Following the new lockdown restrictions announced by Boris Johnson on Saturday, the new Job Support Scheme has not been launched for November as originally planned. Instead, the furlough scheme has been extended to December.
The guidance states that the Government will cover 80% of the employee’s current salary for hours not worked up to £2,500. However, businesses will need to cover the pension and National Insurance cost. Employees can be fully furloughed or the business will have the flexibility to furlough the employees on a part-time basis (flexible furlough). Hours worked will need to be paid at the employee’s normal rate by the employer.
The other key points:
- The claims will be processed in the same method as previously advised but the payments will be paid in arrears whilst the Government updates its systems which may cause a short delay
- All employers with a UK bank account and UK PAYE scheme can claim the extended CJRS grant; you do not need to have claimed previously
- To be eligible, the employee must have been on an RTI submission on or before 30 October 2020
- Employers can choose to top up the employees’ wages to 100% at their own expenses if they wish to
The guidance has not specified if the CJRS grant will only run to the end of the calendar month or if it will continue to 2 December, which is the date when the new national restrictions are due to end.