Essential support during COVID-19
Coronavirus Job Retention Scheme
There have been a number of questions about the Government’s job scheme initiative, now more commonly known as the Coronavirus Job Retention Scheme and as you will be aware it is a temporary scheme open to all UK Employers. The scheme is due to end on 30th September 2021, and it has been designed to support employers whose operations have been severely affected by Coronavirus (COVID-19).
Employers can either place employees on full furlough where no work is undertaken, or on flexible furlough where any amount of time can be worked. For furlough periods starting on or after 1st May 2021, you can claim for employees who were employed on 2nd march 2021 subject to the correct RTI submission.
Employers should pay an Employee’s normal rate of pay for any time worked on flexible furlough, and Employers can claim the following amounts for non-worked hours:
● June 2021: 80% of employee wages up to £2,500.00 a month
● July 2021: 70% of employee wages up to £2,187.50
● August and September 2021: 60% of employee wages up to £1,875.00
For the months of July – September 2021, Employers have to cover the ‘shortfall’ in Government contribution to ensure that Employees remain in receipt of 80% of wages up to £2,500 per month. This Employer contribution calculates as follows:
● July 2021: 10% up to £312.50
● August and September 2021: 20% up to £625
Throughout this period, Employers will have to continue to pay Employer’s income tax, National Insurance and pension contributions.
*The above information was updated on 8th March 2021 and will be updated once new information is available
BUT WHAT HAPPENS WHEN THE SUPPORT IS NO LONGER AVAILABLE?
With the scheme set to finish at the end of September, our team of HR & Employment Law Advisors will be on hand to support you, your business and your employees with all areas of:
● Managing the structure of your organisation where you have had to change and adapt to the demands of the pandemic
● How to manage an influx of ‘Flexible Working Requests’
● Employee retention
● Job share schemes
● Redundancy – team or individual
● Changes to Terms and Conditions of employment
● Requesting staff to take reduced wages
● Boosting staff morale, and bringing teams back together again
We will provide sound, knowledgeable and commercial advice in order to navigate you through this challenging time and beyond.
Get in touch to find out more.