The End of CJRS, Remote Working & Redundancies 7th November 2020 Presenters The End of CJRS, Remote Working and Redundancies: What's in store for the months ahead? Karen Bennett Rachel Hynes Head of Sales and Senior Marketing The webinar will begin shortly… Marketing at BrightPay Executive at BrightPay Questions & Answers Questions Recording Email Paul Byrne Laura Murphy Victoria Clarke Handouts Resources Managing Director HR Manager & Training & Support at BrightPay Employment Law Expert Manager at BrightPay 1
The End of CJRS, Remote Working & Redundancies 7th November 2020 11 MARCH 20 COVID-19 was MARCH recognised as a The End of CJRS, Remote Working pandemic Coronavirus Job The Evolution Retention Scheme and Redundancies: What's in store announced of the CJRS for the months ahead? Coronavirus Job 31 Retention Scheme comes to an end OCT Faced with the prospect of job UK likely to see 450,000 redundancies losses, a new Job Support Scheme this Autumn alone – potentially up to was announced 735,000 redundancies New Job Redundancies Support Scheme The Job Support Scheme is designed on the Rise 9.6 million employees are still on to protect jobs where businesses are Announced furlough leave across the UK facing lower demand over the winter The scheme is currently supporting The scheme will replace the CJRS 1.2 million businesses from 1 November 2020 2
The End of CJRS, Remote Working & Redundancies 7th November 2020 Furlough Changes for October October 2020 CJRS Compliance Government will pay 60% of wages (up to £1,875) The End of the CJRS Today we will CJRS Changes discuss… Job Retention Bonus Scheme for October Employers must pay employer NIC & employer pension contributions Job Support Scheme Redundancies Employers are required to pay 20% of wages to make up 80% (up to How BrightPay Connect can help £2,500) HMRC have started clamping down After 31 October, the government on fraudulent furlough claims contributions will finish, and the scheme will come to an end £3.6 billion – HMRC estimate for Deadline for Compliance accidental or fraudulent claims The last day for making CJRS claims CJRS Claims with the CJRS for periods up to 31 October 2020 27,000 cases – Being examined is 30 November 2020 where overclaims may have occurred No further claims can be submitted If found liable, employers will have or amended after this date to pay back 100% via tax payments 3
The End of CJRS, Remote Working & Redundancies 7th November 2020 Employers urged to double check Fraud will be investigated by means any claims to ensure they’re correct of whistleblowers and HMRC’s computer system Notify HMRC of grant overpayments: Compliance Deadline for 90 days after date you received the Has the ability to flag anomalies in with the CJRS overclaims grant you were not entitled to claims by comparing them to industry and sector norms 90 days after date you received the grant you were no longer entitled to HMRC have sent letters to 3,000 20 October 2020 employers re. potential overclaims If you wish to make a repayment: When the scheme closes at the end of October, you must decide to either: Correct it in your next claim Get a payment reference number Bring employees back to work Repaying CJRS When the if not making another claim on their normal hours overclaims scheme ends... Repaying overclaimed amounts will Reduce employees’ hours prevent any potential tax liability Over 80,000 employers have repaid Terminate their employment over £215 million to date 4
The End of CJRS, Remote Working & Redundancies 7th November 2020 Physically returning to work… Employers can be fined for letting employees work when they should Government are continuing to urge be self-isolating people to work from home where Bring employees possible Fines for letting Employees must advise their employer back to work employees work if they are required to self-isolate and Working from home will remain for the period of isolation longer than initially expected Be aware of new regulations which Fines range from £1,000 to £10,000 were introduced on 28 September when employee is permitted to work To be eligible, employees must: Job Retention Bonus Scheme – introduced in July to help prevent Earn at least at least £1560 gross redundancies pay over the tax months November, December and January Job Retention Job Retention All businesses can avail of the bonus Bonus Scheme Bonus Eligibility Have been furloughed at any point for each employee brought back and legitimately claimed from furlough Be continuously employed until at least 31 January 2021 £1,000 per employee if brought back Not be serving contractual or from furlough for at least 3 months statutory notice on 31 January 5
The End of CJRS, Remote Working & Redundancies 7th November 2020 The bonus can be claimed from 15 February 2021 once accurate Bring employees back to work RTI data has been received on their normal hours Job Retention When the Employer bonus – no obligation Bonus Scheme scheme ends... Reduce employees’ hours for the money to be put towards the wages of staff Terminate their employment Employees are eligible provided they have been furloughed at some point Designed to top up the wages of The burden of paying for the hours employees unable to work full time not worked will be split between: Job Support Scheme and Job Bonus The Employer (One Third) Job Support Job Support Scheme can be claimed simultaneously Scheme Scheme The Government (One Third) (through wage support) The scheme will run for 6 months: 1 November 2020 to 30 April 2021 The Employee (One Third) (through a wage reduction) Businesses continue to pay their employees for the time worked 6
The End of CJRS, Remote Working & Redundancies 7th November 2020 All UK employers with a UK Bank Must have been on the employer’s account & PAYE scheme are eligible PAYE payroll on or before 23 September Don’t need to have previously availed Employees must be working at least Employer Employee of the Job Retention Scheme 33% of their usual hours Eligibility Eligibility Open to all SMEs – those with fewer Employees can rotate on and off the than 250 employees scheme on a different working pattern Larger businesses are eligible – Each short-time working arrangement must prove their turnover has fallen must cover a minimum of 7 days Employees must be paid their normal Employers must agree to new contracted wage for hours worked short-time working arrangements with their staff For time not worked, both the employer Working Some HR Minimum 33% and the government pay one third Changes must be made to the considerations Employer: employment contract and notified 1/3 of hours not worked The government contribution will be to the employee in writing Government: capped at £697.92 per month 1/3 of hours not worked Employees cannot be made redundant The grant will not cover employer NIC / put on notice if grant is being claimed or employer pension contributions 7
The End of CJRS, Remote Working & Redundancies 7th November 2020 Normal Working Week Working 5 Days Not Paid Not Paid Employer Pays £500 13.3% Not Paid Working 16.7% 22.3% 33% Employer Pays 13.3% Employer Working Pays 16.7% Job Support Scheme Working 60% Employer Government 50% Pays 22.3% Pays 13.3% Government Government Working 2 Days (40%) Not Working (60%) Pays 16.7% Pays 22.3% Employer Pays £200 Employer Pays £100 | Government Pays £100 BrightPay will include functionality ‘Usual wages’ calculations will to cater for the Job Support follow a similar methodology to the Scheme – Coming Soon Coronavirus Job Retention Scheme BrightPay’s Usual Wages Waiting for additional guidance For furloughed employees, the Functionality Calculations from HMRC to understand how it usual pay prior to COVID will be will be applied to payroll used to calculate the usual wages BrightPay will not be able to The amount they were paid whilst calculate the employee’s usual hours on furlough should not be used 8
The End of CJRS, Remote Working & Redundancies 7th November 2020 Employers can make a claim online through gov.uk from December 2020 Employers will be paid in arrears on a How to make monthly basis Awaiting detailed guidance… a claim The grant can only be used as reimbursement for wage costs incurred Claims can only be submitted after the payment has been reported via RTI The number of redundancies in the UK has accelerated at the fastest Bring employees back to work pace since the financial crisis on their normal hours When the Redundancies An estimated 200,000 jobs have scheme ends... Reduce employees’ hours on the Rise been lost so far this year Terminate their employment Redundancy related calls to ACAS have increased by over 160% in the past two months 9
Recommend
More recommend
