As part of the national one-month lockdown commencing on Thursday 5 November 2020, the Government initially confirmed that the Coronavirus Job Retention Scheme (CJRS) would be extended until December 2020. However, in a Treasury briefing today, the government has today announced that the job retention scheme will now continue until the end of March 2021.
This will mean that implementation of the Job Support Scheme which was due to replace CJRS on 1 November will be deferred as will the Job Retention Bonus of £1,000 per person.
Key points to note are:
- To be eligible for a claim an employee must have been in employment on 30 October 2020. The Guidance does not explicitly state that s/he must not have been under notice of termination at that date, but it is likely to be a condition when the formal terms of the Scheme are published
- Employees made redundant after 23 September 2020 may be reemployed and then furloughed
- Furlough may be on a full time or flexible basis
- Claims may be made for employees even if they have not previously been furloughed
- The basis of claims will be the same as for August 2020 – 80% of salary (up to a maximum of £2,500 per month with the employer paying employer’s NI and pension contributions for hours not worked.
The Briefing is expected to be formalised shortly – presumably in the form of a Treasury Direction. We will report further when this is published.
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