The Job Support Scheme Latest Update

The Job Support Scheme Latest Update

The Coronavirus Job Retention Scheme will close on 31 October 2020.

From 1 November 2020 The Job Support Scheme will come into play. This 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.

How will this New Job Support Scheme work?

Providing an employee works for a minimum of 1/3 of their hours, the employer will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

Points to consider which are important:

  • Intended for SME businesses
  • Employee has to work a min of 1/3 of their normal hours (this will be reviewed after 3 months and might increase)
  • Employer has to pay NI & pension on the government’s %.
  • Staff must have been on payroll and RTI submission by 23 September 2020.

As an employer, how will you be able to make a claim on the Job Support Scheme?

The scheme will be open from 1 November 2020 to the end of April 2021.

Employers will be able to make a claim online through from December 2020. They will be paid on a monthly basis. Full details will be released in due course.

Grants will be payable in arrears meaning that a claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via an RTI return.

If you would like Haslers to assist you with the claim or if you would like further information about the scheme, please get in touch. 

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The Job Support Scheme Latest Update