Under measures launched by the Government in September, the new Job Support Scheme will continue to support businesses once the Coronavirus Job Retention Scheme concludes on 31st October.
Employers who identify staff as ‘Furlough workers’ and notify HMRC, will be eligible to reclaim up to 2/3 of the cost of an employee’s unworked hours* in a move to retain staff within the business, and avoid redundancies, during the Coronavirus pandemic.
*determined by whether they are claiming JSS Open or JSS Closed
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. The scheme will open on 1 November 2020 and run for 6 months.
The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
The Government will pay a 62% of hours not worked up to a cap, with the employer also contributing 5%. This will ensure employees earn a minimum of 73% of their normal wages, where the Government contribution has not been capped.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Our simple factsheet on the Job Support Scheme is essential for all business owners. Click on the link below to download your copy or share this page with your networks to ensure all employers are up to date with the changes.
