Coronavirus Job Retention Scheme (CJRS) – change to end date
Extension to Coronavirus Job Retention Scheme
In response to the Coronavirus outbreak, the UK Government announced a series of measures to support businesses and their employees.
One of those measures is the CJRS which allows employers to claim 80% of the wages of their employees (up to a maximum of £2,500 per month per employee) who they have furloughed.
The Scheme was originally intended to run until 31 May 2020 although the Government stated that it would review and extend this if necessary.
The Treasury announced on 17 April 2020 that the Scheme had indeed been extended to 30 June 2020.
This action has been taken because otherwise businesses who may have to consider redundancies of 100 or more employees would have had to have commenced the statutory 45 days’ collective consultation period on 18 April 2020 in order to make redundancies by 31 May. It is not necessarily an indication of the extension of the lockdown measures past the current three week extension.
What employers should do
Employers who have already furloughed employees with an end date of 31 May 2020 will need to write to their employees again prior to 31 May if they wish to gain their agreement to extend the furlough period past that date.
Employers do not have to make that decision now; the lockdown measures have only currently been extended by three weeks so there is a possibility of businesses returning to some form of operation prior to 30 June, even if not in their entirety.
Employers who are gaining agreement on a three-weekly basis can continue to do so.
The other CJRS eligibility criteria will continue to apply. All implications of furloughing should continue to be considered in the round and appropriate advice taken.
Find out more
If you have any queries or would like to discuss how we can support you around CJRS, please contact:
Nigel Morris, Employment Tax Director - email@example.com / 07718 340 634
Richard Maitland, Employment Tax Partner - firstname.lastname@example.org / 07711 373 584
Our HR Solutions team - HRSolutions@mhllp.co.uk