by the government up to £2,500 cap for any furloughed periods but Employers will need to pay Employer National Insurance and pension contributions.

September 2020

70% of wages paid by the government up to £2,187.50 cap. for any furloughed period.  Employers will pay Employer National Insurance, pension contributions and to top up employee wages by 10% to make pay up to 80% for any furloughed time off work (£2,500 cap)

October 2020

60% of wages paid by the government up to £1,875.00 cap. for any furloughed period.  Employers will pay Employer National Insurance, pension contributions and to top up employees wages by 20% to make pay up to 80% for any furloughed time off work (£2,500 cap).

Remember you must pay your employee 100% of their wages for any days when they are actually at work and they must not work for you during any period whilst furloughed.

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.

Claims Criteria

You will need to:

  • Agree any new working arrangements with employees returning to work.
  • Agree with employees what any flexible working arrangements will be.

Please remember it is important that you retain all documents for up to 5 years showing your decisions, who was furloughed and the relevant dates, any correspondence with employees, calculations on how you reached your claim amounts. HMRC will be carrying out audits to check the genuine nature of claims.

Making a Claim

With all the planned monthly changes making a claim will not be exactly straight forward.  If you use a third party organisation or your accountant for your Payroll they should have the tools available to do this.  The link below gives you more details around making a claim along with online calculators to assist you.

https://www.gov.uk/guidance/calculate-how-much-you-can-claim-using-the-coronavirus-job-retention-scheme

Do get in touch if you need any assistance or copies of letters and agreements for any new working patterns you may wish to implement.

 

Sarah Goddard

Phone: (01229) 480676

Mobile (07715) 822216

Email: sarah.goddard@turnstonehr.com

Chrissy Tait
Phone: (01229) 821270

Mobile (07725) 735581

Email:  chrissy.tait@turnstonehr.com

Published 11th June 2020

“There is evidence to suggest that good HR practice and people management in SMEs are key factors in strong business performance and can lead to increased productivity.”

- CIPD people Skills Project 2017

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