Monday 2nd November 2020
The Government has announced an extension to the CJRS, which was due to end on 31 October 2020. CJRS will now continue until the national lockdown measures are lifted, which is currently expected to be on 2 December 2020. The new JSS, which was due to take effect on 1 November 2020, will not be operative until CJRS ends.
Under the extended CJRS, full-time and flexible furlough are permitted, but the Government’s contribution to wages will increase to 80% again, subject to a maximum of £2,500 per month, but proportionate to the hours not worked. Employers will pay the employer's NIC and pension contributions, together with normal pay for hours worked or holiday taken, plus any top-up that has been agreed.
The press release states that employees do not need to have been furloughed before to be eligible, but must have been on the employer’s PAYE payroll by 23:59 on 30 October 2020.
HMRC’s press release is available here: https://www.gov.uk/government/news/furlough-scheme-extended-and-further-economic-support-announced
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.