The Chancellor is aiming to calm fears of a second spike by expanding the Job Support Scheme for areas and businesses forced to close their doors as part of local or national restrictions.
If you don’t have a separate HR system to manage employee information, sick leave, absences or time-off, keeping on top of this can be a real nightmare. You also run the risk that staff may over-request annual leave.
The biggest scheme of its kind in the history of the UK, the Coronavirus Job Retention Scheme has been a necessary but costly measure for the government, currently estimated at over £20bn to date. This is only expected to increase as the scheme is extended to October 2020.
Last week we shared a blog covering the main updates to the Coronavirus Job Retention Scheme as announced by the Chancellor on Friday 29 May.
Whilst we’re still waiting for a further announcement later this week (confirmed 12 June), we’ve provided some additional details on other changes to the scheme here.
On Friday 29th May, the Chancellor, Rishi Sunak, announced more details about the extension to the Coronavirus Job Retention Scheme (CJRS).
Here is a summary of the three major updates you need to know about:
1. As of August, you must contribute to furloughed employees’ wage costs. The level of contribution will increase each month until the scheme closes in October.
2. The current furlough scheme will close to new entrants on the 30th of June. If you want to put any new employees on furlough, you must do so by the 10th of June.
3. A new flexible furlough scheme will launch from the 1st of July. You can bring furloughed employees back on part-time hours and claim for the time your employees are not at work, to a set limit.