Coronavirus Job Retention Scheme – Changes from 1 September 2020

From 1 September the Coronavirus Job Retention Scheme (CJRS) or “furlough scheme” is changing. The scheme will now only pay up to 70% of wages for any time spent on furlough leave, up to a cap of £2,187.50.

However, employers must still ensure that employees/workers receive at least 80% (up to £2,500) of their usual pay for any hours not worked but spent on furlough leave. The difference between these two figures must be funded by employers.

The caps are proportional to the hours not worked. For example, if the employee is furloughed for 50% of their hours in September, the business may claim 70% of those hours (up to £1,093.70 – 50% of the new cap).

Businesses must continue to pay NI contributions and pension contributions, as in August, and you can continue to part-time furlough staff as the business requires. You must ensure that proper records are kept in relation to part-time furloughing, including ensuring that you are temporarily varying contracts of employment in accordance with employment law. The system for claims remains the same.

We Can Help You

If you require any assistance with the furlough scheme and furloughed employees/workers, please do not hesitate to contact a member of our specialist Employment Law team through this website or by calling 0330 404 0778.

Our partners at Ashtons HR Consulting are also on hand to assist you.