How to Furlough Employees and the Coronavirus Job Retention Scheme

Coronavirus Job Retention Scheme and Furlough Leave

In March 2020, the Coronavirus Job Retention (Furlough) Scheme (CJRS) was set up by the Government to support UK employers who were severely affected by coronavirus (COVID-19). It is a temporary wage support measure that is designed to support jobs and help employers facing difficulties in paying wages rather than laying off staff or making them redundant. The CJRS was due to finish on 31 October 2020 but the planned closure has now been postponed until 30 April 2021.

The Government originally intended to replace the CJRS with the Job Support Scheme (JSS) as of 1 November. The JSS has now been postponed.

The £1,000 Job Retention Bonus, which was due to be paid in respect of employees retained after furlough until the end of January 2021, has been withdrawn. Chancellor Rishi Sunak has said that a retention incentive will be “deployed at the appropriate time” instead.

Please note that this information is subject to change and so it is important to keep checking back for the most up-to-date information.

Updated guidance on the extended CJRS can be found here: https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

Part of the qualification process for the CJRS will require the employer to designate affected employees as ‘furloughed workers’, and to notify employees of this change. The following document is available in the Employment Document folder:

A Coronavirus Job Retention Scheme Furlough Leave Agreement , which can be used to seek employees’ agreement to the Company placing them on furlough leave.

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