Coronavirus Job Retention Scheme Extended

CJRS has been extended as the UK enters second lockdown, with the scheme set to be in place until March 2021.

With the commencement of the second Coronavirus lockdown in England as of 5th November 2020, the government has decided to extend the Coronavirus Job Retention Scheme (CJRS) from 31 October 2020 to 31 March 2021; with claims made between November 2020 and January 2021 to be more generous for employers than it was in October.

Here's what you need to know about the extended CJRS:

  • The government will pay 80% of wage costs for hours furloughed employees do not work, up to a cap of £2,500, proportional to the hours not worked, from 1 November 2020 to January 2021.
  • Employers will still need to pay all National Insurance Contributions (NICs) and pension contributions, however employers will have flexibility to decide whether employees are to work on a part-time basis (whilst on flexi-furlough), or whether to furlough employees full-time.
  • The government will review the policy in January to decide whether economic circumstances are improving enough to ask employers to contribute more, and we will keep you updated of any developments.

Who is eligible for the extended Coronavirus Job Retention Scheme (CJRS)?

One noticeable change in the extension is that neither the employer/employee needs to have used the CJRS previously to be eligible. You can claim for employees who were on your PAYE payroll on 30 October 2020, and for which a PAYE Real Time Information (RTI) submission has been made to HMRC between 20 March and 30 October.

If employees were on your payroll on 23 September (i.e. notified to HMRC by way of a RTI submission on or before 23 September) and have since been made redundant or stopped working for you, then they will also qualify for the scheme if you re-employ them.

One notable point of the extended CJRS is that for employees who were previously eligible under the CJRS scheme, regardless of whether a claim was made for that employee prior to 31 October 2020, you will still calculate the 80% wage costs as per the original scheme. Whilst for employees who meet the criteria of the extended scheme, but were not previously eligible, you are to use an alternative calculation for reference pay and usual hours to take account of updated reference periods.

CJRS: Employers should bear in mind

As what appears to be a deterrent, HMRC will publish details of employers who make claims under the extended CJRS scheme from December. It is also worth noting that the government has restated that employers must:

  • Make sure that the furlough agreement is consistent with employment, equality and discrimination laws;
  • Keep a written record of the furlough agreement for 5 years; and
  • Keep records of how many hours their employees work and the number of hours they are furloughed for 6 years.

An update on other Covid schemes and bonuses

The Job Support Scheme, which was due to commence on 1 November has now been postponed, assumingly until the CJRS comes to an end, however we are awaiting further guidance to confirm this. (You can read more about the JSS and the original Winter economy Plan here)

Additionally, the Job Retention Bonus will not be paid in February 2021, and a similar retention incentive is promised to be deployed at the appropriate time. However, the government has also announced that business premises forced to close in England are to receive grants worth up to £3,000 per month under the Local Restrictions Support Grant.

Should you require any advice regarding the CJRS, please do not hesitate to contact a member of our team.

Get in touch

Use our handy contact form to send us your enquiry. We’ll direct it to the right legal expert and respond as quickly as possible. It costs nothing to make an enquiry and it is entirely confidential.

See our privacy notice to find out how we use and protect your data.

If you would like to contact a specific member of the SA Law team, you can view all team profiles here

Contact Us
Managing people, employment law & HR issues during the Coronavirus Pandemic
Stained glass window Employment SA Law
Views & Insights
Winter Economy Plan - What is the Job Support Scheme and how will it work?

Chris Cook examines the key points from Rishi Sunak's coronavirus winter economy plan.

Read More
Stained glass window Employment SA Law
Views & Insights
Covid-19 and home-working mental health for the insurance industry

Keely comments on mental health issues faced by home-workers in the insurance industry plus duty of care and handling HR issues remotely during covid-19.

Read More
Stained glass window Employment SA Law
Views & Insights
Coronavirus Job Retention Scheme: Updated Guidance on Flexible Furloughing

Under the flexible furlough scheme, employees can work for some of the week and be furloughed for the rest, in proportions decided between employee and…

Read More
Stained glass window Employment SA Law
Views & Insights
Coronavirus Job Retention Scheme: Key changes between July – October 2020

Keely explores the key changes to the Covid-19 related furloughing that are set to impact employers and employees between July-October 2020.

Read More
Views & Insights
Promoting good mental wellbeing during lockdown

Mental Health Awareness Week: Kelly Pike highlights how to support staff.

Read More
Stained glass window Employment SA Law
Views & Insights
Coronavirus Job Retention Scheme (CJRS) Direction and Extended Deadline

The Coronavirus Job Retention Scheme will be extended to 30 June 2020, plus The Treasury has also issued a Direction to HMRC which provides legally binding…

Read More
Stained glass window Employment SA Law
Views & Insights
COVID-19 Right to Work Checks Adjustment

Adjustments made to Right to Work Checks process for employers during COVID-19.

Read More
Stained glass window Employment SA Law
Views & Insights
Updated Furlough Guidance provides clarification for employers

Over the weekend the government updated its guidance for employers on the Coronavirus Job Retention Scheme (CJRS) - Keely Rushmore reports.

Read More
Stained glass window Employment SA Law
Views & Insights
FAQs Furloughing Employees / Job Retention Scheme

Frequently asked questions on Furloughing Employees to help employers, line managers and employees – answered by SA Law’s employment team.

Read More
Stained glass window Employment SA Law
Views & Insights
Coronavirus (COVID-19) Employment Law Issues

Sick pay, home working and enforcing holiday – Chris Cook discusses the topics that are on HR Teams agendas right now.

Read More
Views & Insights
Measures to help self-employed in light of Covid-19

Christine Caffrey explains the UK government’s measures to assist the five million self employed people in the UK through business disruption due to corona…

Read More
Stained glass window Employment SA Law
Views & Insights
Everything you need to know about “Furloughed Employees”

Following the announcement of the Job Retention Scheme, organisations now have to designate affected employees as “furloughed employees”, What does this…

Read More
SA Law Work Life red mug and glasses
Views & Insights
Further guidance on the Coronavirus Job Retention Scheme

Key points need to know about the the Coronavirus Job Retention Scheme, more commonly known as the Furlough Scheme.

Read More
Stained glass window Employment SA Law
Coronavirus Job Retention Scheme

Following the announcement of the Job Retention Scheme by the Prime Minister on Friday, Chris Cook and Keely Rushmore outline what the scheme may mean…

Read More
Stained glass window Employment SA Law
Views & Insights
Delay to Off-payroll working changes (IR35)

Important Information: Delay to IR35

Read More
SA Law Work Life red mug and glasses
Views & Insights
What employers need to know about novel Coronavirus (COVID-19)

Guidance for employers on how to plan, respond and reduce risk related to Coronavirus

Read More

© SA LAW 2020

Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them alone. You are recommended to obtain specific advice in respect of individual cases.