The Chancellor of the Exchequer has made an announcement setting out the details of a range of schemes to support businesses in the next 6 months.
Less than two weeks after the announcement of the Job Support Scheme (“JSS”) and with less than 2 weeks until the Coronavirus Job Retention Scheme (“CJRS”) ends on 31st October’20, the Chancellor of the Exchequer has made an announcement setting out the details of a range of schemes to support businesses in the next 6 months.
Although it has been labelled by the Chancellor of the Exchequer as an expansion of the JSS, it looks very much like an extension of the CJRS, albeit in a more limited and targeted form.
So, as a result of recent announcements, what are the schemes that are available to employers over the next 6 months?
- Job Support Scheme
- Effective 1st November, it is designed to support the wages of employees who are in viable jobs, but on shorter working hours.
- Employees must work at least 1/3 of their normal working hours and be paid by their employer for those hours.
- For the hours not worked, the government and the employer will each pay one third of an employee’s salary.
- Job Support Scheme – Key details of “local furlough” scheme
- It will apply to employees who are unable to work as a result of their employer being forced to shut its premises as part of a local or national lockdown measure.
- The Government will pay two-thirds of the salary of those employees who are furloughed under this expanded JSS, up to a maximum of £2,100 per month
- The scheme will begin on 1st November 2020, available for 6 months; reviewed Jan’21
- Job Retention Bonus
- Employers can claim £1,000 per furloughed employee who is both brought back to work once the CJRS ends 31 October’20 and is continuously employed until 31 January 2021.
- To be eligible workers must be paid at least £520 per month on average between 1 November 2020 and 31 January 2021.
- The employer must have made claims for the employee under the CJRS.
- The employee must not be under notice of termination on 31 January 2021 and the employee RTI records must be up to date.
If you need any clarity on how these schemes effect your business, contact Willis Employment Services. The Government is due to provide further clarity and guidance on these schemes before the end of the month. Use the contact form below.
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