The Coronavirus Job Retention Scheme (CJRS)

Coronavirus Job Retention Scheme (CJRS)
In a bid to support the economy and limit the loss of jobs, the UK government introduced the Coronavirus Job Retention Scheme (CJRS) starting March 2020. A temporary scheme, the initiative aims to cater to employers during the pandemic-stricken months by offering them financial support in terms of employee wages and salaries.
Essentially, the CJRS is targeted towards employers who are finding it difficult to maintain their employee payrolls during the stretch of corona-induced business drought by giving them the opportunity to claim government grants. In doing so, these grants act as a supplementary amount that employers can use to cover their salary costs.
Initially, the scheme was introduced as a four-month initiative. However, the rise of COVID-19 drove government officials to make the decision to extend this period to the 31st of October 2020. This extension, though, was not without some revisionary measures.
Coronavirus Job Retention Scheme (CJRS) – Revisions
While the state strived to support the economy during this trying time, any and all sorts of financial support had to be kept under check and balance. To prevent a deficit from forming in the country’s budget, the UK government implemented two major changes to the scheme, namely:
- As of the 1st of September 2020, the scheme payout will consist of 70% of the employee’s total wages with an upper limit of £2,187.50 for hours on furlough
- As of the 1st of October 2020, the scheme payout will consist of 60% of the employee’s total wages with an upper limit of £1,875 for hours on furlough
Some injunctions are also remained constant, such as:
- The employer continues to pay National Insurance and pension payments
- Employers are liable to contribute to each individual employee’s total wages so that their take-home amount is at least 80% of their normal wages with an upper limit of £2500 for the furloughed duration
The Coronavirus – Dealing with the New Normal
Of course, not all employees will be able to deal with work the same way. Some may be facing health complications – both related to and unrelated to the virus – others may have added responsibilities at home with schools being online, and yet still others may not feel secure enough to venture back into the in-person work model. All in all, it is a sensitive time, and adjustments will have to be made.
While it is impossible to cover all possible scenarios that could occur, here are some guidelines for what employers should do in the following circumstances:
Annual Quarantine Leave
Many employees may request for their annual leave to be granted so they can continue to quarantine, especially if they have substantial leave days remaining. In such a case, the employer is at liberty to deny this request if the length of the employee’s leave is one that cannot be accommodated.
The best course of action would be to make work from home a feasible possibility. However, if this is not doable, then employers should look towards other arrangements and study the circumstance as some cases would qualify for paid leave.
Corona-induced Family Responsibilities
Any parent knows just how tough it is to maintain a work-home balance, but COVID-19 has made matters even more serious. With school lockdowns lifting, there is always the possibility of children having to quarantine if they are deemed to be at risk of having been in contact with an infected person. If this happens, the employee will also have to quarantine for two weeks to ensure that they don’t spread the possible contracted virus.
In such a situation, employees should continue to work from home. However, if this is not a viable possibility, then their situation will fall under the ambit of family leave policies. Typically, this consists of up to four weeks of unpaid leave annually. Some companies also have a dependent leave policy in place, which makes for paid leave to be availed in special cases. So, the employee should discuss what policy is applied and take the best possible route.
Reluctance to an In-person Return to Work
It is understandable that not all employees would be willing to return to their offices once the lockdown lifts. Many would have lost loved ones to the virus, and some would have themselves recovered from the condition, making them afraid of a return to normal human contact. It is up to the employer to satiate any concerns that the employee might have and to try and work them out to the best of their ability.
If the reason for reluctance is a lack of childcare arrangements or vulnerable health conditions, then all possible arrangements should be made to make work from home a possibility. However, if this cannot be done, then other avenues need to be explored, such as leave or furlough.
Similarly, employers should also show a bit of flexibility in terms of changing work hours to make matters easier for their employees or offering them a period of unpaid leave. However, if push comes to shove and a middle way cannot be reached, then employers can withhold salaries until the worker reenters work.
So, while the coronavirus is showing no signs of truly disappearing, people are adapting to this new normal at an increasingly fast rate, and the job sector is not one to be left behind.
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