On 5 November 2020, the Chancellor Rishi Sunak announced that the Coronavirus Job Retention Scheme (CJRS) will be extended until 31 March 2021. The Job Support Scheme, due to come into effect on 1 November 2020, and the Job Retention Bonus have now been put on hold.

From 1 November 2020 employees will receive 80% of their usual salary for hours not worked (up to the cap of £2,500). Employers will pay National Insurance contributions and pension contributions. The extended CJRS will be reviewed in January 2021 to decide whether employers should increase their contribution during February and March 2021.

Full guidance is due to be published on 10 November 2020 but key points include:

  • Employers can claim under the CJRS even if they had not previously furloughed employees
  • Employers can continue to place employees on full or flexible furlough
  • Employees who were previously furloughed will continue to have their reference pay and hours based on the existing furlough calculations
  • Employees who were not previously furloughed will have a different pay and hours reference period
    • For employees on fixed wages, pay is based on 80% of wages payable in the last pay period ending on or before 30 October 2020
    • For employees on variable wages, pay is based on 80% of the average payable between either the start date of their employment or 6 April 2020 (whichever is later) and the day before their furlough period begins under the extended CJRS
  • Employees can (but do not have to) be furloughed if they are shielding, or if they need to stay at home with someone else who is shielding
  • Employees who were made redundant or stopped working for their employer after 23 September 2020 can be re-employed and claimed for provided they were on the payroll on 23 September 2020
  • Furlough agreements made retrospectively that have effect from 1 November 2020 will be valid. However, only retrospective agreements put in place up to and including 13 November 2020 may be relied on for the purposes of a CJRS claim
  • Claims can be made from 8am on 11 November 2020
  • Claims made for November must be submitted to HMRC by no later than 14 December 2020
  • Claims relating to each subsequent month should be submitted by the 14th day of the following month

Topics