The government announced that England will go into a second lockdown from Thursday 5th November. The “Coronavirus Job Retention Scheme” was due to be replaced from the start of November by the “Job Support Scheme” however the new rules mean an extension of the CJRS for November.
What support is available?
The extended CJRS will operate in the same way as before, with businesses being paid by the government to cover wage costs. The level of CJRS available will mirror the higher levels, prior to the reductions; 80% wages up to a cap of £2,500 and this will also cover employer’s NI and employer’s auto-enrolment pension contributions.
Employees can either be placed on furlough leave for their entire working pattern or employers can utilise the flexible furlough scheme, allowing for a part time furlough agreement with the employee. Worked hours will be paid by the employer as normal.
Employers can chose to either reduce employee’s pay to 80%, subject to agreement from the employee, or top-up the government contribution to pay in full.
Am I eligible?
For employers to be eligible, they must have:
- A UK bank account
- A UK registered PAYE scheme
For employees to be eligible, they must have:
- Been on payroll by midnight on 30 October 2020 (RTI submission made before this date)
- Be placed on furlough for a minimum period of 7 days
There is no requirement for the employer or employee to have utilised the earlier version of this scheme prior to this point.
If you have any questions please get in touch and we will be happy to discuss.
