{"id":7482,"date":"2021-07-01T16:00:06","date_gmt":"2021-07-01T15:00:06","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=7482"},"modified":"2026-01-29T09:41:09","modified_gmt":"2026-01-29T09:41:09","slug":"coronavirus-job-retention-scheme-faq","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/coronavirus-job-retention-scheme-faq\/","title":{"rendered":"Coronavirus Job Retention Scheme FAQ: What it means for employers"},"content":{"rendered":"
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\n\t\t\t\t\t\tCoronavirus Job Retention Scheme FAQ: What it means for employers\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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Editor\u2019s note: The Coronavirus Job Retention Scheme concludes at the end of September 2021. The next stage of the scheme started on 1 July 2021. Read this article for more details.<\/em><\/p>\n\n\n\n

We\u2019re now in the final stages of the Coronavirus Job Retention Scheme (CJRS), the lifeline that many employers had been hoping for when it was announced back in March 2020.<\/p>\n\n\n\n

The CJRS means staff can be temporarily given a leave of absence while the government contributes to their salaries.<\/p>\n\n\n\n

This leave can be part time, or full time, depending on the reduced capacity of the business as a result of coronavirus.<\/p>\n\n\n\n

What this article covers<\/h2>\n\n\n\n

Below, we attempt to answer some of the essential questions around the CJRS along with how to make a claim.<\/p>\n\n\n\n

Please note that we refer to employees in a general sense. Within employment law, there is a difference between employees and workers.<\/p>\n\n\n\n

Generally speaking, the scheme applies to both (see question five Which employees are eligible under the Coronavirus Job Retention Scheme?<\/a>).<\/p>\n\n\n\n

This article provides answers to the following questions:<\/h3>\n\n\n\n

1. Is the Coronavirus Job Retention Scheme winding down?<\/a><\/p>\n\n\n\n

2. How much can I claim under the Coronavirus Job Retention Scheme?<\/a><\/p>\n\n\n\n

3. How long does the Coronavirus Job Retention Scheme last for? And how <\/a>long can I furlough staff for?<\/a><\/p>\n\n\n\n

4. Who pays the salaries for furloughed employees under the Coronavirus Job Retention Scheme?
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5. Which employees are eligible under the Coronavirus Job Retention Scheme?<\/a><\/p>\n\n\n\n

6. What employers or businesses are eligible to furlough and claim under the Coronavirus Job Retention Scheme?
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7. How do I claim under the Coronavirus Job Retention Scheme?
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8. If I\u2019ve reduced an employee\u2019s hours (or their pay), can I claim for them under the Coronavirus Job Retention Scheme?
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9. Do I have to furlough all my staff under the Coronavirus Job Retention Scheme?
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10. When do I get repaid the money for the Coronavirus Job Retention Scheme?
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11. What adjustments do I have to make in my payroll run for furloughed employees under the Coronavirus Job Retention Scheme?
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12. How much do I have to pay my staff via the Coronavirus Job Retention Scheme?
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13. What happens to pension payments under the Coronavirus Job Retention Scheme?
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14. What taxes are paid with the Coronavirus Job Retention Scheme?
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15. How are benefits-in-kind treated under the Coronavirus Job Retention Scheme?
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16. Can I charge my employees a fee to administer the Coronavirus Job Retention Scheme?
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17. What checks will be in place for the Coronavirus Job Retention Scheme?
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18. Can agency staff be furloughed under the Coronavirus Job Retention Scheme?
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19. Can I furlough myself under the Coronavirus Job Retention Scheme?
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20. How do I tell staff they\u2019re furloughed under the Coronavirus Job Retention Scheme?
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21. Does furloughing via the Coronavirus Job Retention Scheme need a new employment contract?
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22. When does the Coronavirus Job Retention Scheme end?
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23. Can employees work while furloughed under the Coronavirus Job Retention Scheme?
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24. How are staff on statutory leave or pay affected by the Coronavirus Job Retention Scheme (e.g. maternity leave)?
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25. What happens to employee annual leave during furloughing via the Coronavirus Job Retention Scheme?
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26. Can I use the Coronavirus Job Retention Scheme funds to make somebody redundant?
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27. Are charities allowed to use the Coronavirus Job Retention Scheme?
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28. Can an employee demand or ask to be furloughed under the Coronavirus Job Retention Scheme?
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29. Are there any commitments at the end of the Coronavirus Job Retention Scheme?
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30. How long do I have to keep documents relating to my Coronavirus Job Retention Scheme application?<\/a><\/p>\n\n\n\n

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Download your free Managing Uncertainty guide to help you create business continuity plans that keep your company moving during uncertain times<\/a><\/div>\n<\/div>\n\n\n\n

1. Is the Coronavirus Job Retention Scheme winding down?<\/h2>\n\n\n\n

It\u2019s been widely reported in the media that the CJRS is winding down.<\/p>\n\n\n\n

In actual fact, nothing\u2019s changed. It\u2019s always been planned that the final month of the scheme would be September 2021.<\/p>\n\n\n\n

It\u2019s simply that the scheme now requires increased employer contributions to the furloughed employee\u2019s salary.<\/p>\n\n\n\n

Up until 30 June 2021, employers could claim up to 80% of a furloughed employee\u2019s usual salary for the time they aren\u2019t working, capped at \u00a32,500.<\/p>\n\n\n\n

Employers were required to contribute all employer National Insurance contributions (ER NICs) for the unworked hours claimed for, and also the minimum mandatory (auto-enrolment) pension contributions for the employee.<\/p>\n\n\n\n

However, from 1 July 2021 onwards, in addition to NICs and pension contributions, businesses are required to contribute to the payment for the furloughed hours.<\/p>\n\n\n\n