On 3rd March the government has announced that the Coronavirus Job Retention Scheme (CJRS), or furlough scheme as it is more commonly knows, will be extended by a further five months. The scheme close date is now 30th September 2021.
The level of grant available to employers under the scheme will stay the same until 30 June 2021.
From 1st July employers be expected to contribute towards the employees’ wages – starting at 10% and rising to 20% in August and September for unpaid hours. To be eligible for the scheme employers must continue to pay their furloughed employees 80% of their wages, up to a cap of £2,500 per month.
As before, employers can use the furlough scheme flexibly and choose to top up wages above the 80% /the £2,500 cap for unworked hours but are not obliged to do so.
Full details of the furlough updates are found on the government website.
You might not be aware that where you have claimed too much, or voluntarily decide to repay some of the furlough grant you have claimed, there is now a mechanism for doing so. Do be mindful of the timeframes for doing so, particularly if you have overclaimed. You will need to inform HMRC no later than 90 days after the date you received the grant you were not entitled to.
There are still key considerations for employers, bearing in mind that your teams may have been furloughed for more than a year by the end of September and that it is unlikely the scheme will be extended further:
- plan for the transition back to work as the economy picks up, who do you need back, doing which role and by when? Make a plan and share it in good time. Be sure to talk to people to allay any fears and reassure them you are complying with the necessary safe working practices.
- consider how you can re engage and energise your team towards company goals which may well have changed. You might want to run some team building or wellbeing events – here at Redway HR we are spearheading a movement running free wellbeing and engagement talks. You can find out more at our introductory event on 23rd March.
- from a practical perspective make sure to plan in annual leave during the furlough period to avoid large accruals which may disrupt the team on their return. Don’t forget to give the right notice if you are setting holiday dates, and to top up their furlough pay to 100% for the time they are on leave
If you need help with furlough updates or planning and implementing the return to work as the economy as it picks up, do get in touch today.