Under the terms of the Coronavirus Job Retention Scheme (CJRS) extension, employees will continue to receive 80% of their usual pay for hours not worked, up to a maximum cap of £2,500, and you will retain the flexibility to bring furloughed employees back to work on a part-time basis (flexible furlough) or furlough them full time (full furlough).
The government will pay the 80% and you will only be asked to cover employers’ NI and pension contributions for furloughed hours, which is effectively the same level of CJRS grant as applied in the month of August. You must also continue to pay the employee for any hours worked in the normal way.
The other key points are:
• the extended CJRS will operate in much the same way as the current CJRS, with employers being paid upfront to cover wage costs, but there will be a short delay in payment whilst the government updates its systems and so you’ll be paid in arrears for that period
• all employers with a UK bank account and UK PAYE scheme can claim the extended CJRS grant – neither you nor the employee needs to have previously used the CJRS