Following the start of the second National Lockdown, the government announced an extension to the Coronavirus Job Retention Scheme which had been due to end on 31 October 2020.
The scheme will now remain open until 31 March 2021 for all parts of the UK, with a review in January 2021.
From November 2020 to January 2021 employers will be able to claim the full 80% of furloughed employee wages up to a cap of £2,500 per month for the time they are furloughed. Employees can still be on ‘flexible furlough’ with the cap being proportionate to the hours an employee has not worked. The employer can still top up an employee’s furlough pay at their own cost too.
The employer will continue to pay the Employers NIC and Employers Pension contributions.
From 1 November employers can claim for employees who were employed and on their PAYE payroll on 30 October 2020. Employees do not need to have been furloughed under the CJRS previously, and employers do not need to have used the scheme prior to 1 November to be eligible.
Employers must confirm with their employees in writing that they have been furloughed or flexibly furloughed. For claims effective from 1 November 2020 this must be done by 13 November 2020.
Claims must be submitted by the 14th day of the following month, so claims relating to November 2020 must be made by 14 December 2020. The closing date for claims up to and including 31 October remains 30 November 2020.
The launch of the Job Support Scheme has been postponed in light of these developments, and the Job Retention Bonus will now not be paid in February 2020. An alternative retention incentive will be put in place at the appropriate time.
