The Job Support Scheme – which comes into effect on 1 November 2020 – when first announced, saw employers paying a third of their employees’ wages for hours not worked and required employees to be working at least a third of their normal hours.
A new scheme was announced yesterday which reduced the employer contribution to those unworked hours to just 5% and reduces the minimum hours requirement on employees to 20%, so those working just one day a week will be eligible.
The ENHANCED Part-time Job Support Scheme key facts
• Begins 1 November 2020 and runs for six months and replaces the furlough scheme
• Employees must work 20% of their hours (down from an originally stated one-third) to qualify
• Staff must have been on an employer’s payroll on 23 September 2020 to qualify for the scheme (redundancies since this date may be able to be reinstated)
• Staff will receive a 27% pay cut
• Government will pay 62% of unworked hours, capped at £1,541.75 per month
• Employer will pay just 5% of unworked hours – down from 33%
• All SMEs are eligible for the scheme
• Larger businesses must demonstrate a slump in turnover
• Firms on scheme cannot make staff redundant
• Cash grants of up to £2,100 a month are available for businesses in Tier 2 areas – mostly targeting hospitality and leisure firms
• These are available retrospectively for firms in areas already subject to tighter Tier 2 restrictions
Businesses that have not used the furlough scheme can also access the new scheme, but not all companies will be able to apply because larger companies can still only access the scheme if their turnover has fallen significantly as a result of the pandemic.
Companies must pay the full wage for hours worked. It will then have to contribute a small top up for hours not worked alongside the Government in order to receive the subsidy.
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