Coronavirus Job Retention Scheme & Furloughing Employees
Part time working
You will be able from 1st July to be able to bring workers back on a part time basis and contiue to claim on the furlough scheme for the hours they do not work.
You need to agree the working hours / patterns with your employees and you will pay them for any hours worked. Any hours not worked you may then claim the relevant % on the furlough scheme as set out below.
Scheme from 1st August 2020
With effect from 1st August you will no longer be able to claim your Employers NI or basic pension contributions.
The following % will apply for claims:
1st August - 31st August - 80% of salary up to a maximum of £2500
1st September - 30th September - 70% of salary up to a maximum of £2187.50 and you must top up the salary by 10% up to a maximum of £2500
1st October - 31st October - 60% of salary up to a maximum of £1875 and you must top up the salary by 20% up to a maximum of £2500.
The scheme will end completely on 31st October.
Scheme up to 31st July 2020
Here is our guide on everything you need to know about the CJRS which outlines the key points to the scheme and the answers to a variety of questions we have been getting asked. Download your copy here
The CJRS was announced in an attempt to help businesses retain staff that they may otherwise have to made redundant or lay off without pay.
The outline of the scheme can be found here
In essence, if your employees were employed and on your payroll where a RTI submission was made on or before 19th March 2020 then you may be able to change their status to being furloughed and claim 80% of their wage costs up to a maximum of £2500 per month under the scheme.
The first step to ensure you can take advantage of this is to ensure that you either have the contractual right to lay off workers already built into your contract of employment or you have gained the consent of your employees to do this. We are happy to review any existing contractual documents for you to confirm if you are unsure, please just email these to email@example.com
If you do not have the legal right built into your contract then you can gain consent by issuing a variance to your employees current contract which they would sign and return in acceptance. A template for you to use can be downloaded here
Once you have confirmed that you have the legal right or agreement for your employee, then you must serve the employee notice when you want to change their status to furlough and we have drafted a suggested template you can use for this here. You are required to keep this written notice for 5 years.
We have been asked by a number of Companies who initially furloughed staff and paid the 20% to top up their wages if this can be changed to just the 80% as the longer this situation is continuing for, the harder it is for them to fund the difference. We have therefore drafted a notification letter to issue to your staff if this is the case which you can download here
Should you wish for an employee to return to work, here is also a template letter you can use to confrm their return.
The portal for claims is now open and can be accessed here along with the step by step Guidance for making claims here