IMPORTANT UPDATE: COVID-19

The Coronavirus Job Retention Scheme (“the Scheme”) is set to change again from 1 September 2020 in line with previous government announcements.

Effective from 1 September 2020, the government will reduce the percentage amount an Employer can claim under the scheme by 10% down to 70% of employee salary. Employees will still remain entitled to receive 100% of their usual salary unless they have agreed otherwise with their employer, subject to meeting the same requirements as before. Practically speaking, this means that it will be mandatory for Employers to top up the 10% shortfall. Employers who have agreed with their employees to top up the remaining 20% throughout the Scheme will now need to top up 30% of Employee salary.

In addition to the extra 10%, Employers will still remain responsible for pension and national insurance contributions (in accordance with the changes to the Scheme effective from 1 August 2020).

The payable salary cap will also be reduced to £2,187.50, down from the previous cap of £2,500.

Further reductions to the government contribution will come into effect from 1 October 2020 with the Scheme coming to an end on 31 October 2020.

If you are an Employer or Employee and you would like some further guidance or advice on your rights and responsibilities under the Coronavirus Job Retention Scheme, returning to work or reorganisation, please do not hesitate to contact a member of our experienced Employment team 01484 558060 or email gareth.dando@ramsdens.co.uk who will be happy to assist.