The rules on the Job Retention Scheme are changing
The aim of this note is to provide you with an update on the UK Job Retention Scheme and follows various announcements and changes made by the UK Government. The rules that are planned to operate each month are, in summary as follows.
Job Retention Scheme – Rules per month
June
- UK Government will pay 80% of furloughed wages up to £2,500
- UK Government will pay Employer’s National Insurance and Employer’s pension contributions
- Employer does not have to pay anything but has the option to top up to 100% of wages
July
- The scheme will be closed to new entrants (see note below)
- From 1 July there is an option of flexible working (see note below)
- UK Government will pay 80% of furloughed wages up to £2,500
- UK Government will pay Employer’s National Insurance and Employer’s pension contributions
- Employer does not have to pay anything but has the option to top up to 100% of wages
August
- The scheme will remain closed to new entrants
- There is an option of flexible working (see note below)
- UK Government will pay 80% of furloughed wages up to £2,500
- Employer has to pay Employer’s National Insurance and Employer’s pension contributions
- Employer does not have to pay anything but has the option to top up to 100% of wages
September
- The scheme will remain closed to new entrants
- There is an option of flexible working (see note below)
- UK Government will pay 70% of furloughed wages up to £2,187.50
- Employer has to pay Employer’s National Insurance and Employer’s pension contributions
- Employer has to pay 10% of furloughed wages to bring the payment up to £2,500
- Employer has the option to top up to 100% of wages
October
- The scheme will remain closed to new entrants
- There is an option of flexible working (see note below)
- UK Government will pay 60% of furloughed wages up to £1,875
- Employer has to pay Employer’s National Insurance and Employer’s pension contributions
- Employer has to pay 20% of furloughed wages to bring the payment up to £2,500
- Employer has the option to top up to 100% of wages
- The scheme will end 31 October 20
Closed to New entrants from 30 June (or 10 June, depending on how you look at it)
- The scheme will close to New Entrants from 30 June
- This means that the latest date by which any new employee can start furlough is 10 June
- The number of employees an employer can claim for in any claim period cannot exceed the maximum number they have claimed for under any previous claim
- Employers will be able to make their first claim under the new scheme from 1 July (this seems to contradict the point above, but it is what the Government has said)
Flexible working
- Up to 30 June employees on furlough are not permitted to do any work whatsoever
- From 1 July flexible working will be permitted
- The employer pays in full for the hours worked
- The government will pay 80% of wages (up to the pro-rated cap) for the hours the employee does not work
You can read about the proposals in more detail here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/888764/Factsheet_for_SEISS_and_CJRS_schemes.pdf.
Please call a member of the team if you need more information.
The rules on the Job Retention Scheme are changing The […]