There have been further developments in relation to the Coronavirus Job Retention Scheme (CJRS). On 22 May 2020, the Chancellor’s second Treasury Direction was published which helps clarify several areas of the CJRS and introduces a requirement for a written furlough agreement.
Separately, the Government’s Coronavirus Statutory Sick Pay Rebate Scheme opened on 26 May 2020. This will help employers with fewer than 250 employees reclaim statutory sick pay for the first 14 days of sickness absence relating to coronavirus.
More recently, on 29 May 2020, the Government announced plans to gradually phase out the CJRS with it coming to an end completely on 31 October 2020. The last date on which employees can be placed on furlough leave is 10 June 2020.
From 1 July 2020 an employee can work part-time and remain furloughed part-time. Employers will have to pay in full for any hours worked by the employee, as well as tax and National Insurance contributions, and the Government will continue to pay for those hours not worked by the employee. Further details of how this will operate in practice are still awaited. It is important to note, however, that a new written agreement will need to be established between the employer and employee if this flexible system is to be operated.
From 1 August 2020 employers will need to fund employee’s national insurance contributions and pension contributions. They will no longer be recoverable under the scheme.
From 1 September 2020 the Government’s contribution to the salary of furloughed workers will be reduced from 80% to 70% (up to a maximum of £2,190 per month). Employer’s will have to top up to 80%.
From 1 October 2020 the Government’s contribution to the salary of furloughed workers will be reduced from 70% to 60% (up to a maximum of £1,875 per month).
Meanwhile, you may have heard about the protests Dyson faced from its staff after it ordered office-based personnel to return to their workplace. The workers argued that Dyson’s order contravened current Government guidance to “work from home, if you can”. Dyson responded by e-mailing staff, confirming that those who could work from home productively should continue to do so. This news has coincided with reports that the Government’s return to work package may entail new legislation introducing a right to work from home.
