Bespoke HR Consultancy
Last updated 27/10/20
A new ‘Job Support Scheme’ has been announced and it runs for 6 months from 1 November 2020.
This does not replace the Coronavirus Job Retention Scheme (JRS) but is a new scheme from the government supporting the wages of people in work. The scheme will allow employers to keep employees employed on shorter hours rather than making redundancies.
To qualify for the scheme, employees will need to work at least one-third of their usual hours which is paid by the employer. Pay will then be topped up by both the employer and the government. The employer and the government will each pay one third of the employee’s usual pay for the remaining hours not worked. The government contribution will be capped at £697.92 per month. The government will not cover Class 1 employer NIC or pension contributions, which remain payable by the employer. Employees will therefore receive up to 77% of their normal salary.
All SMEs are eligible and larger businesses where turnover has been impacted by Covid-19. This new scheme applies to all employees even if they were not previously furloughed but they must not be on a redundancy notice. To be eligible employees must have been employed and on pay roll on or before 23 September 2020.
The key points are:
There is a full guide to the scheme on the .gov web site which helps and further guidance is expected. If you have any queries or need help with this please contact Ray Howard at QHR Solutions who will be happy to help as usual.
On 22nd October 2020 the Government announced some changes to this scheme – these are important changes as follows:
To qualify for the scheme the employee will need to work a minimum of 20% of their usual hours, instead of one-third, and the employer will continue to pay them as normal for the hours worked. Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked – this will be made up of contributions from the employer and from the government. The employer will pay 5% of normal salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish. The government will pay the remainder of the 61.67%, of normal salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.
The government will not cover Class 1 employer NIC or pension contributions, which remain payable by the employer.
Except where marked the other rules will remain the same. As always please contact Ray Howard at QHR Solutions if you need help.