Guidance on the Extended (CJRS) Furlough Scheme

We have collated here the key information relating to the recently extended CJRS (furlough scheme) that is intended as general guidance. If you require specific legal advice, please book your Free consultation call with one of our team of employment law specialists.

Furlough Scheme:  An Important Change to Eligibility for TUPE Transferees

The Extended (CJRS) Furlough Scheme

With the introduction of new, tougher lockdown restrictions across the United Kingdom forcing many more business to close, many Employers will again be looking to take advantage of the Extended (CJRS) Furlough Scheme.

Below, we consider how the extended (CJRS) furlough scheme changed on 1 November and 1 December 2020.

How the (CJRS) Changed on 1 November and 1 December 2020

Since 1 November 2020, employers have been able to furlough employees on a flexible basis if they were on their PAYE payroll before midnight on 30 October 2020. The employer must have made a PAYE RTI submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for any employee being claimed for. Neither the employer nor the employee needs to have used the CJRS previously. 

The level of support available under the extended scheme, which currently runs until 30 April 2021, will initially mirror that available under the CJRS in August, with the government paying 80% of wages for hours not worked up to a cap of £2,500 per month for claim periods running to 31 January 2021. 

The grant and cap will be reduced in proportion to the hours not worked by an employee. Employers will need to cover employer NICs and employer pension contributions on all amounts paid to an employee (including those amounts covered by the CJRS grants). They will also need to continue to pay an employee for hours worked in the normal way. As previously under the CJRS, employers are still able to choose to top up employee wages above the scheme grant at their own expense if they wish. 

The government will review the operation of the CJRS in January 2021, to determine whether the economic circumstances are such that employers should be asked to contribute more. 

Since 1 December 2020, employees under notice are no longer eligible and from February 2021, HMRC will also start to publish information about employers who submit claims in December and January, in order to provide greater transparency and deter fraud.

The JSS has been postponed as a result of the extension of the CJRS. It is not currently known whether it will be introduced after the CJRS ends. The JRB was withdrawn by the fifth Treasury direction following the extension of the CJRS. 

HMRC published updated guidance regarding the extended CJRS on 10 November 2020, and the fifth Treasury direction on 13 November 2020 (dated 12 November 2020). Guidance for claim periods from February 2021 onwards, as well as a further Treasury direction, have not yet been published.

Here we provide more detailed Guidance on the Extended (CJRS) Furlough Scheme.

Advice & Guidance for Employers & Employees

The COVID-19 lockdown restrictions continue to present numerous and complex challenges for Employers and Employees alike. If you are experiencing challenges and require specialists advice, book a free consultation with our team of employment law specialists.

Impact of Tougher COVID-19 Restrictions for Employers

Following today’s announcements by the UK Government and Scottish Administration, we consider the workplace issues in connection with the increased COVID-19 restrictions, including the impact on non-essential offices.

Exceptions to the New Travel Restrictions in Scotland

What About Non-Essential Offices?

In short, a move to stricter Level 4++ restrictions should NOT impose any new restrictions that prevent non-essential offices from continuing to operate as they have been or prohibit those staff that have been attending work from commuting to work.

The default position from the Scottish administration has always remained that non-essential offices should remain closed and that staff should work from home where possible, but there is nothing in the legislation (original or recent) that requires non-essential offices and/or manufactures to close OR which restricts the movement of people either within or between different tier areas in the same way that Part 3, Regulation 5 of the now revoked Health Protection (Coronavirus) (Restrictions) (Scotland) Regulations 2020 set out the restrictions on movement which, in the early phases of lockdown, meant people could not leave their homes unless they were a key worker, an essential worker or otherwise had a valid reason to.

However, Schedule 5 of the latest legislation, which sets out in detail the Level 4 restrictions lists which types of businesses are required to shut, makes no reference whatsoever to non-essential offices, therefore, provided you have undertaken the appropriate H&S risk assessment and introduced all necessary controls and measures to protect your staff, there is no requirement to shut non-essential offices. 

What Issues Might Employers Face if Level 4 Restrictions Are Imposed?

Many of the issues facing employers as they stare down the barrel of further lockdown restrictions will be similar to those they faced when the impact of the COVID-19 pandemic started to impact on peoples’ lives and work back in March this year.

The immediate issue for employers of business workplaces that are not being specifically required to close is whether they should close voluntarily, in full or in part.  The fact that the Furlough scheme has been extended to the end of March 2021 means this is a viable option and one that would enable them to retain staff for however long the stricter lockdown restrictions remain in place.

We set out the key features of the extended furlough scheme here:  The Extended CJRS (furlough scheme)

However, if closing the workplace isn’t an option, other issues employers may face include the following:

  • Staff either being or living with a “clinically extremely vulnerable’ or ‘clinically vulnerable’ person.
  • Childcare issues and staff claiming they can’t return to work because schools are closed.
  • Staff simply being extremely anxious about the risk posed by COVID-19 and frightened of a return to the office.
  • Staff expressing concerns relating to health & safety and what they perceive to be the employer’s failure to follow government guidance.

The appropriate approach employers should take will depend on the specific reasons set out by each employee, but employers will need to proceed with caution to avoid the risk of possible claims at the Employment Tribunal.

Support from Employment Law Services (ELS)

England Introduces Tougher National Lockdown Restrictions

This evening Prime Minister Boris Johnson addressed the nation to confirm tougher lockdown restrictions will be introduced across England with effect from midnight 4 January 2021, suggesting England could “steadily” move out of the national lockdown from mid-February.

UK COVID-19 Lockdown Extended

Tougher Lockdown Restrictions in England

Most areas of England are already subject to strict tier 4 restrictions but despite this, COVID infections have continued to rise at an alarming rate with 58,784 new cases of the virus having been recorded today (Monday 4 January 2021).

