Check you're using the latest Job Retention Scheme Module so you can make a claim in Phase 2.
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The rules and eligibility of the CJRS changes from Wednesday 1 July. Find out more >
From Wednesday 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 the CJRS grant for their normal hours not worked. You pay your employees as normal for any hours that they've worked. Employers will also be able to agree any working pattern with employees that have previously been furloughed.
When claiming the CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of one week. This is a minimum period and employers making claims for longer periods, such as those on a monthly or fortnightly cycles will be able to do so.
To be eligible for the grant, you must agree any new flexible furloughing arrangement with your employee and have confirmation of this agreement in writing. You can then claim the grant for the hours the employees are not working calculated by a reference to their usual hours worked within a claim period.
What needs to be reported?
You'll need to report the hours the employee has worked, and the amount of hours they would have normally been expected to work, during the claim period.
An employee works a fixed amount of hours, this is 35 hours over five days. During this period, the employee is only needed for 3 days (21 hours) a week.
This employee will be paid by the employer at the normal rate for the 21 hours that have been worked. The remaining 14 hours are paid at the furlough rate and can be reclaimed under the Job Retention Scheme.
From August 2020, the amount that can be reclaimed will gradually be tapered to reflect that people will be returning to work:
- In June and July, the Government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee doesn't work. Employers will pay employees for the hours they work.
- In August, the Government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee doesn't work.
- In September, the Government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
- In October, the Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.
You can claim for multiple pay periods and employees at the same time. The start date of your claim is the start date of the earliest pay period you’re claiming for. The end date of your claim is the end date of the most recent pay period you’re claiming.
As with the current scheme, you can still choose to top-up your employee's wages above the scheme grant at your own expense.
TIP: Wage caps are proportional to the hours an employee is furloughed. For example, an employee's entitled to 60% of the £2500 cap if they're place on furlough for 60% of their normal hours.
Employer NICs and pension contributions
|80% up to £2,500||80% up to £2,500||70% up to £2,187.50||60% up to £1,875|
Employer NICs and pension contributions
|Employer contribution: Wages||-||-||10% up to £312.50||20% up to £625|
|Employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
Important dates to note:
|10 June 2020||Final date by which an employer can furlough an employee for the first time (furlough is a minimum period of three weeks).|
|30 June 2020||Coronavirus Job Retention Scheme closed to new entrants.|
|1 July 2020||Only employees who have been furloughed previously, for a period of three weeks, can be claimed for from this date.|
|1 July 2020||Furloughed employees can be brought back to work with CJRS being claimed for the hours not being worked|
|1 July 2020||Claim periods will be limited to months, no overlapping months will be permitted|
|1 July 2020||Employers will be able to claim under the new scheme.|
|31 July||Final date for employers to make claims for the period to 30 June 2020.|
Register for a free demo
Want to see the Job Retention Scheme Module in action? Our Sage 50cloud Payroll experts are running free live webinars. As well as watching the demonstration, you'll be able to put your questions to our experts.