As the Coronavirus Job Retention Scheme (CJRS) comes to an end on 31st October 2020, the Chancellor Rishi Sunak has today unveiled the government’s response to protect jobs and the wider economy over the winter period as we face a further 6 months of restrictions to suppress the spread of COVID-19.
WHAT SUPPORT WILL BE AVAILABLE?
The new Job Support Scheme is a short time working scheme which involves the government supporting employee’s wages if those employees are working. It gives employers the option to keep people in work on shorter hours, rather than make them redundant.
The Job Support Scheme will run for 6 months from 1st November 2020 and is the government’s answer to support people back to work.
WHAT CAN YOU CLAIM UNDER THE JOB SUPPORT SCHEME?
The key elements of the new Job Support Scheme that is designed to support viable jobs are as follows:
1. Employees who work at least one third of their normal working hours will be paid for those hours by their employer. For the hours that employees do not work, the government and the employer will each cover one third of the lost pay with a cap on the government’s contribution of £697.92 per month. H M Treasury says this will leave workers with 77% of their usual pay (where the government contribution has not been capped). Employers will be reimbursed in arrears for the government contribution.
2. The scheme will be open to all small and medium size businesses and to larger businesses who can prove that their turnover has dropped due to COVID-19.
3. All employers across the United Kingdom are able to access this scheme even if they have not previously claimed under the furlough scheme.
Further details of the new scheme will be issued in due course but it has already been confirmed that employers will be able to claim under the new Job Support Scheme and also claim the Job Retention Bonus of £1,000 per employee who has returned from furlough and has remained in employment until at least 31st January 2021.
WHAT ABOUT THE SELF EMPLOYED?
The Chancellor has confirmed that the self employed grant will be extended on similar terms and conditions to the new Job Support Scheme but further details and eligibility will follow.
IS IT ENOUGH?
There has been mounting pressure on the government for some time to confirm how it plans to support businesses in what is clear will be a difficult winter period for many. For some, the Job Support Scheme will have come too late if redundancies have already been made but whilst we await further details, it is already clear that employers will not be able to issue notice of redundancy to any employee on the Job Support Scheme which is in contrast to the terms of the CJRS. This leaves us with questions about whether the Job Support Scheme is enough to safeguard continued employment beyond April 2021 and to support businesses that are already struggling and simply cannot afford to retain their staff when the furlough scheme comes to an end?
If you have any questions about the end of the furlough scheme and the new jobs support scheme please contact Julie Edmonds, Head of Employment, by email on jedmonds@jpclaw.co.uk; telephone 0207 644 7286 or contact her on LinkedIn.
