From the 1 November 2020, the UK government will pay 80% of employees’ usual wages for the hours not worked, up to a cap of £2,500 per month. Employers and employees do not need to have benefited from the scheme before to claim.
Claims can be made for those employed on 30 October 2020, provided an RTI submission had been made between 20 March 2020 and 30 October 2020 notifying a payment of earnings for the employee.
This iteration of the CJRS will remain open until the 31 March 2021 with the government set to review the terms of the scheme in January 2021
In his announcement on 31 October of a new national lockdown for England from 5 November until 1 December, the Prime Minister confirmed that the CJRS has been extended for a further month.
The CJRS was due to have ended after being scaled back to cover 60% of salaries during October.
Details confirmed by the Chancellor reveal that the scheme will retain the flexible element, but the level of government support will return to the levels given in August. In this iteration, furloughed employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
Employers will be able to furlough employees full time or part time, but to be eligible for the grant an employee must have been on an RTI submission made to HMRC before 23.59 on 30 October 2020.
Employers will only be asked to cover employer national insurance and pension contributions for hours not worked. They will continue to pay for hours worked as normal. Employers can top up furloughed staff’s salary to the previously contracted amount if that is what has been agreed with the employee.