The UK’s Job Retention Scheme

On 20 March 2020 the UK government announced its Job Retention Scheme (JRS). The JRS allows businesses to place employees on furlough (temporary leave of absence) and reclaim 80% of their usual monthly wage costs from HMRC, subject to a cap of £2,500 per month. It has been possible to submit claims since 20 April 2020.

The Chancellor of the Exchequer announced on 12 May 2020 that the JRS will remain in place until the end of October 2020. It will continue in its current form until the end of July and then in a modified form for a further three months. Further details will be released by the end of May, but it is clear that it will be possible to furlough employees on a part-time basis after July. Employers will also have to make a contribution to employees' pay, so the government will no longer bear the full cost of the scheme.

This note will be updated as further information about the modified JRS becomes available.

Read more: The UK’s Job Retention Scheme

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