Well, we are not quite sure where to start! This weekend’s announcement about Lockdown #2, coming into effect from 00:01 on Thursday 5 November, has derailed plans for the Job Support Scheme (JSS) Open and JSS Closed, which were due to come into effect yesterday, 1 November.
Instead, the Chancellor has announced an extension to the Coronavirus Job Retention Scheme (CJRS), also known as the “furlough” scheme, which was due to end on 31 October, but was resurrected at the last minute during Saturday’s announcement.
We understand that the extension will be a return to August’s version of the CJRS, namely, that the Government will contribute 80% of usual wages for unworked hours up to a cap of £2,500 per month, but the employer will be required to pay NICs and pension contributions. We understand that the flexible CJRS will operate, so that employees can work part-time if possible. The scheme will be open to those on their employer’s payroll (and recorded on an RTI submission) prior to 23:59 on 30 October 2020. Further details of the scheme are awaited.
If you had planned to use JSS Open or JSS Closed, please speak to your legal advisor about putting in place a new agreement to record agreement to using CJRS instead. If you have already made employees redundant, in anticipation of the CJRS ceasing, it may be possible to re-engage dismissed employees in order to access the new CJRS. Please speak to your legal advisor for further information.
