Last Friday, 29 May 2020, the Government announced further reforms to the Coronavirus Job Retention Scheme (CJRS) including additional details we have been anticipating in respect of ‘flexible furloughing’.

The CJRS will close to new entrants to the scheme from 30 June 2020. From this point onwards, employers will only be able to furlough employees if they have previously been furloughed for a full 3-week period. This means that the final date by which an employer can furlough an employee for the first time will be 10 June 2020.

Employers will have until 31 July to make any claims in respect of the period to 30 June 2020.

From 1 July 2020, claim periods will no longer be able to overlap months and employers who have previously submitted claims with periods that overlapped calendar months will no longer be able to do so.

‘Flexible Furloughing’ from 1 July 2020

• Employers can bring furloughed employees back to work for any amount of time and any shift pattern whilst still being able to claim CJRS for their normal hours not worked. There will be no minimum time for which an employee can be furloughed.
• Employers will be able to agree any working arrangements with previously furloughed employees.
• When claiming CJRS for furloughed hours, employers will need to report and claim for a minimum period of one week. Those making claims for longer periods (such as those on monthly cycles) will be able to do so.
• Employers can claim the grant for the hours their employees are not working calculated by reference to their usual hours worked in a claim period and will need to report both the hours worked and usual hours when making a claim.
• For worked hours, employees will be paid by their employer subject to their employment contract. The employer will be responsible for paying the Income Tax and National Insurance on those amounts.
• We are expecting further guidance to be issued on flexible furloughing on 12 June 2020.

Costs

• In June and July, there will be minimal changes to the CJRS. The Government will continue to pay 80% of wages, up to a cap of £2,500 per month (gross) as well as employer National Insurance Contributions (ER NICS) and pension contributions.
• From July, employers will have to pay employees for the hours they work if they return to work.
• From August, the level of the grant will slowly be reduced to reflect that people will be returning to work. Therefore in August 2020, the Government will pay 80% of wages, up to a cap of £2,500 per month (gross) however, employers will be responsible for employer NICS and pension contributions.
• In September, the Government will pay 70% of wages, up to a cap of £2,187.50 per month (gross) for the hours the employee does not work. Employers will pay employer NICs and pension contributions, in addition to 10% of wages (to make up to 80%) up to a cap of £2,500 per month (gross).
• In October, the Government will pay 60% of wages, up to a cap of £1,875 per month (gross) for the hours the employee does not work. Employers will pay NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

  The CJRS is due to end on 31 October 2020.

  If you need further advice or assistance on the CJRS or otherwise, then please do not hesitate to contact Partner & Head of Employment, Sarah Collier on scollier@kbl.co.uk.