Job Support Scheme – October 2020 Update

October 9, 2020

 

On Friday 9 October 2020, the Chancellor announced a further extension to the Job Support Scheme, which will take over from the Coronavirus Job Retention Scheme when it ends on 31 October 2020.

The latest updates on the new Job Support Scheme include:

  • The provisions will apply from 1 November 2020, once the current CJRS comes to an end

  • Employees who work for companies throughout the UK that are forced to shut due to the COVID-19 restrictions will be paid two-thirds, or 67%, of their normal salary by the government

  • Employers will not be obliged to contribute towards wages but they will have to contribute towards NI and pension contributions

  • Employers are only eligible to claim for the grant whilst they are subject to restrictions and the relevant employees must be off work for a minimum of seven consecutive days

  • This scheme will run for a period of six months

  • The support will be reviewed in January 2021

  • Grants will be paid up to a maximum of £2,100 per employee per month

  • Payments to employers will be made in arrears, through a HMRC claims service that will be available from early December

It is currently understood that this scheme is most likely to target the hospitality industry, such as pubs and other recreational activities, that will have to close due to the higher risk that the Covid-19 virus could be spread in their venues.

It is not yet clear who exactly will be eligible and whether it will apply in relation to postcode.

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

 

Click here to download our Job Support Scheme FAQ Fact Sheet

 

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