From 1st May, there are to be a number of changes to how the Job Retention Scheme works.
Eligibility for being furloughed
Currently, employees cannot be furloughed if they were not employed past 30th October 2020, and even then a PAYE Real Time Information (RTI) submission must have been made to HMRC between 20th March 2020 and 30th October 2020, notifying a payment of earnings for that employee.
This is to change. For pay periods that start on or after 1st May 2021, employees who were employed on 2nd March 2021 can be furloughed, provided the organisation has made a PAYE Real Time Information (RTI) submission to HMRC between 20th March 2020 and 2nd March 2021, notifying a payment of earnings for that employee. The shift in eligibility from 1st May 2021 onwards was confirmed in Government guidance on 3rd March 2021, presumably as a result of the extension of the JRS until the end of September 2021.
The knock-on impact of this is that organisations will be granted much more flexibility in furlough decisions in the future; they will be able to furlough those who were recruited between 31st October 2020 and 2nd March 2021, meaning the scope for furloughing staff is going to be wider.
Organisations will not have to have previously claimed for an employee before 2nd March 2021 to claim for periods from starting on or after 1st May 2021
Calculating claims for periods staring on or after 1st May 2021
Due to the change in eligibility highlighted above, the government is outlining updated guidance on how to calculate furlough pay.
It should be remembered that the government will still provide 80% of furloughed staff wages for the time they are not working in May and June 2021. They are not due to start reducing the amount they provide until 1st July 2021.
Claiming for staff previously made redundant
For periods beginning on or after 1st May 2021, organisations will no longer be able to furlough staff that were previously made redundant.
Furlough after TUPE
From 1st May 2021, organisations are able to furlough employees if they were included on a PAYE Real Time Information (RTI) submission to HMRC on or before 2nd March 2021.