Coronavirus Job Support Scheme Extension
On 24 September 2020, Rishi Sunak announced the Government plans to create the Coronavirus Job Support Scheme which will replace the Coronavirus Job Retention Scheme which began in March 2020 to help businesses which had been impacted by the COVID-19 pandemic.
The Job Support Scheme will commence on 01 November 2020 and will be available to businesses for six months. A review of the scheme is scheduled in January 2021.
Under the Scheme, employees who are working 33% of their ordinary hours will be paid two third of their outstanding wages with the cost being split between the Employer and HMRC. However, in situations where a business is forced to close due to local or national Coronavirus Restrictions, employers will not be required to contribute towards their employees' wages (except the NICS and pension contributions). The Government will instead pay two thirds of the employees' salaries (up to £2,100 per month) and the employee will be required to forego the remaining third of their wages.
Companies will only be entitled to apply for the enhanced Scheme whilst they are subjected to the local or national restrictions and each employee must be off work for a minimum of 7 consecutive days.
Payments will be made to businesses in arrears via a HMRC claims service which means businesses will be required to make the initial payment to their employees and be reimbursed by HMRC at a later date.
If you need any guidance on the Coronavirus Job Support Scheme do not hesitate to contact a member of our Employment Team on 01522 814638.