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A further Treasury Direction was released on 26 January 2021 which updates the Coronavirus Job Retention Scheme (CJRS). Many will be pleased to note that the latest Treasury Direction makes only a few minor amendments to the existing scheme.

The latest update covers the CJRS from 1 February 2021 to 30 April 2021. Employers are still:-

  • Able to claim up 80% of employees’ wages for hours not worked, capped to £2,500 per month;
  • Required to pay employer national insurance and employer pension contributions on any furlough pay;
  • Not permitted to claim furlough for employees on any period of notice.

The deadlines to make and amend claims have changed. Employers should now note the deadlines to make claims are now as follows:-

  • February: 15 March 2021.
  • March: 14 April 2021.
  • April: 14 May 2021.

The method for calculating a non-fixed rate employee’s reference salary has also been changed. It is possible that some employees presently on furlough were previously on furlough in March and April 2020. In light of this, employers should refer back to employee’s pay for March and April 2019 instead. Similar amendments have been made to the scheme with regard to calculating usual working hours for non-fixed rate employees, with employers looking back to March and April 2019 for the purposes of this calculation.

While this note provides a brief overview of the update to the CJRS, we are able to provide employers with bespoke advice with regard furlough, managing their workplace in light of the pandemic and other employment queries. If you would like advice or have any questions, please get in touch with a member of our Employment team on 01484 821 500 or