Help With Furlough In Your Business
On 3rd March 21 the government announced the Coronavirus Job Retention Scheme (CJRS) has been extended until 30th September 2021. The government have released guidance for extended CJRS, further updates will be issued by the government as the situation develops. The March 2021 budget is aimed at protecting jobs and the livelihoods of the British people.
There is no change for employees who will continue to receive 80% of their wages, subject to the cap. It is however important to note that the scheme will not operate in the same way from July when employers must make contributions to employees pay. The overall furlough payment will continue at 80%; with the option for employers to top up employees pay. However, from 1st July 2021; employers will contribute 10% and 70% will be paid by the government through the furlough grant and from 1st August the employer contribution will rise to 20% with 60% being paid by the government through the furlough grant.
Employees may be placed on full furlough or flexible furlough. Employers can agree working arrangements with the employees as previously in the CJRS. Flexible furlough arrangement may continue, this is where employees work some hours. Alternatively, full furlough may apply. Employees can be on any type of employment contract. Employees who are shielding or need to stay at home with someone who is shielding can be furloughed unless they can work from home.
The country is slowly easing out of the third lockdown,the road map is based in data. . HMRC guidance outlines employers can, not must, furlough employees if they are affected by coronavirus or any other conditions. Other conditions refer to if the employee is unable to work from home or are working reduced hours because:
- The employee is clinically extremely vulnerable or at the highest risk of severe illness from coronavirus and following public health advice.
- Has caring responsibilities resulting from coronavirus. Therefore parents and guardians who are caring for children who are at home as a result of school and childcare facilities closing or caring for vulnerable people in their household.
Employers must continue to pay employers national insurance and pension contributions. The official guidance states businesses will need to:
- designate affected employees as ‘furloughed workers,’ agree and notify employees in writing of this change – changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation
- submit information to HMRC about the employees that have been furloughed and their earnings through the online portal
*Please read these FAQs in conjunction with the official guidance for employers and employees. The following material is provided only as a guide and is not legal advice. You are strongly advised to seek advice from a qualified legal practitioner regarding your individual circumstances.
Business Advice Centre’s subscribers can access support through the employment telephone advice line, when logged in.
Full details are available on the Gov UK website – https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme#interaction-with-other-coronavirus-job-schemes
To see the FAQ’s, subscribers should be logged in
