UK Corona Virus Job Retention Scheme (CRJS), commonly known as “Furlough” has been extended again until the end of April 2021. The scheme pays 80% of an employees salary, up to a maximum payment of GBP 2500 per month. The company must still pay the Social Costs and compulsory pension costs, and can top up the pay to 100% of normal salary if they wish.
Employees do not have to have been included in any earlier CRJS schemes to be included in this one.
Certain additional valid reasons for placing employees on Furlough have now been included.
Employees unable to work due to caring responsibilities
If an employee asks to be furloughed because they have caring responsibilities resulting from coronavirus, such as caring for children who are at home as a result of school or childcare facilities closing, they can be placed on furlough and claimed for under the CJRS.
CJRS claims can be used to pay for holiday leave
If companies have furloughed employees because of the effect of coronavirus on their business, they can claim under the CJRS for periods of paid leave their employees take while on furlough, including for bank holidays such as Christmas Day or Boxing Day. Employers should not place employees on furlough just because they are going to be on leave.
If an employee is flexibly furloughed, you can count any time taken as holiday as furloughed hours rather than working hours. This means you can claim 80% of employees’ usual wages for these hours.
If a furloughed employee takes holiday, the company must pay their normal salary even though the CJRS claim will be limited as above.
EBS will be pleased to advise our clients as always.
