When you have asked lawyers about the extended Coronavirus Job Retention Scheme – the Furlough Scheme – you must forgive us if we could not answer all your questions. Although the extended scheme has been operating since 1 November 2020,...
On the Job Support Scheme was unveiled at the end of September, and I posted an article regarding the Job support Scheme on our website
Now the Government has changed the Scheme in response to concerns that there will be a large number of businesses who can operate safely but will experience lower demand over the winter months due to Covid-19.
- The furlough scheme expires at the end of October.
- The Government is replacing the furlough scheme with the Job Support Scheme to try to protect viable jobs.
- If your business can offer your staff some part time, and you have enough funding to pay your staff for their part time work and a little more, then this scheme may suit you.
The Key Points:
- Available to small and medium sized businesses without financial assessment (larger businesses must have experienced a drop in turnover)
- Employees must be on the payroll before 23 September 2020, and must not be on redundancy notice
- The Scheme will last 6 months from 1 November 2020
- Employees must work at least 20% of their usual hours and employers must pay for those hours
- For every normal hour of work not worked by the employee, they will be paid a total of two thirds of the usual hourly wage.
- Of this two thirds of the normal pay, the employer will pay 5% (capped at £125 per month), and the Government will contribute 61/67% up to a maximum of £1,541.75
- The employee will earn 73% of their normal wage.
- Employees can be moved in and out of the scheme, but each short time working arrangement must last at least 7 days
- The employer remains responsible for Class 1 employer NICS and pension contributions
- The payments from the Government are made in arrears, so the employee must have been paid by the employer, and the first claims can be made from 8 December 2020
HMRC will wish to see the agreement with the employee upon request, so although it is not clearly stated, you should have this agreement with your employee in writing. HMRC and have indicated that they will make claims information available to employees and will publish the names of employers who have used the scheme. It appears that HMRC plan to crack down on fraudulent or incorrect claims.