Coronavirus Job Retention Scheme (CJRS) extended until end of March 2021

The UK Government have announced the existing Coronavirus Job Retention Scheme (CJRS) will be extended until the end of March 2021.  The new Job Support Scheme declared in recent months appears to have been withdrawn for now, and the bonus scheme that was to commence on 1^st November 2020 has also been postponed.

In this blog, Goldstein Legal will provide some guidance in relation to the CJRS extension and what it means for employers and employees. Additional information was announced on 10^th November, and our blog has been updated to reflect this.

Extension

Employers will be able to claim up to 80% of an employee’s income, capped at £2,500 per month, provided the employee was PAYE enrolled on or before 30^th October 2020. Employers are also required to continue to pay the NI and pension contributions of each employee placed on the Scheme. However, it is worth noting that the Government intends to review these provisions in January 2021, and the Scheme will be subject to amendments from 1^st December 2020.

There is no requirement for an employer to have previously applied for CJRS to be eligible on the extended Scheme. However, an employee must be notified by their employer in writing that they are to be placed on the CJRS, and this notice should be signed by the employee wherever possible.

Similar to the recent ‘Flexible Furlough,’ employees can be placed on the extended Scheme on a full or part-time basis. However, the period claimed for must be no shorter than seven consecutive calendar days.

Employers are also advised that claims made before 13^th November 2020 will be backdated from 1^st November 2020. Moving forward under the extended Scheme, claims for any month must be submitted by 11:59pm 14 days after the end of that month. It is also worth noting that 30^th November 2020 is the final day to claim on the old CJRS that ended on 31^st October 2020.

HMRC have also confirmed their intention to publish the details of employers claiming under the extended Scheme from 1^st December 2020.

Eligibility

An employee on any type of employment contract is eligible for the Scheme, provided they were employed on or before 30 October 2020. As with the earlier requirements, this date relates to whether HMRC had been notified of the employment, and not the date that the employee actually commenced working. Therefore, in order to claim for an employee, an employer must have made a Real Time Information submission in respect of the individual between 22 March 2020 and 30 October 2020.

Employees that were made redundant or left after 23^rd September 2020 are eligible for the Scheme if re-employed. As above, a Real Time Information application must have been submitted in respect of the employee between 20^th March 2020 and 30^th October 2020 for them to be eligible. Employees currently serving their statutory redundancy period may also be claimed for, although it has not been confirmed whether this also extends to those completing their contractual period of notice.

If an employee is shielding, they may still be furloughed under the Scheme, but is it not intended to be used for short-term sickness or absences.

Employee Rights

As per earlier iterations of the CJRS, employees are not permitted to work while under the Scheme but may carry out training and volunteer opportunities provided such activities do not generate income for their employer.

Employees placed on the Scheme will continue to be entitled to annual leave, maternity and other parental rights, redundancy, statutory sick pay, and other similar items. Should a furloughed employee wish to take annual leave, this is to be treated as time on furlough and not working hours.

More Information

The following Government website has been updated with the most recent guidance, and is a useful resource for both employers and employees:

https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

If you require assistance in relation to employment matters, including the CJRS, Goldstein Legal are able to help. Contact us on 01753 865165 or [email protected]