Updates also confirm that employers will be expected to contribute more towards employee support as government support is gradually withdrawn
The government has updated guidance on the Coronavirus Job Retention Scheme (CJRS) to take account of new furlough rules being introduced next month.
Following the Chancellor Rishi Sunak's written statement on 3 June 2020 on the future of the CJRS and Self-Employment Income Support Scheme, the government has provided further details of the eligibility conditions for CJRS support for employers who qualify to furlough employees from 1 July 2020.
In particular, in Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme, the government advises that employers will only be able to furlough employees for the first time from 1 July 2020 if they have already furloughed the employee for at least three consecutive weeks between 1 March and 30 June 2020.
In addition, the updated COVID-19 guidance advises that, from 1 July 2020 -
- employers will be able to flexibly furlough employees so that employees can be brought back to work for any amount of time, and any work pattern;
- a furlough grant can be claimed for the hours the flexibly furloughed employees do not work, compared to the hours they would normally have worked in that period;
- the number of employees claimed for in any single claim period cannot exceed the maximum number of employees claimed for under any claim ending by 30 June;
- flexible furlough agreements can last any amount of time and employees can enter into a flexible furlough agreement more than once; and
- employers can continue to fully furlough staff beyond 1 July, but where a previously furloughed employee starts a new furlough period before 1 July, this furlough period must be for a minimum of three consecutive weeks, regardless of whether the three consecutive week minimum period ends before or after 1 July.
In relation to the timetable for the gradual withdrawal of support for employers that was outlined by Mr Sunak, the government provides further details in Changes to the Coronavirus Job Retention Scheme, advising that -
- for June and July, the government will pay 80 per cent of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work;
- for August, the government will pay 80 per cent of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough;
- for September, the government will pay 70 per cent of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed; and
- for October, the government will pay 60 per cent of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80 per cent of their wages up to a cap of £2,500, for time they are furloughed.
In addition, the government has updated a range of guidance pages aimed at employers, to take account of the changes from 1 July 2020, including -
Calculating how much you can claim using the Coronavirus Job Retention Scheme | Claiming wages through the Coronavirus Job Retention Scheme | Reporting employees' wages to HMRC when you've claimed through the Coronavirus Job Retention Scheme | Steps to take before calculating claims using the Coronavirus Job Retention Scheme | Examples to help calculate employees' wages.