Job Support Scheme Announced
Rishi Sunak has announced various measures to support employers and employees, amidst the continuing Covid-19 Pandemic. Here are the key points of the Job Support Scheme:
- To be introduced from 1 November 2020 and to run for 6 months thereafter.
- Employees will need to work a minimum of 33% of their usual hours.
- For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month.
- Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped.
- The employer will be reimbursed in arrears for the government contribution.
- The employee must not be on a redundancy notice.
- Open to all employers with a UK bank account and a UK PAYE scheme.
- All Small and Medium-Sized Enterprises (SMEs) will be eligible; large businesses will be required to demonstrate that their business has been adversely affected by COVID-19, and the government expects that large employers will not be making capital distributions (such as dividends), while using the scheme.
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