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18.12.2020

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The Coronavirus Job Retention Scheme (‘furlough’, or the ‘CJRS’), which had been due to end on 31 October 2020, was subsequently extended until 31 March 2021. We refer to this as the ‘Extended CJRS’. On 17 December 2020, the Government announced that the Extended CJRS would continue for an additional month, until 30 April 2021, to allow businesses to plan ahead for the remainder of the winter and the New Year and give both businesses and employees greater certainty.

Under the Extended CJRS, the Government covers the cost of 80% of employees’ pay (up to the applicable cap) for non-worked hours, i.e. their furlough pay, with employers having to cover only the employer National Insurance and employer pension contributions. The Government had intended to review the Extended CJRS in January 2021, to examine whether economic circumstances are improving enough for employers to be asked to increase their contributions to employees’ furlough pay from February 2021. However, the Government brought this review forward and, on 17 December 2020, confirmed that it would maintain the level of its contributions towards employees’ furlough pay (at 80% of pay for hours not worked, up to the applicable cap) for the duration of the scheme.

Make UK has prepared the following template letters for employers to use when seeking employees’ agreement to full or flexible furlough under the Extended CJRS:

  • Extended CJRS full furlough letter – to place an employee on full furlough
  • Extended CJRS flexible furlough letter – to place an employee on flexible furlough

We have also prepared template letters for employers to use to recall employees from full or flexible furlough under the Extended CJRS:

  • Return from full furlough under the Extended CJRS letter – to recall an employee on full furlough to return to their normal working hours
  • Return from flexible furlough under the Extended CJRS letter – to recall an employee on flexible furlough to return to their normal working hours 

For further information on the Extended CJRS please see our FAQs on Furlough under the Extension to the Coronavirus Job Retention Scheme. 

Members can click here to download the above templates.

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