Changes to the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme has been extended until the end of September 2021.

This is to support businesses and individuals who will be affected by Coronavirus.

The UK Government will pay employees 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month until the end of June 2021.

In July the government will continue to pay 70% of employees wages, this will be capped at £2,187.50. This will then reduce to 60% of employees wages for August & September capped at £1,875.

What is the employer's responsibility?

Employers will have to continue to pay furloughed employees 80% of their usual wages for the hours they have not worked (capped at £2500 per month). They can choose to top up this wage but this is not required.

For pay periods between July - September employers will need to fund the difference between this and the CJRS grants themselves.

Employers will also be responsible for paying the associated Employer National Insurance contributions and pension contributions on subsidised furlough pay.

Which employers can claim?

Even if you haven't previously claimed the CRJS, you can still make a claim regardless of whether your business is currently open or closed.

Any eligible business, charity, recruitment agency or public authority can make a claim.

Which employees are eligible?

If you want to claim for periods ending on 30th April 2021, employees must have been employed on or before 30th October 2020.

A PAYE Real Time Information (RTI) submission must have been made to HMRC between 20th March 2020 and 30th October 2020, notifying a payment of earnings for that employee.

You do not need to have previously claimed for an employee before the 30th October 2020 to claim for periods from 1 November 2020.

If you want to claim for periods starting on or after 1st May 2021, your employee must have been employed by 2nd March 2021. A PAYE Real Time Information (RTI) submission must have been made to HMRC between 20th March 2020 and 2nd March 2021, notifying a payment of earnings for that employee.

You do not need to have previously claimed for an employee before the 2nd March 2021 to claim for periods from starting on or after 1st May 2021.

Flexible furlough is another option for employers which means that you can use this scheme on a full or part-time basis, varying the hours worked in agreement with your employee. This applies to all employees, regardless of their employment contract type and employees on all categories of visa.

To check whether employees are eligible and work out how much you can claim, go to GOV.UK and search 'Job Retention Scheme'. Here you can find the CJRS Calculator and examples of claims.

Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme

Employee sickness and absence

If you have employees who are shielding or those who have caring responsibilities, these employees will be eligible for furlough. This includes those who need to care for children and people who need to remain at home with another person who is shielding.

This scheme is not intended for short term sicknesses and absences. However, if you want to furlough employees for business reasons and they are currently off sick, you are eligible to do so.

If your furloughed employee becomes ill, they must at least be paid Statutory Sick Pay. It will be at your discretion to decide whether or not you should move these employees onto SSP or to keep them on furlough, at their furloughed rate.

When can I claim?

March claims can now be submitted, this must be done by 14th April.

The claim can be made by employers before, during or after they process their payroll. To avoid amending a claim at a later date, claims should be made when employers are sure of the exact number of hours worked by employees.

Monthly Claims Deadlines

  • 14 April 2021 – final date to submit claims for March 2021 by 11:59pm
  • 14 May 2021 – final date to submit claims for April 2021 by 11:59pm
  • 14 June 2021 – final date to submit claims for May 2021 by 11:59pm
  • 14 July 2021 – final date to submit claims for June 2021 by 11:59pm
  • 16 August 2021 – final date to submit claims for July 2021 by 11:59pm
  • 14 September 2021 – final date to submit claims for August 2021 by 11:59pm
  • 14 October 2021 – final date to submit claims for September 2021 by 11:59pm

How to claim the CJRS