Covid-19 UK: Furlough: Coronavirus Job Retention Scheme Opens And Further Guidance Issued

• Published date: 12 May 2020
• Author: Ms Frances Ross
• Subject Matter: Employment and HR, Coronavirus (COVID-19), Retirement, Superannuation & Pensions, Health & Safety, Employee Benefits & Compensation, Employment and Workforce Wellbeing
• Law Firm: Clyde & Co

The government's Coronavirus Job Retention Scheme (CJRS), which has been extended until the end of June, is now open for claims. This update explains what employers need to do to make their claim, and summarises the latest updates to HMRC's guidance for employers and employees on the scheme. It also covers the new guidance on the Coronavirus Statutory Sick Pay Rebate Scheme.

What do employers need to do to make their claim?

Claims under the CJRS must be made by employers online. The online service through which employers can claim is now open and the link to it can be found here.

The guidance for employers on the scheme (' Check if you can claim for your employees' wages through the Coronavirus Job Retention Scheme') and the guidance for employees ('Check if your employer can use the Coronavirus Job Retention Scheme') have been further updated.

HMRC has issued a step-by-step guide for employers to assist them when they make a claim under the scheme. This sets out the information that employers are required to provide and what employers need to do to make a claim.

A new guide ('Work out 80% of your employees' wages to claim through the Coronavirus Job Retention Scheme') has also been issued to assist employers in calculating how much they can claim under the CJRS. It also includes a calculator to help employers work this out and various examples on how to calculate claims.

This includes guidance on what amounts can be included in the 'reference salary' (of which 80% can be claimed subject to a cap of '2,500 under the scheme) and on how much employers can claim for employer NICs and employer pension contributions. It provides guidance on working out which payments can be taken into account (e.g. 'regular wages', non-discretionary overtime, non-discretionary commission payments) and which cannot (e.g. tips, discretionary bonuses, discretionary commission payments, non-monetary benefits and salary sacrifice schemes (including pension contributions) that reduce an employees' taxable pay).

The guide clarifies that 'reference salary' for employees returning from paid/unpaid family-related statutory leave, sick leave, unpaid sabbatical or unpaid leave should be based on their normal salary prior to that leave (employers should refer to the guidance for further information on this).

Employers should read the above links carefully before making a claim and ensure that they have all the required information ready.

• Employers can only claim for periods when their...