The support available to employers under the Coronavirus Job Retention Scheme will continue to decease in September, as the scheme enters its penultimate month before closing at the end of October.

 

Employers who have furloughed employees should take the following changes into account:

 

• The grant support available under the Scheme will reduce again, with the Government contribution to wage costs dropping (from 80% up to £2,500 per employee) to 70% up to £2,187.50 per employee.

 

• Despite this decrease, furloughed employees must still receive 80% of their normal wages. This includes flexibly furloughed employees, who should receive 80% of their normal wages for the time they are furloughed, and their normal wages for the time they work.

 

• Employers must “top up” their furloughed employees’ pay to 80% up to £2,500 per employee and make employer NICs and pension contributions

 

• The grant support available for wage costs is set to decrease again in October to 60% up to £1,875 per employee.

 

• Employers will be able to claim a one-off bonus of £1,000 for each furloughed employee who remains continuously employed by 31 January 2020. The “Job Retention Bonus” will only be available for qualifying employees who earn at least £520 per month on average between the 1 November 2020 and 31 January 2021.

 

• The Government has not announced any alternative or replacement measures at this stage and we await future developments.

 

Please contact Jack jack.balmer@tughans.com or your usual Tughans contact, who can refer you to the employment team.

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.