HM Treasury has published a fact sheet providing further details about the Job Support Scheme recently announced by the Chancellor. The fact sheet should be read in full, but a summary of the key points is as follows:
- The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce.
- The scheme will open on 1 November 2020 and run for 6 months, until April 2021.
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
- All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
- Large businesses will have to meet a financial assessment test, so the scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19. There will be no financial assessment test for small and medium enterprises (SMEs).
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020.
- In order to support viable jobs, the employee must work at least 33% of their usual hours.
- For every hour not worked by the employee, both the Government and employer will pay a third each of the usual hourly wage, with the Government contribution capped at £697.92 a month. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.
- Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
