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Job Support Scheme: Treasury factsheet on how it works Job Support Scheme: Treasury factsheet on how it works

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Sep 20

Job Support Scheme: Treasury factsheet on how it works

Written by Harjeet Nangla
Associate

DDI: 01423 726610
E: harjeet.nangla@raworths.co.uk

Information correct as at 24 September 2020

Following the Chancellor’s announcement today (24 September 2020) regarding the new Job Support Scheme after the ending of the furlough scheme, the Treasury have published a factsheet to explain how it will work.

Some key points to note:

  • The new scheme will start from 1 November 2020 and run for six months
  • The scheme will cover hours not worked by the employee rather than hours worked
  • For the time worked, employers must pay employees their normal contracted wage
  • For hours not worked, the burden of cost will be split between the employer, the Government (through wage support) and the employee (through a reduction of wages). The aim is that the employee will keep their job and receive a minimum of 77% of their normal wages where the contribution to be paid by the Government has not been capped
  • The Government will cover up to a third of the cost of hours not worked by the employee up to a cap of £697.92 a month, and the employer will cover up to a third of the hours not worked
  • All employers (with a UK bank account and PAYE system) can access the scheme, even if they have never used the Coronavirus Job Retention Scheme (“CJRS”). Large business however will have to meet a financial assessment test
  • The scheme will only apply to employees who are on the employer’s PAYE systems on or before 23 September 2020 and for the first three months of the scheme the employee must be working at least 33% of their usual hours in order to claim. The scheme is not limited to those who accessed the CJRS
  • Employers cannot give employees notice of redundancy while claiming under the scheme
  • Employers using this scheme will also be able to claim the Job Retention Bonus if they meet the eligibility requirements, and
  • The grants will be payable in arrears meaning that a claim can only be submitted after payment to the employee has been made.

The Treasury factsheet provides a working example and sets out in more detail about how the scheme works and the eligibility requirements. There is no guidance yet on how ‘usual wages’ are to be calculated, but guidance on this is expected shortly.

Link to the factsheet: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/921389/Job_Support_Scheme_Factsheet.pdf

For further information, please contact our employment team on 01423 566 666

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

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