Coming out of lockdown and the CJRS
As we start to see a gradual emergence from our COVID-19 lockdown and the government starts to focus on how it is going to help kick-start the economy and get people working again, they continue to try and help many workers with their Coronavirus Job Retention Scheme (CJRS).
As a reminder, under the scheme, any employer can obtain a grant to cover 80% of the salary of employees and PAYE workers, up to a total of £2,500 per month for each retained employee, plus the associated employer’s National Insurance contributions (Ers NICs) and minimum automatic enrolment employer pension contributions on the reduced salary.
As we discussed in our previous update about this, we took the decision to stand by our employees and do the right thing to support those in need of help as much as we could by calculating the average pay based on both National Minimum Wage AND additional taxable pay. We did this out of our own funds without waiting to receive the grant money before issuing the furlough payments as we wanted to get the help to where it was needed most without delay.
Since then, there has been a further commitment and some amendments to the scheme announced by the Chancellor. As it stands we are awaiting the guidance on the updates which are expected to be published on the 12th of June. In the meantime, here are the proposed amendments and important dates to be aware of:
- June and July: the grant facility remains as it currently is – employers can claim back 80% of average pay to a maximum of £2,500 per month, plus the employers national insurance and pension contributions
- August: employers will no longer be able to claim back the costs of employers national insurance and pension contributions
- September: Along with no longer claiming back the ERS NIC and pension contributions, employers will be only be able to reclaim 70% of the average pay but/and will have to top up the 10% of the furlough pay of their workers
- October – As in September but can only claim 60% of the average pay and top up the 20% of the furlough pay of/for their workers
- November – CJRS closes
Along with the introduction of flexible furloughing which may commence from the 01st of July to enable furloughed employees to engage in part-time work, a key point to note is the scheme will close for new entrants on the 30th of June. From the 01st of July, the scheme will only be available to employers already using the scheme for those workers who have been previously furloughed.
It is important to note that because of the minimum 3 week period required for an employee to be furloughed, the ACTUAL date for new entrants to be furloughed is in fact the 10th of June. After this date, no employer will be able to utilise the scheme for an employee even if they were to meet all the other eligibility criteria.
Whilst we await the release of the guidance on the 12th of June to see what this means for us and our employees, we remain committed to the scheme and doing the right thing / assisting the most where possible.
If you were on a live assignment which has be interrupted due to the coronavirus and you believe you may be eligible to be furloughed, please let us know ASAP by emailing email@example.com – remember, if we don’t hear from by the 10th of June, after this point we will not be able to furlough any new entrants.
From all the team at ForeTwo, as ever – keep safe and well.