The Coronavirus Job Retention Scheme (“CJRS”) has been extended until the end of November 2020 in line with the new national restrictions with the replacement Job Support Scheme also being delayed.
The level of the CJRS grant will be the same as that available in August with the Government paying 80% of employee wages up to a cap of £2,500 for employee hours not worked. Employers will pay the associated employer national insurance and pension contributions.
Full and flexible furloughing will continue to be available and employers will continue to have the option to top up employee wages at their own cost should they wish to do so.
As with the previous CJRS, employers can claim the grant for the hours their employees do not work calculated by reference to their usual hours worked in a claim period. The calculations for this will broadly follow the same methodology as currently under the CJRS.
To be eligible for the extended CJRS, employees must be on the payroll by 30 October 2020. Neither the employer nor the employee needs to have previously used the CJRS.
Employers will be able to agree working arrangements with employees and employers should consider the related HR matters and ensure terms are agreed with employees in writing.
The Government will confirm shortly when claims under the extended CJRS can be made in respect of employee wage costs during November. It is expected that the extended scheme will allow businesses to be paid upfront to cover wages costs.
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