UPDATED ON 01 JUNE AT 12:08
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim CJRS grant for their normal hours not worked. When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.
The scheme will close to new entrants from 30 June. From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
This means that the final date by which an employer can furlough an employee for the first time will be 10 June, in order for the current 3 week furlough period to be completed by 30 June. Employers will have until 31 July to make any claims in respect of the period to 30 June.
Further guidance on flexible furloughing and how employers should calculate claims will be published on 12 June. Find out more information on how the Coronavirus Job Retention Scheme is changing.
The scheme has been extended until the end of October 2020.
- furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
- new flexibility will be introduced from August 2020 to get employees back to work and boost economy
The scheme allows employers to claim for a grant of up to 80% of an employee’s wages. Please note that this is capped at £2,500 a month.
Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities. To prepare to make your claim you will need:
- a Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one online, or by going to GOV.UK and searching for ‘HMRC services: sign in or register’
- be enrolled for PAYE online – if you aren’t registered yet, you can do so now, or by going to GOV.UK and searching for ‘PAYE Online for employers’
- the following information for each furloughed employee you will be claiming for: Name, National Insurance number, Claim period and claim amount, PAYE/employee number (optional).
- if you have fewer than 100 furloughed staff – you will need to input information directly into the system for each employee. If you have 100 or more furloughed staff – you will need to upload a file with information for each employee; HMRC will accept the following file types: .xls .xlsx .csv .ods.
You should retain all records and calculations in respect of your claims. You can find more information on the scheme and eligibility to claim here.
If you and your employer both agree, your employer might be able to keep you on the payroll if they’re unable to operate or have no work for you to do because of Coronavirus (COVID-19). This is known as being ‘on furlough’.
You’ll still be paid by your employer and pay taxes from your income. You cannot undertake work for your employer while on furlough. We expect the scheme to be up and running by the end of April.
Firms will be eligible for the grant from the date you ceased work, from 1 March. Your employer:
- will pay you at least 80% of your regular monthly wages, up to a maximum of £2,500, as your wage
- can choose to pay you more than the grant – but they do not have to
- cannot choose to pay you less than the grant
You’ll still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from your wage.
Your employer is responsible for claiming through the Job Retention Scheme on your behalf and for paying you what you are entitled to. You cannot apply for the scheme yourself.
Both you and your employer must agree to put you on furlough – so speak to your employer about whether they can claim. Once agreed your employer must confirm in writing that you have been furloughed to be eligible to claim. Contact your employer if you do not receive confirmation.
Any employer with a UK payroll and a UK bank account will be able to claim, but you must have been on your employer’s PAYE payroll before or on 19 March 2020 and notified to HMRC on an RTI submission on or before 19 March 2020.
You can be on any type of contract, including a zero-hour contract or a temporary contract. You can be furloughed under the scheme if you are a foreign national.
This scheme does not apply if you are self-employed or to any income from self-employment. You may qualify for support under the Self-employment income support scheme.
If you were made redundant or stopped working for your employer after 28 February 2020, your employer can agree to re-employ you and place you on furlough.
If you currently have more than one employer, you can be put on furlough by one employer and continue to work for another. If you’re put on furlough by more than one employer, you’ll receive separate payments from each employer.
If you are on Universal Credit and you’re earning less because you’re on furlough, your Universal Credit payment might change – find out how earnings affect your payments.
If you are pregnant and about to start maternity leave, you should start maternity leave as normal. If your earnings have reduced because you were put on furlough or off sick before your maternity leave started, this may affect your Statutory Maternity Pay.
If you’re employed by an individual (for example, as a nanny) then your employer can furlough you under the scheme if you are paid through PAYE and were on their payroll on or before 19 March 2020
If you’re on a fixed term contract, your employer can choose to furlough you and claim a grant for 80% of your regular wages up to a cap of £2500 a month.
- If you’re an apprentice, you can be furloughed in the same way as other employees and continue to train.
The government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the Coronavirus outbreak.
You may be eligible to be furloughed, and receive a grant of 80% of your regular wages up to a monthly cap of £2500, if you are paid via PAYE and are in one of the following categories:
- You are an agency worker
- You are a company director
- You are a contractor with public sector engagements in scope of IR35 off-payroll working rules (IR35)
- You are a salaried member of a Limited Liability Partnership
- You are a Limb (b) worker
- You are an office holder
Detail on how this scheme can apply to you is available here.
Returning from Statutory Leave:
Statutory leave includes maternity leave, paternity leave, shared parental leave, adoption leave, sick leave and parental bereavement leave.
In line with other employees, if you are a full or part time employee furloughed on return from statutory leave your employer should calculate the grant against your salary, before tax, not the pay you received whilst on statutory leave.
If your pay varies, and you are furloughed on your return from statutory leave your employer should calculate the grant using either the:
- same month’s earning from the previous year
- average monthly earnings for the 2019-2020 tax year.
Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:
- making money for your employer or a company linked or associated to your employer
- providing services to your employer or a company linked or associated to your employer
If workers are required to, for example, complete training courses whilst they are furloughed, then they must be paid at least their appropriate minimum wage (NLW/NMW/AMW) for the time spent training, even if this is more than the 80% of their wage that will be subsidised.
If your contract allows, you may undertake other employment while your current employer has placed you on furlough, and this will not affect the grant that they can claim under the scheme. You will need to be able to return to work for the employer that has placed you on furlough if they decide to stop furloughing you, and you must be able to undertake any training they require while on furlough.
If you take on new employment, you should ensure you complete the starter checklist form with your new employer correctly.
If your employer asks you to go on furlough and you refuse you may be at risk of redundancy or termination of employment, depending on the circumstances of your employer. However, this must be in line with normal redundancy rules and protections.