Read on for more information about what’s changed in the Coronavirus Job Retention Scheme and furlough rules

  • Phased contributions from employers

  • Part time working from 1st July 2020

  • No new furlough after 10th June 2020

Do I Have To Contribute To The Scheme?

As we already know, the CJRS will remain in place until the end of October 2020, however the Chancellor has announced a scaled level of contributions as follows:

June & July

The scheme remains as is

August

The scheme will continue to pay out 80% of wages, but employers will no longer be able to reclaim the employers National Insurance and pension contributions.

September

The scheme will pay out 70% of furlough wages, with the employer contributing the remaining 10% (plus the NI and pension contributions mentioned above).

October

The scheme will pay out 60% of furlough wages, with the employer contributing the remaining 20% (plus the NI and pension contributions mentioned above).

Can My Employees Work?

From 1st July 2020, you can start to bring your employees back to work on a part time basis. You must pay them 100% of their pay for any days they work and you can’t reclaim this, but the CJRS will cover the remaining days, where the employee will technically remain on furlough.

We’ll be updating our templates on Monday to include a letter informing employees you want them back in part time and explaining what will happen.

Can I Still Put Employees on Furlough?

For the moment, yes, but the scheme will close for any new furloughs on 30th June 2020, so you must have your employees on furlough by no later than 10th June 2020 in order to ensure they meet the 21 day qualifying criteria. Any employees furloughed after this date will not be eligible for the CJRS.

Other Questions?

Like us, you probably still have lots of questions about how this will affect your business and your employees. We will keep track on the government’s official guidance and update you as and when we get more answers. In the meantime, if you need some help planning for returning employees, please call us.

Do you have questions about furlough?

Give us a call at CUBE HR, we’ll be happy to advise you and we have policies and templates available to meet every HR need.

Why not check out our other blog on Making Staff Redundant Safely and Fairly

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