Eligibility and Accessing the Coronavirus (COVID-19) Job Retention Scheme

Last updated: 6th April 2020 17:00

Job Retention Scheme Eligibillity

We’ve made it easy for you to see who’s eligible for the Job Retention Scheme. Use the links below to see if they’re eligible, who needs to claim, and what considerations need to be made before claiming.

Eligible for Job Retention Scheme

Full-time employee
Who claims?
Employer.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. Fees, commissions and bonuses are excluded for the calculation of wages.

Part-time employee
Who claims?
Employer.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. Fees, commissions and bonuses are excluded for the calculation of wages.

Employee with flexible or zero hours contract
Who claims?
Employer.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. For employees with a full year of employment the wages are calculated as the higher of either:
i) the amount earned in the same month last year
ii) an average monthly earnings from the last year
For employees with less than one year's service, the claim will be based on an average of monthly earnings since the commencement of the employment. The same arrangements apply if your monthly pay varies such as if you are on a zero-hour contract. Fees, commissions and bonuses are excluded for the calculation of wages.

Agency Worker
Who claims?
Agency for workers under PAYE.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, agency worker must do no work elsewhere. For engagements through an agency for at least a year the wages are calculated as the higher of either:
i) the amount earned in the same month last year
ii) an average monthly earnings from the last year
For agency workers with less than one year's service, the claim will be based on an average of monthly earnings since the commencement of the engagement. Fees, commissions and bonuses are excluded for the calculation of wages.

Employee with more than one job
Who claims?
Each Employer.
What can be claimed?
For each employment - Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. Fees, commissions and bonuses are excluded for the calculation of wages.

Salaried Partner
Who claims?
Partnership as employer.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. Fees, commissions and bonuses are excluded for the calculation of wages.

LLP Partners treated as salaried members for PAYE purposes
Who claims?
Partnership as deemed employer.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Furlough period must be minimum of 3 weeks, furloughed employee must do no work. Fees, commissions and bonuses are excluded for the calculation of wages.

Contractor with personal services company within IR35
Who claims?
Individual via PSC.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions.
Considerations
Director must be able to furlough himself and prepare for business to close.

Contractor with personal services company outside IR35
Who claims?
Individual via PSC.
What can be claimed?
Lower of 80% of wages or £2,500 per month plus employer NICs and employer auto-enrolment pension contributions, NB dividend payments would not qualify.
Considerations
Any grants under the scheme likely to be limited as dividends are not wages for the purposes of the JRS.

Not eligible for Job Retention Scheme

Employees who agree to reduced hours

To qualify for the JRS grant employees must be furloughed and do no work for the employer in the furlough period.

Employees whose contracts started on or after 20th March 2020

The scheme does not apply to anyone who started their employment on or after 20th March 2020. In addition, the scheme only applies to employees where a PAYE RTI submission was made to HMRC on or before 19th March 2020 in their respect. So, for example, you are unable to claim for an individual who started their employment on 1 March if the first RTI submission notifying a payment to the employee was made to HMRC after 19 March 2020. 

Self-employed engaged with you

The self-employed can use the self-employed scheme instead https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme.

Partner

Partners can use the self-employed scheme instead https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme.

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