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      Coronavirus Job Retention Scheme – 2021 update

      13 May 2021 by Aaron Pottle

      Aaron Pottle
      coronavirus job retention scheme faq

      As lockdown restrictions continue to ease across the UK, we take a brief look at the changes to the Coronavirus Job Retention Scheme (CJRS) and the impact this may have on businesses and individuals.

      How will the CJRS change in 2021?

      Most businesses will be familiar with the CJRS and many state that this has been a lifeline to avoid or at least reduce, the number of redundancies that might have otherwise taken place. However, as we transition into the second half of 2021, and social restrictions continue to ease, the level of support provided by the CJRS will begin to reduce until the scheme ends on 30th September 2021.

      From 1st July 2021, the level of grant will reduce on a monthly basis and employers will be required to contribute more towards furloughed employees’ wages. In order for employers to remain eligible under the scheme, you must continue to pay your furloughed employees 80% of their wages, up to £2500.00 per month.

      The table below details the periodical changes to the scheme:

      May June July August September
      Government contribution: wages for hours not worked 80% up to £2,500 80% up to £2,500 70% up to £2,187.50 60% up to £1,875 60% up to £1,875
      Employer contribution: employer National Insurance contributions and pension contributions Yes Yes Yes Yes Yes
      Employer contribution wages for hours not worked No No 10% up to £312.50 20% up to £625 20% up to £625
      For hours not worked employee receives 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month
      For hours not worked employee receives 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month 80% up to £2,500 per month

      Source: https://www.gov.uk

      What does the potential impact of the CJRS look like?

      Given the support provided by the government to this point, it is clear the true financial impact of the pandemic may not be fully felt for some time yet. Naturally, the hope is that businesses will recover during the summer months. However, many hospitality and tourism bodies are calling for an extra bank holiday in September citing financial concerns. Kate Nichols, Chief Executive of UK Hospitality, tweeted: “Hospitality and tourism has missed out on almost all bank holidays last year and the start of this – we agree, an extra Bank Holiday would be a boost to business, the economy, jobs, and investment”

      A recent BBC poll of 50 of the UK’s biggest employers revealed they do not plan to bring staff back to the office full-time. 43 of the 50 firms surveyed said they would embrace a mix of home and office working, with staff being encouraged to work from home two or three days per week.

      It seems change will continue to occur throughout the summer months as lockdown measures continue to ease and government support is gradually withdrawn. It seems probable that the new ‘normal’ will be markedly different from the pre-pandemic landscape. With many firms facing financial uncertainty and employers encouraging more flexible working patterns, it seems likely the biggest impact will be on the need for workplace premises, the people that fill them, and the resulting financial fallout.

      Should you require any further information or assistance please do not hesitate to get in touch. FJG’s friendly Employment Law team is available on 01206 700113 or by email [email protected].

      For more on Employment Law during the Coronavirus pandemic, visit our Coronavirus Legal Advice hub. 

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      We are welcoming clients back to our offices

      Differing tiers and three lockdowns later, Fisher Jones Greenwood Solicitors are now pleased to be able to welcome clients safely back to our offices.

      Remote working and the digitalisation of the way we work, have been key to keeping FJG and the rest of the country going.

      • We are now able to offer, pre-booked face-to-face appointments. Although, we are still able to offer remote appointments if preferred.
      • You can continue to visit our offices at any time to post any correspondence and documents through letterboxes.

      If you are visiting an FJG office, covid-19 safety rules of social distancing, hand sanitization, and the wearing of masks will still apply.

      • Please be aware you will also need to have your temperature taken on arrival.
      • There will also be protective screens in place to protect you and our staff.

      Please do not hesitate to contact your legal adviser by email or by telephone should you have any worries or concerns. Alternatively, please call our main switchboard number (01206 835300), and a message to return your call will be relayed to the relevant person.

      Best wishes
      Paula Cameron
      Managing Partner