The Prime Minister’s announcement this evening follows a similar announcement by Scotland’s First Minister, during which she confirmed tougher lockdown restrictions being introduced across Scotland from midnight on 4 January 2021.

Key Changes to Lockdown Restrictions in England

  • Whereas local restrictions applied in England previously, these new, tougher restrictions will apply nationally across the whole of England.
  • It will now be a legal requirement to stay at home and not leave home except for essential purposes, such as shopping for basic necessities (as infrequently as possible), to undertake exercise alone or with members of your household only for a medical need to provide care or help a vulnerable person, or to travel to and from work, only if absolutely necessary and only if you are unable to work from home.
  • Clinically extremely vulnerable people should begin shielding again and those not able to work from home should not go into work at all.
  • Primary and secondary Schools will be closed to the majority of pupils from 5 January 2021, except for vulnerable children and those of key workers, and will move to remote learning only.  Exams have been cancelled.

In making his announcement, the Prime Minister confirmed that the whole of the UK must now move to COVID Alert Level 5 “meaning that if action is not taken, NHS capacity may be overwhelmed within 21 days”.

Citizens across the United Kingdom are again being told to: 

“Stay at home. Protect the NHS. Save Lives.”

Impact of New Restrictions for Employers

Following today’s announcements, we consider some of the issues Employers might face due to tougher lockdown restrictions and what the new tougher restrictions might mean to Employers. 

We also set out the key features of the extended furlough scheme here:  The Extended CJRS (furlough scheme)

What About Restrictions Wales and Northern Ireland?

Wales imposed level 4 restrictions on 20 December 2020 and Scotland and Northern Ireland imposed tier 4 lockdown restrictions from midnight on 26 December 2020, but despite these restrictions COVID infections have continued to rise at an alarming rate with 54,990 new cases of the virus having been recorded on Sunday 3 January 2021. With the rest of the UK now subjected to even tougher lockdown restrictions similar to those introduced on 23 March 2020, it looks very likely that Wales and Northern Ireland will also introduce further restrictions and the respective administrations are meeting this evening to discuss the ongoing situation to decide what steps they will take.

From Darkness to Light – The Roll Out of the COVID-19 Vaccine

The newly approved coronavirus vaccine created by Oxford University and AstraZeneca is being rolled out across the UK today and the Prime Minister said that “if things go well”, the government expects to have offered a first vaccine dose to everyone in the four top priority groups in England by mid-February.  This includes vaccinating all residents in a care home for older adults and their carers, everyone over the age of 70 and all frontline health and social care workers.  The Scottish government has said it is “on track” to vaccinate everyone eligible in the first wave by spring 2021.

Support from Employment Law Services (ELS)

Advice & Guidance for Employers & Employees

The COVID-19 lockdown restrictions continue to present numerous and complex challenges for Employers and Employees alike. If you are experiencing challenges and require specialists advice, book a free consultation with our team of employment law specialists.

Scotland Introduce Even Tougher Lockdown Restrictions

In a statement to the Scottish Parliament, the Scottish First Minister has announced that effective from midnight 4 January 2021, Scotland will be subjected to even tougher lockdown restrictions.

Emerging from Lockdown – Guidance for UK Employers

As the number of confirmed COVID-19 cases rises to record levels, fuelled mainly by a new more transmissible variant of the virus, even tougher lockdown restrictions in the rest of the UK look imminent and further announcements are expected.

Tougher Lockdown Restrictions in Scotland

As the number of confirmed COVID-19 cases rises to record levels, fuelled mainly by a new more transmissible variant of the virus, the Scottish administration has conceded that NHS Scotland services are struggling to cope and noted that if infection numbers continue to increase at current levels, there is a real risk the NHS will be overwhelmed, even with the existing contingencies and current level 4 restrictions, and this is why these tougher restrictions are necessary.

These new, tougher restrictions will remain in place until at least the end of January but may be extended if necessary.

Key Changes to Lockdown Restrictions in Scotland

In summary, these key changes will apply to those parts of Scotland currently in tier 4 restrictions (mainland Scotland) and those that will most adversely impact Employers in Scotland are as follows:

  • It will now be a legal requirement to stay at home and not leave home except for essential purposes, such as essential shopping, exercise or travelling to work where it is not possible to work from home.
  • The default position is that those who can work from home must do so, and nobody should travel to work unless it is not possible to work from home.
  • Strict travel restrictions will remain in place and travel between local authority areas remains unlawful, except where travel is for essential purposes.
  • Anyone previously required to shield and not able to work from home should not go into work at all. The chief medical officer will write to those concerned.
  • Schools will remain closed to the majority of pupils until 1 February and this will apply to all pupils – except vulnerable children, and children of key workers. It includes nursery schools, as well as primary and secondary schools.  This decision which will be reviewed in mid-January.

Impact of New Restrictions for Employers

Following today’s announcements, we consider some of the issues Employers might face due to tougher lockdown restrictions and what the new tougher restrictions might mean to Employers

We also set out the key features of the extended furlough scheme here:  The Extended CJRS (furlough scheme)

What About Restrictions in England, Wales and Northern Ireland?

Most areas of England are now subject to tier 4 restrictions, Wales imposed level 4 restrictions on 20 December 2020 and Northern Ireland imposed tier 4 lockdown restrictions from midnight on 26 December 2020, but despite these restrictions COVID infections have continued to rise at an alarming rate with 54,990 new cases of the virus having been recorded on Sunday 3 January 2021.

Support from Employment Law Services (ELS)

Advice & Guidance for Employers & Employees

The COVID-19 lockdown restrictions continue to present numerous and complex challenges for Employers and Employees alike. If you are experiencing challenges and require specialists advice, book a free consultation with our team of employment law specialists.