CJRS Grant Extended - what are the new Furloughing and Flexible Furlough rates?
The Government has extended the CJRS – Coronavirus Job Retention Scheme from 1 November, 2020 to end of March 2021. The JSS – Job Support Scheme is currently on hold.
How will it help employers & what does it entail?
CJRS Grant Extended – what are the new Furloughing and Flexible Furlough rates?
The UK Lockdown is effective as of Thursday 5 November, 2020. After several revisions of the JSS – Job Support Scheme, Rishi Sunak. Chancellor of the Exchequer has put the JSS on hold, due to the Lockdown and the CJRS – Coronavirus Job Retention Scheme furloughing has been extended to March, 2021 with a review in January, 2021. So, what are the new rates, & eligibility qualification criteria to receive payments?
The UK government will be paying 80% of wages for furloughed employees’ hours where they do not work, up to a cap of £2,500 for periods from 1 November, 2020 to 31 January, 2021 which is more generous than September and October, given employers were having to previously contribute an additional 10% pay in September and 20% in October, 2020.
Employers will need to pay all employer National Insurance Contributions – NICs, and pension contributions. An employer can top up their furloughed employees’ wages beyond the 80% paid by the UK government for hours unworked, however, it’s discretionary.
There’s no gap in support between the previously announced end date of CJRS and this extension as long as the eligibility criteria is met.
How does it work?
Flexibility is available for employees to work on a part-time basis and furlough for the rest of their usual working hours or furlough them full-time based on the needs of the business. Employers will have to pay their wages in full for any hours they work in addition to all employer National Insurance and employer pension contributions.
Claim can be made shortly before, during or after running payroll. There will be a short period initially when the online claims service will be closed while systems are updated, and claim can be made in arrears/ retrospectively for that period.
The Government will be providing further clarity shortly.
Eligibility criteria
Employees who were on PAYE payroll on 30 October 2020 with PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for the employee would be eligible.
Therefore, if employees were on payroll on 23 September 2020 (i.e. notified to HMRC on an RTI submission on or before 23 September) and were made redundant or stopped working for you afterwards, they can also qualify for the scheme if they are re-employed.
There is no prerequisite for the employee or the employer to have utilised CJRS before. Further details on eligibility will be provided in the next few days.
What you need to do now
- Check if your employees are eligible for the scheme, based on the information above.
- Agreeing working hours with your employees, so they know if they are furloughed fully or part-time during November.
- Records need to be retained to support the amount of CJRS grant you claim, for HMRC checks.
Further support available
There is also further support provided by the Government to business owners amounting to £3,000 per month when they are forced to closed under the Local Restriction Grants.
Homeowners, mortgage holidays were previously set to close end of October, however, this is now available for 6 months & is not supposed to impair credit ratings.
Please note, that this CJRS Government Grant has had several amendments, therefore it is subject to change. Experts, ELHR Ltd. are happy to assist should you require further clarity and assistance. Please call us now on 01788 432077 for an initial free consultation.
Mental Wellness and Physical Health
To be COVID-19 safe, you need to follow government guidelines to make working at home, or physically at work safe.
However, employers need to consider the management of employees emotional wellbeing in line with these changes. Fatigue from living within strict cleanliness routines and anxiety, some in relation to money worries and concerns regarding the new world coping with the unprecedented pandemic are very real threats to your company through the reduction of motivation and efficiency.
Using the approaches of ELHR to listen and understand the perspectives of your employees, will enable your team to improve productivity and allow your company to have the best possible chance of surviving financially.
What can you do to prepare?
Remember that it is important that you take the time to evaluate your duty of care as employers in relation to health & safety, mental, wellbeing and physical health of your staff working from home, or at work.
Risk assessments & taking guidance at difficult times is crucial. ELHR Ltd. are here to help and can assist in pointing you in the right direction.
How can we help?
From employment contracts that provide flexibility during uncertain times, advising on continuous employment law legislative changes, restrictive covenants protecting your business, to onboarding and performance management practices, our goal is to create an atmosphere that enables successful recruitment and retention of staff due to high morale and wellbeing, building on the lessons learned through 2020.
Our bespoke Human Resources Consultancy is not formulated as a package. We listen, understand and use our expertise to create a pathway for the companies we are proud to work with.
At ELHR, we work with you to create a culture that limits the risk of litigation through staff engagement surveys, change management during uncertain times, and succession planning. Looking to prepare for problems in order to avoid running into them.
Whether you need support for a set time frame or project, or a longer-term arrangement, we have the skills and capacity to make a real and measurable difference to prepare you for the future.
Contact us via our online form, or give us a call for your initial free consultation and we can discuss your specific issues you’re facing as an employee, or employer.
