Harrogate District Chamber of Commerce News

Coronavirus Job Retention Scheme (CJRS)

19 Jun 2020 by David R Bulmer

Changes From 1 July 2020 – Flexible Furlough Scheme (FFS)

As promised the government produced updated guidelines on Friday 12 June, explaining how the CJRS will change in the coming months.

From 1 July, employers can bring furloughed employees back to work for any amount of time and any work pattern, while still being able to claim 80% of salary on a pro rata basis based on the proportion of normal working hours not worked.

A simple example – Your employee works a 40-hour week and earns £2,000 a month - on furlough with no top up they would receive £1,600 a month. You bring the employee back to work for 10 hours a week, (a quarter of their normal working time) so you would pay them £500 a month for the work they carried out; and furlough them for 30 hours a week, so the monthly furlough pay would be £1,200 (£1500 x 80%). Total pay would be £1,700
Alternatively: https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/example-of-a-full-calculation-for-an-employee-who-is-flexibly-furloughed

 w.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your

You will recall that from August the amounts you will be able to claim will reduce as follows:

  • In August, the government will pay 80% of wages up to a cap of £2,500 and employers will pay ER NICs and pension contributions for the hours the employee does not work.
  • In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.
  • In October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. The cap will be proportional to the hours not worked.

Who can I claim for now?
As we have previously advised, you can only claim a further grant for a furloughed employee if:

  • they have previously been furloughed for at least 3 consecutive weeks taking place any time between 1 March and 30 June 2020. For the minimum 3 consecutive week period to be completed by 30 June, the last day an employee could have started furlough for the first time was 10 June.
  • a UK PAYE scheme started on or before 19 March 2020.
  • you submitted a report under the Real Time Information (RTI) reporting system for that employee on or before 19 March 2020.
  • you have a UK bank account.


Employees you wish to furlough from 1 July must meet the above criteria. The maximum number you can claim for in any single claim period commencing 1 July, cannot exceed the maximum number of employees you claimed for under any claim ending by 30 June. For example, if you had previously made a claim for 20 employees and a further claim for 30 different employees, the maximum number you will be able to claim for is 50 employees after 1 July.

There is an exception to this rule (isn’t there always): you can furlough an employee returning from statutory parental leave after 10 June even if you are furloughing them for the first time. You may do this provided that:

  • you have previously submitted a claim for any other employee in your organisation in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
  • the employee you wish to furlough for the first-time started maternity, shared parental, adoption, paternity and parental bereavement leave before 10 June and has returned from that leave after 10 June.
  • the employee was on your PAYE payroll on or before 19 March 2020. This means an RTI submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.



We know it is complicated but you can see the full guidance here 

https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme#deciding-the-length-of-your-claim-period