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COVID-19 Job Retention Scheme 

 

COVID-19 Job Retention Scheme 

27th January 2021

What is the job retention scheme?

The Coronavirus Job Retention Scheme (JRS) is a temporary UK government funded scheme open to all UK employers whose operations have been severely affected by Coronavirus (COVID-19).

The scheme allows employers to retain employees on their payroll and apply for a grant to cover 80% of their usual monthly salary for hours not worked (up to a max. of £2500 per month).  Employees can be furloughed for any amount of time and any work pattern.

How does the scheme work?

For an employer to claim through the scheme, they must:

  • have created and started a PAYE payroll scheme on or before 30th October 2020

  • have enrolled for PAYE online on GOV.UK

  • ensure the furloughed employee was on their PAYE payroll and included in a 'Real Time Information' (RTI) submission to HMRC on or before 30th October 2020 

  • have a UK bank account

  • continue to pay any employer National Insurance (NI) and pension contributions

Employees can work part-time whilst furloughed, also known as 'flexible furlough', but employers must pay them in full for the time worked.  The scheme is currently available until 30th April 2021.

 

Do employees need to agree to be furloughed?

Employers should:

  • get agreement in writing and be clear how much the employee or worker will get paid during their period of furlough

  • include details of the commencement date, pay, a review date, and how to keep in contact

  • keep furloughed workers on the employer's payroll and continue their employment contracts 

If an employee disagrees with their employer's decision about being selected for furlough or how much they will get paid, they should speak to their employer and try to come to an agreement in the first instance.

Further Information 

The COVID-19 situation remains fluid so we recommend you keep up to date by visiting the GOV.UK website.

In the meantime, if you would like any specialist advice regarding furlough and the job retention scheme contact us today for more information.

What our clients say

“Auriol has always been an excellent sounding board and trusted advisor.  Her support and advice not only helped me manage employee issues, but also recruit a strong team”

Stuart McNicoll, Nexus Community Leisure

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