Tuesday, 29 June 2021

Changes to CJRS “Furlough” effective from 1 July 2021

 In March of this year it was announced that the Coronavirus Job Retention Scheme (CJRS) had been extended until 30 September 2021.


From 1 July 2021, government contributions will reduce to 70%, (up to a maximum of £2,187.50), for hours not worked by furloughed employees.  To remain eligible to receive this grant, employers will be required to contribute the additional 10% to ensure furloughed employees continue to receive 80% of their wages up to the £2500 cap.   Employers must also continue to pay the employees’ national insurance and pension contributions for the hours the employees are on furlough.


Employers can continue to ‘top up’, at their own expense, employees’ wages above the 80% total and £2,500 cap for the hours not worked.


In order to be eligible for the CJRS grant, employers must have confirmed to their employee in a written furlough agreement that they have been furloughed, when their period of furlough shall begin and how much they are likely to be paid.


At Martin Kaye Solicitors, our Employment Team have been successfully supporting businesses throughout the Coronavirus pandemic.  If you would like further guidance on the scheme or require up to date “furlough agreements”, then please call the team on 01952 566920 or email us at employment@martinkaye.co.uk.