COVID-19: Update to Coronavirus Job Retention Scheme

Please note: An article on the Job Retention Bonus has been posted since this article was published – please click here to view this article or see our previous post for full details on original scheme.

Closure of the first Furlough Scheme and the Opening of the Second Furlough Scheme
The full detail around the furlough schemes can be found below however it is very important that you understand and appreciate that the first furlough scheme will close on the 30th June and that in order to any employee or director to be furloughed as part of the second scheme – they must have already been furloughed as part of the first scheme.

It will not be possible to make a claim for a NEWLY furloughed employee/director from the 1st July.

This means that you have until the 10th June to take the opportunity of furloughing a member of staff (including directors) who has not previously been furloughed.  The minimum furlough period is 3 weeks.  The 10th June date provides enough time to qualify for the minimum furlough period prior to the closure of the first furlough scheme.

Second Scheme Headlines:

  • 10 June: last day an employer can put an employee onto furlough for the first time
  • 30 June: closure of the scheme to employers who have not already claimed
  • 1 July: employers given flexibility to bring employees back to work part-time whilst accessing CJRS for any of their normal hours not worked, starting so-called ‘flexible furloughing’
  • 31 July: end of current CJRS funding level (80% of salary up to £2,500 per month, plus employer NICs and auto-enrolment pension contributions funded)
  • 1 August onwards: CJRS funding remains at to 80% of salary/£2,500 per month but employers will be required to pick up the costs of the NICs and auto-enrolment pension contributions
  • 1 September onwards: CJRS funding reduces to 70% of salary/£2,187.50 per month.  As well as NICs and pension contributions, employers will be required to pick up 10% of salary costs
  • 1 October onwards: CJRS funding reduces to 60% of salary/£1,875 per month.  Employers will be required to pick up NICs, pension contributions and 20% of salary costs
  • 31 October: end of CJRS scheme
  • We are expecting more detailed information on the 12th of June.

Remember that employers will need to have an agreement with staff about flexible furlough arrangements.


Chancellor Extends Furlough Scheme
Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme
What work can I carry out as a furloughed Director?
Original Coronavirus Job Rention Scheme Details
Furlough Letter Template