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Coronavirus Job Retention Scheme Is Changing

12.11.2020 · Posted in Legal Articles

Coronavirus job retention scheme was introduced to help the furloughed employees getting enough compensation according to their working hours from the employers. Under this scheme, employers are eligible on certain conditions to claim for the compensation wages for the employees that are on leave due to coronavirus. Companies who cannot maintain the workforce due to the financial impact due to the viral outbreak ad lockdown situation can furlough some of their employees. The last date to apply for CJRS was due 1st November 2020 that has recently been changed after the addition of new rules and regulations. Any employer who wanted to apply for the scheme or already has applied for it should know about the recent changes in the scheme. If you do not have a proper channel to learn about the latest updates for the scheme, you can stay in touch with your employment solicitors in Manchester for all the information.

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Flexible Furlough Scheme

After the initial announcement of CJRT V1 in March 2020, it entered in its second phase of CJRS V2 on 1st July 2020. According to the V2 flexible furlough scheme, employers and employees were allowed to choose any working and non-working pattern between them and the claim will be compensated accordingly. The only thing mandatory is to keep an accurate and up to date record of the furlough period and the working routines within that time. The record should not be maintained in days or weeks as the furlough period may be. It should be maintained according to the hours as the compensation amount will be calculated as per hour wage.

This phase of CJRS is called flexible furlough because it allows furloughed employees to work in different patterns so that the business keeps going. Other than that, it also paves the way for returning to work after the furloughed period if only proper health measures and social distancing is maintained.

What Has Changed from March to October?

From the initial stage of the coronavirus job retention scheme to the flexible furlough phase, certain changes were made in the terms and conditions that affected the compensation amount as well. CJRS V1 was from 1 March 2020 to 30 June 2020. According to this phase, only those employees who are fully furloughed and not allowed to work are eligible. The furloughed time for every employee was 21 days. No employee furloughed after 30th June was allowed to be admitted in the scheme. However, In October, the scheme faced a change where the original 80% grant for fully furloughed employees was cut short to 60% according to which they would be paid only £1,875.

CJRS V3—Changes from 1st November 2020- 31st March 2021

The CJRS V3 has changed recently as the chancellor has extended the last date to 31st March 2021. According to this extension, the compensation grant has also changed, and 80% of the hourly wage up of the furloughed employees will be given to them for the hours not worked. The gap between the amount given and their actual salary will be covered by the employers.

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