Vina Madhavji considers today’s announcement from the Chancellor extending the CJRS until the end of March 2021.
Flexible Furlough
The government will pay 80% of workers salary for hours not worked up to a maximum of £2500.
Workers can be brought back for any period of time and work pattern and can be furloughed full-time.
There will be no employer contribution to wages for hours not worked, but employers will be required to pay national insurance and pension contributions for hours not worked.
The workings of the scheme, and extent of employer contributions, will be reviewed in January 2021.
Employee Eligibility
Employees on the payroll on 30th October 2020 can be furloughed and there is no requirement for an employee to have been previously registered under the scheme.
A RTS ( real time submission) to HMRC, notifying a payment of earnings for the relevant employee, must have been made in the period from 20th March 2020 to 30th October 2020.
Re-employment and furlough possible for those made redundant on or after 24.09.2020
Those who were employed and on the payroll on 23rd September 2020, and who then were made redundant or who stopped working from 24th September 2020 onwards, can be re-employed and placed on furlough.
An RTI, notifying a payment of earnings, must have been made for such employees in the period from 20th March 2020 to 23rd September 2020.
Further guidance can be found on gov.uk and we will keep you updated as further information becomes available.
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