Guidance for businesses and workers on how to access the Coronavirus Job Retention Scheme has now been updated with more information about flexible furlough and overpayments.
Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme have been able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.
This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant. The Coronavirus Job Retention Scheme covers the cost of wages backdated to 1 March.
Guidance for Employers
Employers will be able to use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.
From 1 July , employers can bring furloughed employees back to work for any amount of time and any work pattern, while still being able to claim the grant for the hours not worked. From this date, only employees that you have successfully claimed a previous grant for will be eligible for more grants under the scheme. This means they must have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March and 30 June 2020. For the minimum 3 consecutive week period to be completed by 30 June, the last day an employee could have started furlough for the first time was 10 June. This may differ if you have an employee returning from statutory parental leave.
From 1 August 2020, you will be asked to contribute towards the cost of your furloughed employees’ wages.
Please use the following link to access the current guidance: https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers
Guidance for Employees
The guidance will help workers understand whether they are eligible for the scheme, and how much the employer can claim if they are unable to operate or if there is no work due to coronavirus (COVID 19).
Please use the following link to access the guidance: www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme