Auteurs

Kathryn Clapp

Senior professional support lawyer

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Paul Callaghan

Associé

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Helen Farr

Associé

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Sean Nesbitt

Associé

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Auteurs

Kathryn Clapp

Senior professional support lawyer

Read More

Paul Callaghan

Associé

Read More

Helen Farr

Associé

Read More

Sean Nesbitt

Associé

Read More

11 novembre 2020

Law at Work - November 2020 – 1 de 9 Publications

Government guidance sheds some light on extended furlough scheme

  • Quick read

From 1 November the Coronavirus Job Retention Scheme (CJRS) was extended until 31 March 2021 to support businesses whose operations have been affected by coronavirus (COVID-19). Both flexible and full-time furloughing are allowed. The scheme operates as it did during August, with the Government paying 80% of furloughed employees wages up to a cap of £2,500. The Government will review the scheme in January 2021.

From 1 November employers can claim for individuals employed by them on 30 October 2020 and payroll information submitted to HMRC before that date. Others who benefit are those employed on 23 September 2020 but were then made redundant or whose fixed term contracts ended after that date. They can be re-employed and furloughed.

The Government has now published guidance and a Treasury Direction, which clarify that:

  • there is no maximum number of employees that can be claimed for from 1 November 2020
  • only retrospective agreements with employees for full or flexible furlough put in place up to and including the 13 November 2020 can be used for making a claim
  • employees who are unable to work either because they are clinically extremely vulnerable and following public health guidance, or have caring responsibilities resulting from coronavirus can benefit from the CJRS
  • from December 2020, HMRC will publish employer names and for companies and LLPs, the company registration in respect of claim periods from 1 December 2020 onwards.

Can employers claim for notice period monies?

Currently employers can claim under the CJRS for employees serving notice. However, the Treasury Direction states that for claim periods starting on or after 1 December 2020, an employer cannot claim under the CJRS for any days on or after 1 December 2020 during which the employee was serving a contractual or statutory notice period for the employer. It will publish further guidance in late November 2020.

A reminder of features of the extended CJRS

  • It will run from 1 November to 31 March 2021.
  • There is no requirement to have previously used the CJRS.
  • Employers of any size with a UK bank account and UK PAYE schemes can claim and it is available for employees, including foreign nationals.
  • Employees can be furloughed full time or on a part time basis, depending on business need subject to a minimum furlough period of seven calendar days.
  • Employers must agree any working arrangements with employees.
  • The Government will pay 80% of employees' wages up to a cap of £2,500 for hours not worked with employers paying employer NICs and pension contributions and can choose to top up wages at their own expense.

Making claims under the CJRS

Employers must submit or change CJRS claims under the old scheme which ran to 31 October 2020 by 30 November. For the new scheme employers will be able to claim from 11 November 2020. Claims relating to November 2020 must be made by 14 December 2020. Claims relating to each subsequent month should be submitted by Day 14 of the following month, to ensure prompt claims following the end of the month which is the subject of the claim.

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