The Job Retention Scheme (JRS) was launched in March 2020, to provide financial support to employers during the COVID-19 crisis; aimed to reduce the amount of redundancies. Employers have been able to apply for a grant online with HMRC to cover up to 80% of staff wages (capped at £2,500 per month). Employers have been able to claim the NI contributions and pension contributions.
Today, the 10th June 2020 is the last day that any new employees can be put on Furlough Leave. The scheme is open until 30th June, to allow employers to have the time to process their payroll and grant applications. Find out more: https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme
From 1st July 2020, employers are expected to start returning employees back to work on a part time basis and stay on Furlough Leave for the duration of their weekly contracted hours. Alongside this the Job Retention Scheme is changing. The scheme is running until October 2020. Here how the JRS will work for employers from 1st June 2020, onwards.
- June – July 2020: The JRS will pay out the 80% of employee’s salaries (inc the NIC and pension contributions) (capped at £2500 pm). Top up for salaries is still discretionary.
- August: The JRS will pay out the 80% of employee’s salaries. Employers will be expected to pay the NIC and pension contributions (capped at £2500 pm). Top up for salaries is still discretionary.
- September: The JRS will pay out for 70% of employee’s salaries (capped at £2190 pm). Employers will be expected to pay the NIC and pension contributions, and 10% of the employee’s salaries to make up 80% of the total (still capped at £2500 pm).
- October: The JRS will pay out for 60% of employee’s salaries (capped at £1875 pm). Employers will be expected to pay the NIC and pension contributions, and 20% of the employee’s salaries to make up 80% of the total (still capped at £2500 pm).
For further information about how the scheme works, visit our previous article: https://specialisedhr.co.uk/date-for-employees-to-qualify-for-furlough-have-changed-new-deadline-10th-june-2020/
Further information about part time working and part-Furlough Leave, also known as Flexible Furlough Leave; will be published around the 12th June 2020.
If you have a query about the Job Retention Scheme, Furlough Leave, employees returning to work or how to keep employees safe during this period, please get in touch with one of our HR experts: 0843 176 0266 / hello@specialisedhr.co.uk.
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