The Coronavirus Job Retention Scheme has been extended until 30 April 2021. Our expert Employment Law solicitors explain what this means for employers. For Frequently Asked Questions about the original Coronavirus Job Retention Scheme, click here.
This page was updated on 18 February 2021
The new extended Coronavirus Job Retention Scheme applies to workers and employees who were on payroll by 30 October 2020.
If they were dismissed or their employment ended after 23 September 2020 they can be reinstated to claim this furlough grant.
The scheme was due to end on 31 October but was extended so that the level of the grant was the same as in August. Flexible working is allowed. For the hours the Employee does not work employers only have to make NI and pension contributions.
Under the extended scheme, the first claims can be made from 8am on Wednesday 11 November 2020, and payments are anticipated 6 working days after the first claims.
The new extended scheme from 1 November merely requires that you need to claim for a minimum of 7 calendar days and employees must have been on payroll on 30 October 2020. If they are dismissed or have left after the 23 September then they can be reinstated to claim this furlough grant.
Yes, as long as they were on payroll on 23 September 2020.
The new extended furlough scheme will now run until 30 April 2021.
This is not possible any longer. The new guidance states that for the period 1 November – 1 December 2020, claims may be made if the employee is serving statutory notice only. So if your employee has 3 months contractual notice but has only worked for you for 4 years, then only 4 weeks can be subsidised by the furlough grant.
For any period you claim on or after 1 December you cannot claim for any period your employee is serving either statutory or contractual notice. This includes people serving notice of retirement or resigning.
No, this has been withdrawn. It is not clear whether or not it will be reintroduced.
For claim periods from December 2020 HMRC will publish the name of each employer using the scheme and a reasonable indication of the amount claimed.
We recommend issuing an agreement or letter setting out the terms of the extended or new furlough arrangements. Although the employee does not have to confirm their acceptance, it is a good idea to obtain this in writing. This will help all parties understand the new arrangements and reduces the risk of claims at a later date.
No, from 1 November onwards there is no maximum number of employees that you can claim for under the scheme. The previous limit which had applied from 1 July until 31 October has been removed.
If it is clear that you are going to have to restructure your business and or make provision for the phasing out and end of the furlough scheme then alternatives include:
Salary sacrifice where everyone gives up a percentage of their salary for a defined period. This can be offered as an alternative to redundancies and there must to be the employee’s agreement to this.
Part time working
Again, this can be offered as an alternative to redundancy and you need the employees agreement to this.
Redundancy / restructuring
Many employers are already gearing up to restructure their business so that the people they are making redundant can be served notice while they are still on full 80% furlough pay.
We would recommend that any notice is paid at ‘normal renumeration’ if not topping up the 80%. This is unless the employee agrees to accept the furlough pay in
stead of their notice pay. The redundancy process must be fair and include a fair selection process. Accrued holiday will also need to be paid.
You can place an employee on furlough if they have caring responsibilities, as long as they have been on the payroll from 30 October 2020 or before.
Government advice for people who are told to shield due to being clinically extremely vulnerable is to work from home if possible. If they cannot work from home then they should not attend work. Employers can place a shielding employee on furlough as long as they have been on the payroll from 30 October 2020 or before.
If you wish to furlough an employee who is currently off sick for business reasons, you are entitled to do so. If they are already on sick pay you would stop this to put them on furlough pay as long as they were on payroll on or before 30 October 2020.
Yes. You will calculate her furlough pay based on her salary not her statutory maternity benefit and you can pay her 80% if she agrees.
Annual leave can be taken while she is on furlough. You will be able to claim 80% of her salary from HMRC to help cover the cost of her annual leave but she must receive full holiday pay.