Coronavirus Job Retention Scheme
To help businesses cope with the effects of the coronavirus on businesses, the government introduced the Coronavirus Job Retention Scheme (Furlough). Here, instead of businesses letting go of staff, they are able to claim up to 80% of their employee’s gross salary from HMRC.
The scheme will be closed to new entrants from 30 June 2020 and from then, only employees who have been furloughed for a full three weeks prior to the deadline (30 June) will be eligible for furlough. The deadline however for adding new employees to the scheme is 10 June 2020.The scheme has been updated and employers can bring back previously furloughed employees and be eligible to claim back furlough for hours not worked.
From July, employers will be able to bring back their previously furloughed employees and only be able to claim the Coronavirus Job Retention Scheme grant for the hours not worked.
Who is eligible for this scheme?
- Current employees
This scheme is only available to employees who have been unable to work because their current businesses have been impacted by coronavirus. This scheme has been deployed by the British government to help businesses retain their staff.
Employees eligible for this scheme are those who were employed on or before 19 March 2020 and were on the payroll and RTI submissions have been made to HMRC in respect of the employee on or before 19 March 2020. However if submissions to HMRC were made after 19 March 2020 the employee would not qualify for this scheme.
2.Redundant employees who are reemployed on or after 28th February 2020
If employees in the business have been made redundant or stopped working for the business on or after 28 February, the employer should be able to re-employ them, get them on the furlough scheme and claim back their wages from the date of furlough even though they have no plans of re-employing them until after 19 March 2020.
This is only applicable to employees who have been on the company payroll as at 28 February 2020 and an RTI submission has been made on behalf that employee on or prior to 28th February 2020.
3. Redundant employees who are reemployed On or after 19 March 2020
If employees in the business have been made redundant or stopped working for you on or after 19 March 2020, you able to re-employ them, put them on the furlough scheme and claim back their wages from the date of furlough
This is only applicable if the employees were on the business payroll as at on or prior to 19 March 2020 and an RTI submission has been made on behalf of the that employee prior to this date.
4.Fixed term contracts employees and ongoing contracts
These contracts can be renewed or extended, and furlough can be claimed if an RTI submission has been made to HMRC on behalf of the client on or prior to 19 March 2020.
5. Expired contracts
These employees can be rehired, and furlough can be claimed if their contracts expired:
- Prior to or after 28 February 2020 and an RTI submission has been made to HMRC prior to or after 28 February 2020.
Prior to or after 19 March 2020 and an RTI submission has been made to HMRC prior to or after 19 March 2020
** Same contracts that started and ended between 28 February and 19 March will not qualify for this scheme and this is applicable not only to fixed term contracts, but to all employees on other contracts.***
The scheme closes on 31 October, 2020. From 01 August, 2020, employer will start to contribute to the scheme, government will not be able to pay full amount.
If you require further advice regarding this, please contact us on firstname.lastname@example.org