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Third Direction issued for CJRS

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The Treasury has issued a further Direction under the Coronavirus Act 2020 ss 71 and 76, setting out the details of how the revised CJRS will operate, including flexible furloughing from 1 July onwards until the closure of the CJRS at the end of October.

Part 2, which represents the bulk of the new Direction, sets out the parameters for the revised scheme from 1 July, and covers the following areas (many in considerable detail):

  • entitlement to make a CJRS claim;
  • flexibly-furloughed employees;
  • family leave returners (who may qualify for CJRS claims);
  • armed forces reservist employees;
  • the nature of the required agreement between employer and employee;
  • CJRS claim periods;
  • qualifying costs (that may be part of a CJRS claim);
  • how to calculate ‘reference salary’ for various types of employment;
  • the meaning of ‘usual hours’ in various different employment types (fixed and variable hours etc);
  • statutory payments (and how they relate to the CJRS);
  • employer national insurance contributions (NICs);
  • CJRS claimable pension contributions;
  • succession to a business: where the new employer is not a qualifying employer (TUPE considerations); and
  • PAYE scheme reorganisations.

HMRC has also updated its CJRS guidance Check if your employer can use the coronavirus job retention scheme to cover the post-July changes, and to remind employers that 31 July 2020 is the last date to submit claims under the scheme for periods ending on or before 30 June 2020. For claim periods on or after 1 July 2020, employers are required to use a new template when claiming for more than 100 furloughed employees. The principal guidance has also been updated to cover military reservists returning to work after 10 June and who can be put on furlough for the first time after that date, subject to the employer having previously claimed under the CJRS for other employees.

Issue: 1494
Categories: News