Coronavirus Job Retention Scheme which is aimed at helping UK employers to pay wages to employees who would otherwise be laid off as a result of the coronavirus (COVID-19) crisis has been updated. Find out the newest information in this blog post. 

The newest updates

• The scheme is extended by four months, until October
• The government will ask companies to "start sharing" the cost of the scheme from August. Employers currently using the scheme will then be able to bring furloughed employees back part-time.
• Around 7.5 million people are now covered by the scheme
• The scheme costs the Government £14bn a month.

About the scheme

The scheme is available for all UK businesses that have been severely affected by COVID-19 and thus cannot retain their employees. 

• The grant covers 80% of the usual monthly wage costs (up to £2,500 a month)
• The grant also cover associated Employer National Insurance contributions and pension contributions
• This is a temporary 3-months scheme starting from 1 March 2020 and might be extended if needed

Who is eligible for the grant?

All UK businesses that meet the following criteria are eligible for the grant:

• has created and started a PAYE payroll scheme on or before 28 February 2020
• has enrolled for PAYE online
• has a UK bank account

For which employees you can claim?

• Employers can claim for their employees who were on your PAYE payroll on or before 28 February 2020.
• All types of employment are valid, including full-time, part-time, agency, flexible or zero-hour contracts.
• Employers can claim for foreign nationals, too.

It is important to note that when employees who are on furlough cannot undertake work for the company. While an employee is on furlough, any critical business tasks can be allocated to other employees.

How to inform furlough employees?

• Employers have to discuss their decision to put some of the employees on furlough.
• Employers must inform their employees in writing about the decision to put them on furlough. The notice must be stored for five years.
• Employees placed on furlough cannot undertake work.

What is the minimum and maximum of the furlough?

• There is no maximum, however employees placed on furlough must be furloughed for a minimum period of 3 consecutive weeks.
• When they return to work, they must be taken off furlough.
• Employees can be furloughed multiple times, but each separate instance must be for a minimum period of 3 consecutive weeks.