Furlough scheme extension guidance is published

The CJRS has been extended until 31 March 2021.  Between 1 November 2020 and 31 January 2021, the Government will pay 80% of staff wages for hours not worked, up to a maximum of £2,500 per month, which is a return to the level of contribution employers could claim in August.  The grant does not cover employers’ national insurance or pension contributions.

The CJRS will be reviewed in January next year, at which point the government contribution could be reduced and employers required, once again, to make an additional contribution.

Some other key elements to the CJRS are:

• Employers do not need to have claimed for an employee before 30 October to claim for periods from 1 November.

• Employees made redundant, or stopped work on or after 23 September can be re-employed and placed on furlough, provided they were on payroll on or before 23 September.

• Employers can furlough employees for any amount of time and for any work pattern, while still being able to claim the grant for the hours not worked.

• Flexible furlough agreements can last any amount of time, however the minimum claim period is 7 consecutive calendar days.

• Employers can continue to claim for periods ending on or before 31 October until 30 November.

• There is no maximum number of employees that an employer can claim for from 1 November.

The government is currently reviewing whether employers should be eligible to claim for employees serving contractual or statutory notice periods.  Any change in approach will take effect for claim periods starting on or after 1 December, with further guidance expected to be published in late November.

If you have any queries relating to the CJRS or any other employment issue, please do not hesitate to contact the Alexandria Evans on 01904 561 444 or by email at alex.evans@luptonfawcett.law