The Business Exchange Swindon & Wiltshire Edition 49: June/July 2020 | Page 16

Extension of the Coronavir
What it means for your bus
Rob Creer, Business Navigator for the Swindon & W
Coronavirus Job Retention Scheme (CJRS) and wha
On 29‌th May the Government announced an extension of
the Coronavirus Job Retention Scheme. We’ve outlined the
changes for you and looked at some examples of how you
can use the new flexibility to aid your business recovery.
Changes to Coronavirus Job Retention Scheme
From 1‌st‌July 2020, the scheme will be made more flexible to
enable employers to bring previously furloughed employees
back part time and still receive a grant for the time when they
are not working.
From 1‌st‌August, employers will have to start contributing
to the wage costs of paying their furloughed staff and this
employer contribution will gradually increase in September
and October.
The scheme will close to new entrants from 30‌‌th June.
Part time furloughing
From 1‌‌st July, businesses using the scheme will have the
flexibility to bring previously furloughed employees back
to work part time – with the Government continuing to pay
80 per cent of wages for any of their normal hours they do
not work up until the end of August. This flexibility comes a
month earlier than previously announced to help people get
back to work.
Employers will decide the hours and shift patterns their
employees will work on their return and will be responsible
for paying their wages in full while working. This means that
employees can work as much or as little as the business
needs, with no minimum time that they can furlough staff for.
Any working hours arrangement agreed between a
business and their employee must cover at least one week
and be confirmed to the employee in writing. When claiming
the CJRS grant for furloughed hours, they will need to report
and claim for a minimum period of a week. They can choose
to make claims for longer periods such as on monthly or
two weekly cycles if preferred. Employers will be required
to submit data on the usual hours an employee would be
expected to work in a claim period and actual hours worked.
If employees are unable to return to work, or employers
do not have work for them to do, they can remain on furlough
and the employer can continue
full hours under the existing ru
Practical examples
If you have limited space at you
using the flexibility to bring staf
shifts, helping you to maintain s
building up productivity.
You could bring back more s
their skills to help your busines
Depending on business requ
mix bringing back some staff fu
while work volumes increase.
The new flexibility can also h
leave, allowing you to bring bac
Employer contributions
From August, the Government
job retention scheme will begin
following timeline:
June and July
The Government will pay 80 per
£2,500 as well as employer Nat
pension contributions for the ho
work – employers will have to p
they work.
August
The Government will continue t
up to a cap of £2,500 but emplo
pension contributions – for the
5% of the gross employment co
incurred if the employee had no
September
The Government will pay 70 per
of £2,187.50 for the hours the e
employers will pay ER NICs, pe
per cent of wages to make up 8
cap of £2,500.