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Statutory Instruments
Employment
Made
20th April 2021
Laid before Parliament
21st April 2021
Coming into force
30th April 2021
The Secretary of State makes the following Regulations in exercise of the powers conferred by sections 228(4) and 236(5) of the Employment Rights Act 1996(1).
1.—(1) These Regulations may be cited as the Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) (Amendment) (No. 2) Regulations 2021 and come into force on 30th April 2021.
(2) These Regulations extend to England and Wales and Scotland.
2. The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020(2) are amended as follows.
3. In regulation 2(1), in the definition of “Coronavirus Job Retention Scheme”, for “30th April” substitute “30th September”.
4. In regulation 3(2)(a), for “30th April” substitute “30th September”.
5. For regulation 8(4)(b), substitute—
“(b)“Scheme cap” means the amount of—
(i)£2,500 per month (or the appropriate pro-rata), or
(ii)£576.92 per week,
as applicable, specified in relation to qualifying costs in the Coronavirus Job Retention Scheme(3).”.
Paul Scully
Parliamentary Under Secretary of State
Department for Business, Energy and Industrial Strategy
20th April 2021
(This note is not part of the Regulations)
The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (“the principal Regulations”) set out how a week’s pay is to be calculated in the case of an employee who has been furloughed under the Coronavirus Job Retention Scheme (“the CJRS”), for the purposes of calculating:
any statutory remuneration for time off to look for employment or arrange training,
any statutory notice payment,
any statutory sum resulting from a failure to provide a written statement of reasons for dismissal,
any statutory sum resulting from a failure to comply with an order for reinstatement or re-engagement,
any statutory compensation for unfair dismissal, and
any statutory redundancy payment,
to which in each case they are entitled. They also set out how a week’s pay is to be calculated for the purpose of deciding whether an employee is taken to be on short-time for statutory purposes.
The CJRS was established by the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction, given by the Treasury under sections 71 and 76 of the Coronavirus Act 2020 on 15th April 2020, and has been modified by the following directions given by the Treasury under those provisions:
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 20th May 2020;
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 25th June 2020;
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 1st October 2020;
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 12th November 2020;
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 25th January 2021;
the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 15th April 2021.
These Regulations make minor amendments to the principal Regulations consequent on the extension of the CJRS by the Direction given on 15th April 2021.
Copies of the Directions can be found at: https://www.gov.uk/government/publications/treasury-direction-made-under-sections-71-and-76-of-the-coronavirus-act-2020. Hard copies are available for inspection, free of charge, at the offices of HMRC at 10 South Colonnade, Canary Wharf, London E14 4PH.
No impact assessment has been prepared for these Regulations.
S.I. 2020/814, as amended by S.I. 2020/1296 and 2021/177.
See, in particular, paragraphs 9.5 to 9.7 and 9.12 of the Schedule to the Coronavirus Act 2020 Functions of Her Majesty’s Revenue and Customs (Coronavirus Job Retention Scheme) Direction given on 15th April 2021.
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