On May 29th, the Chancellor announced the details about the extension to the Job Retention Scheme. The extension won’t work the same as the scheme does now as employers will be able to bring staff back part-time and furlough them the rest of the time and employers will have to start making some contributions as well.
The scheme will close to new entrants on June 30th, which means that if employers want to take advantage of being able to furlough staff part-time, they need to make a claim by June 10th, 2020 on the current scheme (this allows staff to be furloughed for the minimum 3-week period). From July 1st, 2020, only employees who have been furloughed for a full 3-week period prior to June 30th, 2020 will be able to be furloughed part-time. However, employers will have until July 31st, 2020 to make any claims relating to the time period ending June 30th, 2020. All other existing criteria will still be in place.
From July 1st, 2020, employers will be able to bring staff back into the workplace on a part-time basis. Employers will be able to set the hours and shift patterns of those staff members, but employers will be responsible for paying all of the payroll costs towards those hours/days that staff work, and the government will pay for the remaining hours/days in the month that the staff have been furloughed.
In respect of the changes to the funding of the scheme, this is how the division will be from July 1st, 2020:
July 2020: The government will continue to pay 80% of wages up to £2,500 plus Employer NI contributions and pension contributions for staff who are furloughed. Employers will be responsible for ONLY paying payroll costs for the time an employee has worked.
August 2020: The government will pay 80% of wages up to £2,500 for staff who are furloughed. Employers will be responsible for paying Employer NI contributions, pension contributions, and all payroll costs for the time an employee worked.
September 2020: The government will pay 70% of wages up to £2,187.50 for staff who are furloughed. Employers will be responsible for paying Employer NI contributions, pension contributions, all payroll costs for the time an employee worked AND 10% of the furloughed wages which will ensure staff are still receiving 80% of their wages when furloughed.
October 2020: The government will pay 60% of wages up to £1,875 for staff who are furloughed. Employers will be responsible for paying Employer NI contributions, pension contributions, all payroll costs for the time an employee worked AND 20% of the furloughed wages which will ensure staff are still receiving 80% of their wages when furloughed.
Employers will need to submit the usual hours an employee would be expected to work in a claim period and the actual hours they have worked.
At present, the information on how to submit a claim through the Job Retention Scheme hasn’t been changed, but I will be continuing to monitor the situation and will share further information as it is released.
The government have stated that after October 31st, 2020, the Job Retention Scheme will be stopped and from November 1st, 2020 employers will be responsible for ALL of the payroll costs associated with having employees.
I am continually monitoring the updates that the government and other business-related departments release and will continue to share that information for as long as I feel that it is beneficial to all businesses in the UK.
The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.
Northern Ireland: https://www.nibusinessinfo.co.uk/
I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/