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Coronavirus Job Retention (Furlough) Scheme Guidance Published

View profile for Emily Yeardley
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Following on from yesterday’s blog confirming the extension of the Coronavirus Job Retention Scheme (CJRS) until 31 March 2021, the Guidance is now available.

In addition to the key points and changes identified in our blog yesterday, the Guidance provides that:

  • the government is reviewing whether employers should be eligible to claim for employees serving contractual or statutory notice periods and will change the approach for claim periods starting on or after 1 December 2020.
    • Further Guidance on this will be issued in late November. This appears to depart from the clarification issued by HMRC on 17 July 2020 confirming that an employer could make a claim under the CJRS for an employee’s statutory or contractual notice. This further uncertainty could result in employers being reluctant to risk the financial consequences of not being able to claim under the CJRS, if the government alters the position, leading to redundancies being made prior to 1 December 2020.
  • there are now monthly deadlines for claims.
    • Claims for periods on or after 1 November must be submitted within 14 days after the month they relate to. The exception being that if the day falls on a weekend, the deadline is the next weekday.
  • an employer can claim for any number of employees, not just those who have previously been furloughed, subject to reaching agreement with the employee and a written agreement being in place (which should be kept as evidence for 5 years).
  • The Job Retention Bonus due to be paid for employees retained after furlough to the end of January 2021 will not be paid.

If you have any questions regarding the Scheme or how to implement it in your business, please contact our Employment Department.

Please note that this information is for guidance only and should not be regarded as a substitute for taking full legal advice on specific facts and circumstances.

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