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 third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% 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.
Things employers should be aware of to access the Job Support Scheme:
- Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme to be eligible for the Job Support Scheme.
- Large businesses will have to meet a financial assessment test, so the scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19.
- There will be no financial assessment test for small and medium enterprises (SMEs)
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
- After the first 3 months of the scheme the Government will consider whether to increase an employee’s minimum hours threshold (currently 1/3 of their normal working week).
- Grant payments will be made in arrears, reimbursing the employer for the Government’s contribution