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.