Job Support Scheme – September 2020 Update

September 29, 2020

 

From 31 October 2020, the Coronavirus Job Retention Scheme will come to an end. A new six-month Job Support Scheme will then come into force from 1 November 2020.

Employment Law Partner Owen John has set out below what we know so far about the new scheme:

1. How will the Job Support Scheme work?

For the first 3 months of the scheme, an employee must work at least 33% of their usual hours. The Government will be considering whether to increase this threshold after 3 months of the scheme being in place.

2. Do I need to have previously used the Coronavirus Job Retention Scheme in order to benefit from the Job Support Scheme?

No, neither the employer nor the employer needs to have previously used the Coronavirus Job Retention Scheme in order to benefit from the Job Support Scheme.

3. How is eligibility determined?

All employers with a UK bank account and UK PAYE scheme can use the scheme. It appears that large businesses will need to meet a financial assessment test in order to establish that their turnover is lower now than before Covid-19 struck. There will be no financial assessment test for small and medium enterprises.

All employees who are placed on the Job Support Scheme must have been on an employer’s PAYE payroll on or before 23 September 2020.

4. For how long will the scheme run?

The scheme will be open from 1 November 2020 for a duration of 6 months.

5. How will payments work in practice?

The employer must pay for the hours worked by the employee, but for every hour not worked the Government and the employer will each pay one third of the employee’s usual pay. This will ensure employees earn a minimum of 77% of their normal wages. The level of grant provided by the Government will be calculated based on employee’s usual pay, capped at £697.92 per month.

Employers will be able to make a claim online through Gov.uk from December 2020 up until the end of April 2021. Payments will then be made on a monthly basis.

6. Can we decide to take someone of the Job Support Scheme if we become short staffed?

Yes, employees will be able to revert on and off the scheme and there is no requirement for them to be working the same identical pattern each month. However, each working arrangement must cover a minimum period of 7 days.

7. Can workers be made redundant whilst on the scheme?

Workers cannot be made redundant or given notice of redundancy during the period for which their employer is claiming the grant for them.

We will be providing updates on the scheme, as and when further guidance is announced.

 

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