Everything you need to know about the Job Support Scheme
What is the new Scheme? The Job Support Scheme replaces the Job Retention Scheme (Furlough) which will come to an end on 31 October 2020. The Job Support Scheme involves the government supporting the wages of people in work, giving employers the option to keep people in work on reduced hours.
How does the Scheme work? Employees will have to work at least one-third of their normal hours, and this will be paid for by the employer. For every hour not worked, the employer and the government will each pay one third of the employee’s usual pay. The government contribution will be capped at £697.92 per month.
When does the Scheme start? The Scheme will commence on 1 November 2020 when the Furlough scheme ends and is currently expected to run for six months.
Who can use the Scheme? Employers must have a UK PAYE scheme in order to utilise the Job Support Scheme. All Small and Medium-Sized Enterprises will be eligible for the Scheme; however large businesses will be required to demonstrate that their business has been adversely affected by COVID-19. If large businesses do utilise this Scheme, they must not be making capital distributions.
Can any employees be put on this Scheme? Employees must have been on the employer’s payroll (and as with the Furlough scheme must have been on the Real Time submission) on or before 23 September 2020. There is no requirement they must have been on the Furlough scheme. Employers cannot claim through this Scheme for employees that are working their redundancy notice.
What hours does an employee have to work? An employee will need to work and be paid by the employer for at least 33% of their normal contractual hours (this is expected to increase in months 4 – 6 of the Scheme). However, the working pattern can vary, but each working arrangement must cover a minimum period of 7 days.
What does the contribution cover? The government will pay one third of the employee’s usual wages for every hour not worked, and “usual wages” is expected to be a similar methodology to the Furlough scheme. The government contribution will not cover Class 1 employer NIC or pension contributions, however as the employer you are still required to make these payments.
For any further information on the new Job Support Scheme, redundancies or any other employment matter, please contact us on [email protected] or 0330 088 2275.
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