The Chancellor, Rishi Sunak, has announced a new job support scheme to replace the existing furlough scheme when it ends on 31st October 2020. This is a new top up scheme for those workers who have not been able to return to the workplace on a full-time basis because of coronavirus. The main points of the Job Support Scheme are as follows:-

  • It only applies to employees who can work at least one-third of their normal hours
  • Employees must be on the employer’s PAYE payroll on or before 23 September 2020
  • Employers will pay employees for the hours they work
  • The government and employers will then each pay one-third of wages for hours not worked
  • The government will pay an amount up to £697.92 per month
  • It applies to all small and medium sized businesses
  • Some larger business will be eligible if they meet a financial assessment test
  • It will be open to all employers whether they have used the furlough scheme or not
  • 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.
  • The scheme will open on 1st November 2020 and run until the end of April 2021. Employers will be able to make a claim from December 2020.

Companies who use the scheme can also still claim the Job Retention Bonus. The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. 

Should you require any further advice please contact our employment department at the following email addresses:-