04 Feb Job Retention Scheme extension – further clarification
With the government formally extending the Coronavirus Job Retention Scheme until 30 April 2021, as well as providing clarification on a few important points, the HR experts at Streetwise HR break down what this all means for employers.
So what’s changed?
It probably hasn’t come as too much of a surprise but, in light of a third lockdown and the continued impact of COVID, the government has issued a new Treasury Direction officially extending the furlough scheme until the end of April.
We know that things are tough right now and that many businesses are being hit with the financial burden of adapting to these difficult and uncertain times. It might feel like Groundhog Day at the moment, but there’s light at the end of the tunnel. The good news is, we’re here to help you with any ongoing questions you might have about furloughing your employees.
Let’s break it down.
The Job Retention Scheme – key points
- The claim rate of 80% of wages for hours not worked remains the same (up to a maximum of £2,500 per month)
- Employees serving notice (whether given by the employer or employee) cannot be placed on the furlough scheme. This is different from the previous guidance
How much to claim – a guide
Where an employee has variable hours or pay, the relevant reference month for calculating the amount of a claim in March and April 2021 will be March and April 2019. That’s because, in March and April 2020, employees might have already been furloughed and, as a result, may have been receiving lower payments.
Fixed hours and pay
For employees on fixed hours and pay, the relevant reference date is still 19 March 2020 or, if not employed at that time, 30 October 2020.
Making a claim under the scheme
To ensure you receive the furlough grant, you must submit your claim by the following dates:
- For February 2021: 15 March 2021
- For March 2021: 14 April 2021
- For April 2021: 14 May 2021
Amending a claim under the scheme
If you need to make an amendment to a claim, you must submit any changes by the following dates:
- For February 2021: 29 March 2021
- For March 2021: 28 April 2021
- For April 2021: 28 May 2021