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February 5, 2021

Legal Issues – CJRS Rules Update

In anticipation of the Coronavirus Job Retention Scheme (“CRJS”) finally ending on 30 April 2021, the Government has published a new Treasury Direction with changes and extends the effect of the CJRS. Everything that has been said recently does suggest that 30 April 2021 really will be the end of the scheme. More than a year will have passed by then and the fact that this is the 6th Treasury Direction to be published since CJRS started tells you everything about how long we have been living with it. Some significant actions seem likely to follow the expiry of CJRS when employers face difficult decisions about how to deal with employees they don’t have enough work for.

Many of the changes are technical but the following are worth noting :-

  • When making claims for March and April 2021, the reference salary for employees is based on March and April 2019 rather than March and April 2020. Recognising that the scheme will have been around for more than a year by that stage, this is necessary to prevent anyone who was furloughed in March / April 2020 having their lower furlough pay used as a reference salary;
  • The method for determining “usual hours” for claim periods occurring in March and April 2021 is also adjusted so the “relevant reference month” is either March or April 2019 instead;
  • To make sure payments are successful, the deadlines are:-
    • 15 March 2021 in relation to February 2021;
    • 14 April 2021 in relation to March 2021; and
    • 14 May 2021 in relation to April 2021.
  • If anything needs to be changed for a claim, the claim amendment deadline days are:-
    • 29 March 2021 in relation to February 2021;
    • 28 April 2021 in relation to March 2021; and
    • 28 May 2021 in relation to April 2021.

If you have any questions on any of the issues mentioned in the above article, please contact Russell Eadie.

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EH3 8HA