Coronavirus Job Rentention Scheme (CJRS) November extension

What does the extension of the CJRS mean for employers?

Many organisations will have been preparing to implement the Job Support Scheme from 01 November 2020 to assist with the cost of wages as the CJRS furlough scheme was due to end on 31 October 2020. However the government's announcement on Saturday, that the CJRS will continue until December, means that employers can now continue to fully or flexibly furlough workers. The Job Support Scheme has been postponed until the furlough scheme ends.

What can employers claim under the extended scheme?

The extended CJRS is more financially beneficial to employers and employees than it was latterly, as employers will again be able to claim the 80% grant for hours not worked, mirroring the level of the grant available under the CJRS in August.

• The government will pay 80% of wages up to a cap of £2,500 and employers will pay employer National Insurance Contributions and pension contributions only for the hours the employee does not work.
• Employers may choose to top up employee wages above the scheme grant at their own expense if they wish.
• Employers can choose to fully furlough or flexibly furlough workers. Flexible furlough means that an employee may work reduced hours for which they will receive normal pay from the employer and then receive the grant for the remaining unworked hours.

What is the eligibility criteria?

In extending the scheme, the government has said, 'Employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month.' All employers with a UK bank account and UK PAYE schemes can claim the grant. The government expects that publicly funded organisations will not use the scheme, as has already been the case for CJRS, but partially publicly funded organisations may be eligible where their private revenues have been disrupted. In the extended scheme, the following points are of note:

• Neither the employer nor the employee needs to have previously used the CJRS
• Employees must be on an employer’s PAYE payroll by 23:59 on 30 October 2020

Further information:

The government has yet to produce detailed guidance. Up to date information on the extended scheme can be found on the government's website.