We now have further details of the operation of the extension of the Coronavirus Job Retention Scheme (CJRS) “furlough” that applies from 1 November 2020 through to the end of March 2021. The government support will initially be at the rate of 80% of an employee’s reference pay for hours they are furloughed, subject to a maximum of £2,500 a month.
Claims must be made by the 14th of the following month although they can be made up to 14 days in advance.
Another key difference from the previous versions of CJRS is that there is no requirement that the employee was on the payroll at 19 March 2020 or has been previously furloughed. They do however need to be on the payroll and subject to a Real Time Information (RTI) submission prior to midnight on 30 October 2020.
Employee reference pay
An employee’s reference pay will depend upon whether or not they were on the payroll and subject to a RTI submission for 2019/20 on or before 19 March 2020. Where this is the case, their reference pay will be that used under previous furlough claims.
Where the employee has joined since that date or not subject to an RTI submission prior to 19 March, the reference pay will generally be that for the last pay period ending before 30 October.
There are exceptions to these rules and complications for those working variable hours and with variable rates of pay.
For more information about the Government measures to protect individuals and businesses, visit our COVID-19: Support for UK businesses hub.