Update: Job Support Scheme announced today

Update following our earlier article here.

The Government have provided further detail on the ‘Job Support Scheme’ within a factsheet released by the Government earlier today. Fiona Mendel, Employment Associate highlights the additional key details. Headline points are:

1. The Scheme will open on 1 November 2020 and run for six months until April 2020.
2. The Scheme has been designed to protect ‘viable’ jobs whereby the employee must work at least 33% of their usual hours for the first three months.
3. The Company must continue to pay its employees for time worked, but the burden of hours not worked will be split between the employer and the Government, with the employee taking a wage cut.
4. The Government and employer will pay one-third of hours not worked so employees earn a minimum of 77% of their normal wages. The Government contribution will be capped at £697.92 per month.
5. For time not worked, the employee will be paid up to two-thirds of their usual wage.
6. The grant will not cover pension or class 1 employer national insurance contributions; these will still be payable by the employer.
7. All employers with a UK bank and PAYE scheme can claim the grant regardless of whether they have used the Job Retention Scheme before.
8. Employees will need to be on their employer’s payroll on or before 23 September 2020 and a Real Time Information submission must have been made by that date.
9. Large businesses will have to meet a financial assessment test in order to be eligible.
10. Employees cannot be made redundant or put on notice of redundancy during the period in which the employer is claiming the grant.
11. Grants will be payable in arrears in respect of any given pay period, after payment to the employee has been made.
12. HMRC will be checking claims made for fraudulent or incorrect information.
13. Employers must agree with their employees the short time working arrangement in writing and this must be available to HMRC upon request.

Further details will be set out in Government guidance shortly.

Should you have any queries on the above or require any employment related advice, please contact Fiona Mendel at fiona.mendel@seddons.co.uk or on 020 7725 8033 or Head of Employment, Helen Crossland at helen.crossland@seddons.co.uk or on 020 7725 8034.