What next? The Job Support Scheme
The Chancellor announced a new funding scheme that will replace furlough and is designed to help employers pay the wages of staff who are working reduced hours.
As the Job Retention Scheme ends on 31st October, the Job Support Scheme will commence on 1st November 2020.
This is how it will work:
- The scheme will last six months.
- All Small and Medium-Sized Enterprises (SMEs) will be eligible.
- UPDATE – In order to be eligible for payment, employees must work at least20% of their normal hours (previously it was 33%). This means a full time employee can only work one day a week to qualify.
- Hours worked will be paid as normal by the employer.
- UPDATE – For each of the remaining hours not worked, the employer has to only pay a 5% contribution towards the cost. Previously this was 33%.
- The government contribution will be capped at £697.92 per month.
- The employer will be reimbursed in arrears for the government contribution.
- Employees on the scheme can’t be on notice of redundancy.
Employers will continue to receive the £1,000 Job Retention Bonus.
Aimed at supporting ‘viable’ UK employers who face lower demand due to COVID-19, it will be available to all employers with a UK bank account and a UK PAYE scheme.
Large businesses can apply, however they will need to show that their business has been adversely affected by COVID-19.
If you would like advice or assistance on this, or any other employment related matter, please feel free to contact us.Posted on: 25/Sep/2020 Posted in: Uncategorised