An updated Treasury Direction under sections 71 and 76 of the Coronavirus Act 2020 concerning the extended Coronavirus Job Retention Scheme (CJRS) was published on 12 November 2020. The CJRS was due to come to an end on 31 October 2020 but has now been extended until 31 March 2021.
Effective 1 November 2020, employees will receive up to 80% of their salary for hours not worked. Any government contribution will be capped at £2,500 per month per employee. There will be a review date of the scheme in January 2021 which may see employers taking on an increased financial contribution from 1 February 2021, if the economic and health outlook show signs of improvement. A further Treasury Direction is expected to be published confirming any changes to the rules in early 2021.
There are a number of important changes to the way the revised scheme works that started to come into effect from 1 November 2020. This includes the following: