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.