As we previously reported, the COVID-19 pandemic has affected many employers and employees throughout Europe. Since mid-March 2020, the Government of the United Kingdom has implemented several measures and guidance to address the economic impact of the COVID-19 pandemic. Similar to other European jurisdictions, one such measure is the Coronavirus Job Retention Scheme (“CJRS”), designed to help employers retain their workforce. Currently, the CJRS provides partial subsidized wages to approximately 7.5 million UK employees across 935,000 employers. Recently, the UK has provided updates to the CJRS, including an extension of partial wage replacement grants and a shift toward allowing part-time work.
In late March 2020, Chancellor of the Exchequer Rishi Sunak announced the implementation of the CJRS. Under the CJRS, all UK employers with Pay As You Earn (“PAYE”) payroll schemes that were opened and in use on or before February 28, 2020 may apply for wage replacement grants to distribute to their furloughed employees. The CJRS recently has been extended to October 31, 2020.
