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This article was published on June 4th, 2020
As you may be aware, the Chancellor has announced changes to the government’s plans regarding the Coronavirus Job Retention Scheme.
In the near future, the Job Retention Scheme will now be geared towards supporting businesses in sending staff back to work until it ends on 31 October 2020.
As employers, you will be able to put staff on part-time furlough, and claiming the CJRS grant for a chunk of their salary.
The aim of the government is to reduce its contribution over the remaining months of the scheme (August – October) with a corresponding increase in contribution from the employer:
However, it is crucially important to note that you will only be able to claim going forward if you have previously claimed under the pre-July 1st scheme.
Furthermore, as there is a three-week minimum furlough requirement under the current rules, any new period of furlough leave must have started by 10 June 2020 to be complete when the current scheme ends on 30 June. This means the furlough scheme is closed to new entrants after 30 June 2020.
The chancellor also announced the introduction of a new limit on the number of staff who can be included on a claim.
This is proposed to be based on the maximum members of staff included in any single pre-July 1st claim.
He also confirmed that from 1 August the grant will no longer cover the cost of employers’ National Insurance nor pension contributions with employers expected to cover the costs.
With so many critical changes coming in at uncertain times, where you as employers are preparing to take some of the financial burden as you start up again, difficult yet important decisions will need to be made particularly in instances where there is a sudden absence of revenue and an increase in staffing costs.
With the stakes so high, we at Thorneycroft Solicitors are at hand to advise and assist you to ensure you get the process right, thereby avoiding any potential pitfalls.
If you have a question about the Coronavirus Job Retention Scheme, or you need advice relating any other employment law or HR matter, our team are here to help.
Call our team for free today on 01625 506 507 or complete our online enquiry form by clicking here.
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