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First-time application for the British Coronavirus Job Retention Scheme will close on 30 June, and employers can bring furloughed employees back to work for any amount of time and any shift pattern from 1 July. However, businesses have to pay for the actual work themself, the government’s furlough scheme applies only to the rest of the time. Learn how to count the money.

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 before 30 June.

This means that the final date by which an employer can furlough an employee for the first time was 10 June, 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.

Part-time work, full-time payment? Not that simple.

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.

From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant, employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

The timetable for changes to the scheme is set out below. 

Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours.

 

Month Employees have to pay
June
July
August

NI contributions,

pensions

  contributions.

 

September

NI contributions,

pensions

  contributions,

10% of furloughed

  employers’ wages

 

October

NI contributions,

pensions

  contributions,

20% of furloughed employers’ wages

November –

All contributions and wages

(the scheme will be over)

 

  1. There are no changes to grant levels in June.
  2. For June and July, the government will pay 80% 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.
  3. For August, the government will pay 80% 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.
  4. For September, the government will pay 70% 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% of their wages up to a cap of £2,500, for the time they are furloughed.
  5. For October, the government will pay 60% 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% of their wages up to a cap of £2,500, for the time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish, but businesses will have to pay their employees for the hours worked.

Photo: Trans.INFO

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