By Fiona Gorry, Senior Solicitor.
On Friday 29 May 2020, the Chancellor of the Exchequer set out several key changes to the CJRS, which are due to be implemented gradually over the next few months until the Scheme closes altogether on 31 October 2020.
Briefly, the main changes can be summarised as follows:
- 10 June 2020 will be the last day employers can place employees on furlough if those employees have not been furloughed previously;
- From 1 July 2020, “flexible furloughing” will be allowed, whereby employers can agree with employees to bring them back to work part-time (on potentially any hours and/or shift pattern the employer needs) whilst still keeping them on furlough for the remainder of their weekly contractual hours;
- From 1 August 2020, employers will no longer be able to reclaim employer’s National Insurance and pension contributions in respect of any employees remaining on furlough;
- From 1 September 2020, the government will only reimburse 70% of a furloughed employee’s salary (up to a maximum of £2,190). Employers will be required to top this up to 80% (or more, depending on what has previously been agreed with the employee);
- From 1 October 2020, the government will only reimburse 60% of salary (up to a maximum of £1,875), with employers having to continue to top up to 80% (or more, as above).
Further guidance from the government in respect of the above changes is due to be published on 12 June 2020 at which point we will, of course, provide a full brief on the revised scheme to retained clients.