Does a business have to show a downturn in work to avail of the extended CJRS?Posted in : First Tuesday Q&A NI on 2 February 2021 Issues covered: Coronavirus Job Retention Scheme; Extended CJRS
The Treasury Direction for the extended CJRS states that the scheme applies to employees "whose employment activities have been adversely affected by the coronavirus and coronavirus disease or the measures taken to prevent or limit its further transmission”.
The employer guidance also states that employees can be furloughed if employers “cannot maintain your workforce because your operations have been affected by coronavirus”.
The employee guidance states:
"The scheme is designed to help employers whose operations have been severely affected by coronavirus to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises that different businesses will face different impacts from coronavirus."
Taking into account the above guidance, it seems employers have a degree of discretion as to whether they wish to claim under the scheme. There is no specific requirement to show a downturn in work e.g. reduced turnover or profit.
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