Furlough CJRS

As we continue to live through unprecedented times, the UK government has introduced a furlough scheme for all UK employers to participate in, avoiding mass redundancies due to the COVID-19 pandemic.

Furlough is a first of its kind in the UK, however, this resolution was used in the US back in 2013 after Congressional budget cuts and meant enforced leave without pay!

Thankfully, UK Chancellor, Rishi Sunak, hasn’t taken this approach and has backed all UK employers’ payroll with an 80% relief package capped at £2,500.

The Coronavirus Job Retention Scheme (CJRS) is an initiative introduced due to the Coronavirus pandemic causing for a need of social distancing. Businesses have been forced to close and halt trade to help combat the killer virus.

Whilst these measures have been enforced across the UK, employers have been given the option to place their employees on furlough and saving their jobs which would otherwise have been made redundant. However, this is not 100% bullet-proof as employers may deem it necessary to still undergo redundancies to ensure the business survival.

Employees earning less than £2,500 per month will be able to receive 80% of their salary for the hours not worked. Those with earning’s above £2,500 will only be able to receive government support of a maximum £2,500 which can translate into less than 80% of their salary. The employer is not obligated but may choose to top up their employees salaries by 20%.

Furlough (CJRS) has now been extended until March 2021.

Get in touch with us at MTD to find out if you are entitled to this scheme!