Covid-19: Job Retention Scheme cut-off in two days
8 Jun 2020
Employers planning to use the Coronavirus Job Retention Scheme (CJRS) from 1 July 2020 must have their staff furloughed by Wednesday 10 June (in two days) to be eligible for ‘mark 2’ of the scheme, warns ATT
8 Jun 2020
ATT is alerting employers intending to use Coronavirus Job Retention Scheme (CJRS) from 1 July 2020, that only employees who have been furloughed for a minimum of three weeks on or before 30 June 2020 will be eligible for the scheme after that point
Any employees not yet furloughed, must be furloughed no later than Wednesday (10 June 2020) if they are to be eligible for support during the final four months of the scheme.
The original ‘mark 1’ version of the CJRS closes on 30 June 2020. From 1 July to 31 October 2020, it will be replaced with a revised ‘mark 2’ version of the scheme which will allow employers to bring furloughed staff back into work on a part-time basis.
But, based on the latest available information, only employees furloughed for a minimum of three continuous weeks at some point between 1 March and 30 June 2020 under the ‘mark 1’ scheme can be included in any claims under the ‘mark 2’ scheme.
The ‘mark 2’ scheme therefore requires employees to have had a qualifying furlough period under the ‘mark 1’ scheme. This means that the final date by which an employer can furlough a member of staff who has not previously been furloughed - but whom they may wish to include under the ‘mark 2’ scheme - is 10 June 2020.
Jeremy Coker, ATT president, said: ‘We welcome the extension of the furlough scheme to 31 October but it is possible that some businesses may not have furloughed some staff in the first three months of the scheme who they then wish to furlough during July to October.
‘They need to be aware that while the scheme will still be running, unless the employee has been furloughed at some point between 1 March and 30 June 2020 for a minimum of three continuous weeks, it will not be possible to furlough them between 1 July and 31 October.’
‘Employers should be aware that from 1 July, the number of employees that they can include on CJRS claims for periods from that date will be capped.
‘The cap will be equal to the maximum number of employees previously claimed for under the scheme; if an employer has made claims to date with eight, ten and then nine employees, the maximum number of employees they can include on a claim for any period after 1 July will be ten.’
Full guidance on the new ‘mark 2’ scheme is expected on 12 June, which is two days after the deadline for new entrants of 10 June.