There’s a new “F-word”…yes, you guessed it – furlough.
What a difference a year makes. Twelve months ago, it is highly likely that the average Brit had never come across the term. However, since the furlough scheme, officially known as the Coronavirus Job Retention Scheme (CJRS) was introduced in March, almost 10 million jobs have been supported.
Equally, since its inception, the scheme has undergone more than one makeover. In fact, it has been extended on no less than three different occasions.
All this can mean that staying up to date with the latest regulations can be extremely complicated.
To help ease the burden and prevent you from hours of unnecessary research, we’ve decided to produce this short article that contains all of the latest rules and regulations relating to the furlough scheme.
Who is eligible for the CJRS?
All employers with a UK bank account and UK PAYE schemes can claim for the grant. The employer does not have to have previously used the CJRS to be eligible.
To be eligible for the CJRS, employees must have been on an employer’s PAYE payroll on October 30, 2020. This means that an RTI submission for that employee must have been made between March and before October 30, 2020.
Employees can be furloughed regardless of whether they have or have not been previously furloughed. If an employee is being furloughed for the first time and was not employed on March 19 2020, the updated calculations and reference period must be used.
For fixed salary employees this will mean 80% of the wages payable in the last pay period ending on or before October 30. Those on variable pay will receive 80% of the average payable between the start date of their employment or, April 6, whichever is later, and the day before their extension furlough period begins.
Any employee who has been previously furloughed, or has been employed since March 19 2020, will have their pay calculated based on the previous pay reference period. For fixed salary employees, this will relate to 80% of the last pay period ending on or before March 19.
All employees on variable pay will be eligible to receive the higher of either 80% of the wages earned in the corresponding calendar period in the tax year 2019 to 2020 or, the average wages payable in the tax year 2019/20.
Employees on all types of contract are eligible and employers will need to agree to any working arrangements with employees.
Those who are shielding or live with someone who is shielding are eligible, as is anyone who has caring responsibilities as a result of coronavirus.