Furloughed workers

The Government has announced that the Job Retention Scheme will be extended for four months until the end of October. 

In June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.

In August, the government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions.

In September, the government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. 

In October, the government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.

From 1 July, employers can bring employees back to work that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.

Eligibility

Your employer is responsible for claiming through the Job Retention Scheme on your behalf and for paying you what you are entitled to. You cannot apply for the scheme yourself.

Both you and your employer must agree to put you on furlough. Once agreed your employer must confirm in writing that you have been furloughed to be eligible to claim. 

Any employer with a UK payroll and a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll before or on 19 March 2020, the day before the scheme was announced. This cut-off date has recently been extended to ensure the scheme helps as many people as possible. You can be on any type of contract, including a zero-hour contract or a temporary contract. 

How much you will receive

Your employer will get a grant to cover your regular wages, as outlined above. Firms will be eligible for the grant from the date you ceased work, from 1 March.

You will still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from your wage.

While you are on furlough

Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:

  • making money for your employer or a company linked or associated to your employer
  • providing services to your employer or a company linked or associated to your employer
  • furloughed by your employer and volunteering for them in a different role

To check if you could be covered by the Coronavirus Job Retention Scheme and to read the guidance click here

Changes to the Coronavirus Job Retention Scheme

From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours employers will need to report and claim for a minimum period of a week.

The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.

The final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.

Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June.

The full guidance on claiming for wages through the Coronavirus Job Retention Scheme can be found here