New Job Support Scheme Announced
The Chancellor of the Exchequer has announced a new Job Support Scheme as part of a package of measures to support employment when the Coronavirus Job Retention Scheme ends next month. The scheme will begin on 1st November 2020 and run for six months, HM Treasury have published a fact sheet which can be found here: https://www.gov.uk/government/publications/job-support-scheme.
Under the Job Support Scheme, employers will continue to pay employees for time worked but the cost of the hours not worked will be shared between the Government, employer, and employee. The Government will pay a third of the cost of the hours not worked up to a cap, the employer will also contribute a third and the final third will be a wage reduction for the employee. This will ensure that employees will earn a minimum of 77% of their normal wages, unless the Government cap applies. To qualify for the scheme employees will have to work at least 33% of their usual hours and employers will not be able to use the scheme during periods of notice for redundancy. Further guidance on the calculation of eligible wages is expected to be published shortly.
If you have any queries regarding this communication or need employment advice please do contact a member of the Employment Team on email@example.com or by telephone on 0118 958 5611.