The Government’s Coronavirus Job Retention Scheme (CJRS) has been a lifeline for many employers and its extension to the end of October is welcomed by many. However, there are a number of very important changes that employers need to be aware of. HMRC guidance was updated on 12 June and it outlines how the scheme will change from 1 July.
From 1 July employers are able to bring back furloughed staff for any number of hours and on any working pattern, as long as this is agreed between the employee and employer. Previously furloughed staff were not able to undertake any work, but could undertake training.
Balance between paid work and furlough
Any hours worked must be paid at the employee’s full rate of pay and cannot be claimed for under the scheme. Therefore, any CJRS reimbursements can only cover the difference between an employee’s contracted hours and actual hours worked.
Limit on new claims
The updated guidance clarifies that only staff who have been furloughed for a minimum period of three weeks prior to 30 June can be claimed for after the end of July. The last day an employee could have been furloughed was 10 June in order to qualify under the changing rules of the scheme.
For further details, see the HMRC’s updated guidance.