As of last week, we have some interesting amendments and changes to the Coronavirus Job Retention Scheme and to the SSP process in relation to the new track and trace system.
Here is our summary of the changes with the most vital points highlighted. As always, we are awaiting further clarification on some points and therefore the information we are providing is accurate as of today (June 1st, 2020) but is subject to change and amendment.
- Furlough scheme will remain until end October and then closes. There will be no extension.
- No changes to the current payment contributions from the government until end of July.
- Employers can bring an employee back part time from 1st July. Example. An employee works five days per week. The Employer has enough work for 2 days per week for the employee but not for five. The Employer pays usual rate (100% pay) for the 2 days that the employee is actively working and then the appropriate furlough rate for the remaining 3 days.
- The scheme will close to new entrants on 30th June, therefore the last date that someone can commence Furlough is 10th June.
- In August, Employers will be required to pay the Employees National Insurance and Pension contributions and will not be able to claim those through the CJRS rebate scheme.
- In September, the Furlough rate stays at 80% but HMRC will only cover 70% and the employer must cover 10% (plus NIC and Pension contributions). It is important to note that the maximum contribution levels will change from £2,500 to £2,190. Employers are required to top-up to 80% (or more, depending on what the employer agreed with the employee).
- In October, the Furlough rate stays at 80% but HMRC will only cover 60% and the employer must cover 20%. (Plus, NIC and Pension contributions). The government maximum reduces to £1,875.
- The furlough scheme will close on 31 October 2020.
Statutory Sick Pay
- Entitlement to statutory sick pay has been extended, under The Statutory Sick Pay (General) (Coronavirus Amendment) (No. 4) Regulations 2020, to people who have been told to isolate under the new ‘Test and Trace’ system. Other parts of Great Britain have similar, but not identical, Test and Trace systems.
- Accordingly, a person who has been notified that they have had contact with a person with coronavirus, and who is self-isolating for 14 days as a result, will be entitled to statutory sick pay.
- Another point of note is that the self-employment grant scheme is also being extended with new applications opening in August for a second and final grant. There will be parity with the reducing furlough scheme, paying 70% (not 80%) of average earnings up to £6,750.
For further information on the above areas please click on the relevant links below:
Job Retention scheme:
NHS Test and Trace Workplace:
Self-employed income support: