The Job Support Scheme is replacing the Job Retention Scheme – Furlough. The scheme comes into effect on the 1st November 2020 and will run for a further 6 months.
The aim of the scheme is to support employers and employees who need to keep roles for the success of their business but cannot yet affords to keep them on full time. This means that to be eligible the employee must be in a ‘viable role’.
As such the employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them for the hours worked. Each month this amount can be increased and may vary month on month, however the minimum they must work is 20%.
Alongside working these hours, the employee will also receive up to a further 66.67% of their normal pay for hours not worked. Both the employer and the government will contribute towards this.
The pay is capped by the government, they will pay up to the remining 61.67% of the reference salary up to a maximum of £1,541.75 per month. Ensuring employees receive at least 73% of their normal wages, where the earnings are £3,125 or less per month.
An employee will be eligible is they were on the PAYE scheme between 6 April 2019 and 23 September 2020.
Businesses that have been legally required to close as a direct result of Coronavirus restrictions will also be able to use this scheme.
For each employee who is unable to work due to this closure and restrictions will receive two thirds of their normal pay. This will be fully funded by the government and processed through the employer unto a maximum of £2,083.33 per month. The employer can wish to pay more and top up pay if they would like.
This scheme will be due for review in January 2021.
We are currently waiting for further guidance (expected end October) from the Government on the steps to be taken by employers to calculate and make a claim through the Scheme.
For full information visit the government website: https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme
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