The Government has announced that the Coronavirus Job Retention Scheme (CJRS) will now remain open until the end of March 2021, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ended on 31 October. This means the CJRS is more generous for employers than it was in October, albeit there will be a review of the Scheme’s terms in January 2021 (see below). The Treasury have also published a Policy paper – Extension of the Coronavirus Job Retention Scheme which applies for CJRS claims for the period 1 November 2020 to 31 January 2021. Full guidance for the CJRS extension will be published later in November. The guidance for claim periods from February onwards will be published following the government’s review in January 2021 to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions. The Job Support Scheme (JSS), which was due to start on 1 November 2020, has now been postponed because of the CJRS’ extension.
Furlough scheme extended and Job Support Scheme postponed
Article by: Makbool Javaid, Partner - Simons Muirhead & Burton |