JRS Update: 29 May 2020
As promised, the Government updated its further guidance on the JRS on 29 May 2020.
We summarise the key changes below:
- From 1 July 2020, employers can bring back to work employees who have previously been furloughed for any amount of time and any shift pattern. This means that employees will be able to work part-time and be furloughed part-time. Employers will still be able to claim for the employees’ furloughed hours, as long as they report and claim for a minimum period of one week.
- From 1 July 2020, employers will only be able to furlough those employees who have already been furloughed for a full three week period prior to 30 June 2020. This means that the final date by which an employer can furlough an employee for the first time will be 10 June 2020.
- Employers will have until 31 July 2020 to make any claims in respect of the period to 30 June 2020.
- From 1 August 2020, employers will be unable to recover ER NICs and pension contributions though the JRS.
- From 1 September 2020, the Government will only cover 70% of the furloughed employees’ wages up to a cap of £2,187.50. Employers will be required to top up their furloughed employees’ salaries to 80% (or more, depending on what the employer agreed with the employee).
- From 1 October 2020, the Government will only cover 60% of the furloughed employees’ wages up to a cap of £1,875. Employers will continue to top up their furloughed employees’ salaries to 80% (or more, depending on what the employer agreed with the employee).
- The JRS will close on 31 October 2020.
"The Government has promised to publish further guidance on flexible furloughing and how employers should calculate such claims on 12 June 2020."
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All information in this update is accurate at the time of writing. It is meant for general information only and is not legal advice.