The Job Support Scheme will replace the Coronavirus Job Retention Scheme which closes on 31st October 2020. The Job Support Scheme will come into effect from 1st November 2020.
The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. Under the scheme, a grant is available from HM Revenue and Customs to reimburse the employer for a portion of an employee’s wage costs, provided that the employee is working a minimum number of hours.
employees must have been on their employer’s payroll on or before 23 September
2020 and the scheme is open to UK employers that are small or medium
sized or are large and have a reduced turnover because of coronavirus. Large employers will be assessed by a
the Job Support Scheme, employees have to work a minimum of one-third
(33%) of their usual contractual hours and will be paid their usual earnings by
their employer for these hours worked.
hours not worked, employers must pay the employee two-thirds of their usual earnings.
Employers must fund one-third of the employee’s usual pay for the unworked
hours. Employers are able to claim reimbursement from HM Revenue and Customs
for one-third of the employee’s usual pay for the unworked hours, up to a cap
of £697.92 per month. The remaining one-third of the employee’s unworked hours
are unpaid. This means that employees, whose earnings have not been capped,
will receive at least 77% of their usual pay. More details on this can be found
Businesses legally required to close
addition, the Job Support Scheme now provides financial support for
businesses that are legally required to close under new coronavirus
restrictions. For example, in a local
Tier 3 lockdown or national lockdown. In these circumstances, employers are
able to claim a grant from HM Revenue and Customs to cover 67% of employees’ pay,
up to a maximum of £2,100 a month per employee.
can claim for employees who do not work for at least seven consecutive days due
to the closure of the business. In this scenario, the employer is
responsible for paying pension and national insurance contributions but is not
required to contribute towards the employees’ pay. More details on this can be found at: https://www.gov.uk/government/news/job-support-scheme-expanded-to-firms-required-to-close-due-to-covid-restrictions
Job Retention Bonus
Government are also helping employers to avoid redundancies by offering employers
the one-off Job Retention Bonus.
Eligible employers will receive a £1,000 bonus for every employee who
has been furloughed but is continuously employed until the end of
January 2021. Eligible employers will be
able to claim this bonus in February 2021.
More details can be found at: https://www.gov.uk/guidance/check-if-you-can-claim-the-job-retention-bonus-from-15-february-2021
you would like to discuss this topic in more detail or would like more
information, contact Ramshaw HR today.