Coronavirus Job Retention Scheme Extension – Latest Guidance

On Tuesday (10th Nov) evening the Government published the full version of its guidance on the extended Coronavirus Job Retention Scheme (CJRS) (also known as the Furlough Scheme). Highlighted below are the additional points within the new guidance that you need to be aware of.

Dated: 13 November 2020 Author: James Hunt, Employment Services Senior Manager 

Please pay particular attention to the points marked in bold below especially in relation to claim amendments.

  • Calculating reference pay (80% of wages):

    • For employees who were either on your payroll on 19 March 2020, included in an RTI submission to HMRC on or before 19 March 2020, or any for whom you made a valid CJRS claim for a period ending on or before 31 October 2020.  For fixed pay and hours and variable pay and hours the calculation method has not changed:

      • Fixed pay and hours - pay and contracted hours in the last pay period ending on or before 19 March 2020

      • Variable pay and hours - the higher of average pay and hours for the 19/20 tax year or the corresponding calendar period in the 19/20 tax year

      • Variable pay and hours, all other employees - average wages payable and hours worked between 6 April 2020, or start of employment if later, and the day before they are furloughed on or after 1 November 2020

  • Claim amendments – Should you need to revisit and increase a previously submitted claim there is only a small window in which to do so eg 28 days after the end of the month to which it relates (if it falls on a weekend then the deadline will be next working day)

  • There are no restrictions on the maximum number of employees that you can claim for

  • Termination/Redundancies – the Government is currently reviewing whether you can claim for those serving statutory or contractual notice periods and will change the approach for claim periods starting on or after 1 December (further guidance surrounding this is expected late November and we will issue an update as soon as this information is available)

  • TUPE transfers – for claim periods after 1 November 2020, a new employer is eligible to claim in respect of the transferred employees of a previous business if the employee has been employed by their prior employer on or before 30 October 2020 and transferred to the new employer before 1 September 2020

  • Maternity – if an employee ends maternity leave early to be furloughed, the employee will need to provide 8-weeks’ notice of their return to work.  The furlough period can only commence after the 8-week notice period

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