The Coronavirus Job Retention Scheme is now being extended to 31 March 2020.
The key points that we know so far are:
- For claim periods until end January 2021, employers will have to contribute NI and pension contributions (no further contribution) and employees will continue to receive 80% of pay up to the cap of £2,500 per month. The employers contribution will then be reviewed for any claims from February onwards.
- Employers can claim whether they have used the scheme previously or not.
- Employees eligible should be on an RTI on or before 30 October 2020.
- Employees who have been furloughed previously will continue to use the same pay hours and reference period. Those employees who have not been furloughed before will use 80% of wages payable in the last pay period ending on or before 30 October 2020 (for fixed pay employees) or 80% of the average payable between the start date of their employment or 6 April 2020 (whichever is later) and the day before their furlough period begins.
- Employees can be furloughed if they are shielding in line with public health guidance or if they have childcare issues related to coronavirus – there is no obligation to do so, it is an employers choice.
- Employees that were employed and on payroll on 23 September 2020 who were made redundant or stopped working for their employer after that date can be re-employed and claimed for – however, again this is an employers choice.
- The deadline for claims up until 31 October remains 30 November.
- Claims can be made from 11 November 2020.
- The Job Support Scheme has been put on hold.
- The Job Retention Bonus will now not be paid in February as it was to encourage employers to keep people in work until end of January but as the scheme is being extended until end March 2021, this will be reviewed at a later date.
Further guidance will be issued on 10 Novermber 2020.