With the Furlough Scheme ending on 31st October, the government have announced the Job Support Scheme.
Starting 1st November 2020 and lasting for 6 months the scheme is designed to protect viable jobs in businesses which have reduced trade over the winter months due to Covid-19.
How it works
Employers will continue to pay their staff for hours worked but, the cost of the hours not worked will be split between the company, the Government (through wages support) and the employee (through a wage reduction).
The Government will pay a third of hours not worked up to a cap of £697.92 per month. This will ensure employees will receive 77% of their normal wages.
The grant will not cover employer national insurance or pension contributions.
The grant will be payable in arrears meaning that a claim can only be submitted after the payment to the employee has been made.
Employees must be on an employer’s PAYE payroll on or before 23rd September 2020.
For the first three months of the scheme the employee must work at least 33% of their usual hours. After 3 months, the Government will consider whether to increase the minimum hour threshold.
Employees will be able to move on and off the scheme and do not have to be working the same pattern each month, but each working arrangement must cover a minimum period of seven days.
Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant.
If your business is affected or you would like to discuss any of the points above, please contact the office – details can be found our Contact Us page.