Coronavirus: Update on Furlough Scheme
On 29 May, the Chancellor Rishi Sunak set out a number of changes to the Coronavirus Job Retention Scheme.
Changes to the Coronavirus Job Retention Scheme (CJRS) include:
- From 1 July (brought forward from August as originally anticipated) part-time working will be allowed under the scheme. This ‘flexible furloughing’ will mean that employers can still claim under the CJRS for employees’ hours not worked but will have to pay in full for any hours worked and will be responsible for tax and National Insurance contributions on those payments. Further guidance on flexible furloughing and how employers should calculate claims is expected to be published on 12 June;
- From 1 August, employers will have to pay employees’ National Insurance and pension contributions;
- From 1 September, employers will have to pay 10% of wages. The Government will continue to reimburse 70% of wages, up to a maximum of £2,190.
- From 1 October, employers will have to pay 20% of wages. The Government will continue to reimburse 60% of wages, up to a maximum of £1,875.
The CJRS is still currently due to expire at the end of October.
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If you have an employment law issue, please contact one of our specialist employment law solicitors at LincsLaw on 01522 440512 or visit our website at www.lincslaw.co.uk for more details on how we can help you.
Specialist Employment Solicitor
LincsLaw Employment Solicitors