This page provides guidance on the Coronavirus Job Retention Scheme, commonly known as the furlough scheme.
Changes to the Coronavirus Job Retention Scheme (CJRS)
From July 1 2021, the level of grant available to employers through the CJRS will be reduced and you will be asked to contribute towards the cost of your furloughed employees’ wages. To be eligible for the grant you must continue to pay your furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough.
For more information click here
Coronavirus Job Retention Scheme Extension Now Open
You are now able to submit new Coronavirus Job Retention (Furlough) Scheme applications. For more on eligibility, what documents / information you’ll need and how to apply click here.
The Chancellor of the Exchequer, Rishi Sunak has announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until the end of March 2021, with employees receiving 80% of their current salary for hours not worked.
He said that the Government intends to keep the national lockdown restrictions in England until 2 December, but stated that the economic impact of these measures lasts longer than the duration of any restrictions imposed. He said that given the significant uncertainty and the need to give businesses and employees security, it was right for the Government to go further in providing economic support.
For the news story click here.
For the policy paper relating to scheme extension click here
Full guidance for the CJRS extension can be found here.
It has been announced that the Coronavirus Job Retention Scheme (CJRS) would be extended for a further month. Key information is:
Further details can be found here.
N.B. Furloughed employees must go home and not work throughout the period of furlough. Employers should discuss the furlough with their staff and make any changes to the employment contract by agreement. See below for further details and for a sample letter which can be used. While the employee is on furlough employment continues with all other associated terms and conditions of service.
Placing Employees on Furlough – Keeping a Record – Varying Terms of Service
The terms of the Coronavirus Job Retention Scheme include that to be eligible for subsidy an employer should write to every employee to be placed on furlough, confirming that they have been furloughed, and keep a record of the communication.
For most employees this change will be a variation to their terms of service, which due to the emergency circumstances and no other beneficial alternative, it is very likely that an employee would agree to. It will be prudent for employers to obtain a record of the an employee’s agreement.
When furlough ceases the employee’s terms of service will be varied again, perhaps returning to the pre furlough position, perhaps to something different, even to the start of a redundancy procedure. It will be helpful later if this uncertainty is understood by employees at the time of furlough.
An example letter to employees is available here.
This letter is generic and attempts to give a reasonable start point for a communication to employees which meets the above objectives. Users should adapt the draft letter to their particular circumstances.
The reference to not undertaking work for any other employer whilst on furlough is not strictly correct. However, within our industry sub sector a number of employees have undertaken regular additional work away from their primary employer, this reference is intended to bring any instances to light to their main employer to avoid problems at the time of notification/submission to HMRC when claims are made.
This information is intended only as ‘general’ information, it does not constitute advice for the purposes of any individual case and cannot be a substitute for specific professional advice based on the circumstances of any such case. The NASC/author cannot accept any liability for any loss or damage, however arising, to any person or organisation using this information/document.
If you have further queries please email firstname.lastname@example.org including your telephone number.
Past information –
The CJRS was originally announced in March 2020 and launched for applications in April 2020. From 1st July until 31st October the scheme was closed to new entrants so only employees furloughed before the 10th June were eligible for claims, however part time furlough was introduced so employees could return to work part time and claims could be made on the CJRS for normal hours not worked.
From the 1st August the level of monthly was progressively reduced as follows:
The Coronavirus Job Retention Bonus was announced in July 2020 but has now been withdrawn following the extension of the CJRS. This was to be be a one-off payment of £1,000 to employers that had used the Coronavirus Job Retention Scheme (CJRS) for each furloughed employee who remained continuously employed until 31 January 2021. For more information click here.
The Jobs Support Scheme (JSS) was announced as part of the Winter Economy Plan on September 24 2020 and subsequently amended.
The new scheme was to operate for 6 months from November 2020 but since the CJRS scheme has been extended this scheme has been been delayed. The key features of the scheme were:
Employers could make use of both the Jobs Support Scheme and the Jobs Retention Bonus (see below).
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