Key information and support on the Coronavirus Job Retention Scheme (JRS)

What you need to know

Key dates
Start date: 1 March 2020
End date: 31 October 2020 - the scheme will change after 31 July.
Employees need to be on payroll (ie on an RTI report) as of: 19 March 2020
Claims portal opened: 20 April 2020

Who can claim: 
Any employer with a UK PAYE scheme and a UK bank account.
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How much can be claimed: 
A grant of 80% of furloughed employees' pay up to a maximum of £2,500 per month, plus employers' NIC and auto-enrolled pension contribution. 

How long does the scheme run: 
From 1 March 2020 until 31 October 2020 - the scheme will change after 31 July.

From August, employers currently using the scheme will have more flexibility to bring their furloughed employees back to work part time while still receiving support from the scheme.

This revised scheme will run for three months from August through to the end of October. Employers will be asked to pay a percentage towards the salaries of their furloughed staff. The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month. More specific details and information around its implementation will be made available by the end of May.

Which employees can be claimed for: Employees who were on payroll (ie on an RTI report) as of 19 March 2020, and have been put on furlough. Employers should write to their employees confirming that they have been furloughed and keep a record of this communication until at least 30 June 2025.

What does furlough mean: Employees on furlough cannot do any work for the organisation. The further Treasury Direction under Sections 71 and 76 of the Coronavirus Act 2020 published on 22 May emphasises that the training activities a furloughed employee can undertake while on furlough must not provide a service to the employer, nor can they contribute to the business activities or generate income or profit for the employer. They must however be relevant to the employee's employment.

How much do I have to pay the employee: The employee must be paid in accordance with their employment contract (which may be amended by agreement) and they retain their usual rights at work. The employee must be paid at least as much as the amount of the grant received from HMRC.

When will grants be paid: Within six working days of a claim being submitted.

How long do staff have to be furloughed: The grant can only be applied for a minimum period of three weeks, although this can be extended. It is possible to move employees in and out of furlough as business requirements evolve. However good records will need to be kept to validate any grants claimed and this will be subject to the minimum furlough period of 3 continuous weeks.

Who isn't covered by CJRS
The scheme isn't open to those businesses that:

• Use annual payrolls where 2019/20 RTI report made after 19 March 2020.
• Have no UK bank account, for example those whose payroll is handled through a UK representative's UK bank account.

The scheme doesn't cover employees who:

• Started a job by 19 March 2020, but had no payment of earnings by that date.
• Are directors who take most income as dividends (any salary they take is covered).
• Are put on reduced hours instead of being furloughed. This may change when the second phase of the CJRS begins in August 2020, although currently, ie as at 22 May 2020, this is unconfirmed.