The Coronavirus Job Retention Scheme (CJRS) commonly known as the furlough scheme was due to come to an end on 31 October 2020 but has now been extended until 31 March 2021. Effective from 1 November 2020, employees will receive up to 80% of their salary for hours not worked. There will be a review date of the CJRS in January 2021, which may see employers taking on an increased financial contribution if the economic and health outlook of the country show signs of improvement.
It is important that employers are aware of the rules for deciding the length of any claim period. The claim period is made up of the days that you are claiming a grant. The start date of your first claim period is the date your first employee was furloughed.
Claim periods starting on or after 1 July 2020 must start and end within the same calendar month. All claim periods starting on or after 1 July 2020 must last at least seven days. You can make a claim for less than seven days if you are claiming for the first few days or the last few days in a month. However, you can only claim for a period of fewer than seven days if the claim period includes either the first or last day of the calendar month, and you have already claimed for the same employee for the period immediately before.
Employers should ensure they include all of the employees they want to furlough for each claim period, as they will not be able to make another claim for the same period or one that overlaps the claim period.
Employers can claim before, during or after they process payroll as long as the claim is submitted by the relevant claim deadline. Claims from 1 November 2020 must generally be submitted within 14 calendar days following the end of the previous calendar month. Payments will be made within six working days after submission of a claim.
