Extension of Scheme for Furloughing Employees

Coronavirus Job Retention Scheme (CJRS)

It was announced yesterday that the CJRS, which was scheduled to end on 30 June, has been extended in its current form to 31 July, and in a modified form from 1 August to 31 October.

Under the scheme at present, employers can continue to employ furloughed workers and reclaim 80% of their wages from the Government. This has proved to be a hugely popular, and expensive, incentive for employers not to lay off staff during the pandemic.

From 1 August to 31 October, the scheme will be modified. Employers will be allowed to have furloughed employees returning to work part time. They will not be able to claim the full 80% of furloughed employees’ wages from the Government but will have to pay a proportion themselves to ensure that employees’ total wages are maintained at least at the 80% level.

The Government clearly hopes that this will protect jobs which might otherwise be lost, by assisting employers with a gradual return to business as the lockdown restrictions are relaxed over the coming months.

Further details of the changes and their implementation will be announced by the end of May.