The Chancellor, Rishi Sunak, has announced an extension to the Coronavirus Job Retention Scheme (CJRS) which was due to end on 2nd December 2020. The scheme will now run until the end of March 2021.
Employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500.00 per month. Employers will only be asked to cover National Insurance and employer pension contributions. Employers will have flexibility to use the scheme for any amount of time and shift pattern, including furloughing employees full-time. The government has stated that it will review the scheme in January 2021.
Neither the employer nor employee needs to have made a previous claim under the CJRS in order to make a new claim under the extended CJRS. An employer can only claim for employees who were employed and on their PAYE payroll on 30th October 2020.
If an employee was on the payroll on 23rd September 2020 but was made redundant afterwards, they can be re-employed and claimed for.
As a result of the extension the Jobs Retention Bonus, which was to pay employers £1000 for every employee who remained in employment in January 2021, will not be paid.
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