Changes to the Coronavirus Job Retention scheme

The Job Retention Scheme ends at the end of October. This is an extension from the original end date which was end of June 2020 and here are key dates and information that employers need to be aware of.

Overview

You can still furlough new staff but the scheme closes for any new entrants on 30 of June 2020. To make a claim for a grant however a 3 week furlough must have been completed prior to that so someone would need to be furloughed by 10 June 2020 to achieve this.

You need to claim for any new staff  being furloughed by 31 July 2020.

Understanding how Flexible Furlough will work

As the scheme winds down, so it becomes more flexible to support employers bringing staff back to work and also the amount employers can claim as a grant starts to reduce.  You can agree with staff that they return on a part-time basis or working different shift patterns or hours however, this can be a temporary situations

Key dates and actions

JUNE 2020

Review the needs of your workforce and make sure that you furlough anyone new by 10 June 2020.

If you are returning to the workplace, identify what staffing you will need and notify employees. Be mindful that some may not be able to come off furlough if they have child care issues or need to shield.

Think about your back up plans if staff cannot work when you need them to.

JULY 2020

You can bring employees back part-time (and pay them at their normal rate) but you can furlough them for the rest of the time. 

Until 31 July 2020 you can still claim up to 80% of their current salary up to a cap of £2,500 as well as National Insurance contributions and pension contributions.

AUGUST 2020

This is the month that employers can no longer claim a grant for National insurance and pension contributions.  Until 31 August the government will pay 80% of employee wages up to a cap of £2500 for hours not worked. 

The employer must pay for any hours worked by their staff; funding by employers for employers NIC’s and pension contributions will apply to both hours not worked and hours worked.

SEPTEMBER 2020

This month the government will pay 70% of employees wages up to a cap of £2,187.50 for hours NOT worked.  Employers will need to pay 10% of salary costs to ensure any furloughed employees (full or part time) receive 80% of their wages or up to £2,500. This is in addition to Employers’ total NIC and pension contributions.

OCTOBER 2020

This is the final month of the scheme and the government will pay 60% of your wage bill up to a cap of £1, 875 for the hours the employee does not work.  Employers must pay 20% of their wage bill to make up the total to 80% of normal salary subject to a cap of £2,500 plus employers’ total NIC and pension contributions.

REDUNDANCIES

Sadly there will be organisations that may need to restructure and make staff redundant if they can’t find alternatives such as agreeing part-time working.

If you are going to make any staff redundant be aware of the consultation period you are legally obliged to give.

Number of employees to be made redundantTiming of consultation
Less than 20 employeesWithin a reasonable time
20–99 employees30 days before first dismissal
100+ employees45 days before first dismissal

If you are making more than 20 employees redundant you must inform the Redundancy Payment Service using form HR1 before a consultation starts.  You can be fined an unlimited amount for failing to do so.

Please call or email us on 01453 548070 or at [email protected] if you would like a free consultation about your situation.

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