The Government has launched the Job Support Scheme to help employers once the furlough scheme ends on 31 October.
From 1 November, employers will be able to offer their staff shorter working hours and claim money to help pay for some of their employees’ wages. The scheme will run for six months.
The scheme is likely to halt many business’ redundancy decisions, but it will be less generous than the Job Retention Scheme and the Chancellor has made it clear that it will not be possible to save every job.
The scheme is open to all employees who were added to PAYE payroll on or before 23 September 2020.
Under the new Job Support Scheme, the company will pay employees for the hours worked. The cost of the hours not worked will be split between the employer, the Government, and the employee. This means that employees will earn a minimum of 77% of their normal wage where the Government contribution has not been capped.
Employees will need to work a minimum of 33% of their usual hours and must not be on redundancy notice. This means that 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.
The Government grant will not cover employer NICs or pension contributions.
Any businesses required to close their premises due to local restrictions will be able to receive further support.
In order to qualify, employees will need to be off work for a minimum of seven consecutive days.
The Government will pay two pay two thirds of their employees’ salaries, up to a maximum of £2,100 per month.
The employers will not be required to contribute towards wages and will only have to cover NICS and pension contributions.
Employers will be able to make JSS claims from December 2020.
We expect the Government to publish further details on the design of the JSS in late October
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