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Job Support Scheme

The new job support scheme has been brought in by the UK from 1 November 2020 in order for the government to protect viable jobs in the wake of the Coronavirus pandemic.

The job support scheme will ensure that the government pays one third of employees hours up to a cap. This scheme should ensure that employees receive 77% of their normal wages.

Eligibility as an Employer

To claim under this scheme, you must be an employer with a UK Bank Account and have a UK PAYE reference. Small to medium sized companies will be able to apply immediately when the scheme opens however larger organisations will have to meet a financial assessment first to ensure they can apply.

Criteria

Employees must be on the payroll by 23 September 2020 to qualify they must work at least 33% (one third) of their contracted hours.

The employee can go in and out of the scheme but must spend at least 7 days in any one arrangement. For every hour that is worked, the employer and the government will pay 1/3 of the employee’s usual wage. The government contribution is capped at £697.92.

The monies will be paid in arrears and no national insurance or pension contributions will be paid by the government.

Employees who have previously been furloughed must have their pay calculated on their usual pay and not their furlough pay.

Employers must pay for all hours worked and then employers and the government will pay for the hours not worked.

It is not anticipated that employers will top up the pay and employees must work 1/3 of their usual hours in order to qualify, employers cannot make any redundancies whilst the employee is claiming.

The scheme will be opening from 1 November 2020 however the first claim cannot be made until after 1 December 2020 with the scheme closing at the end of April 2021. Any amounts received will be paid monthly in arrears.
For more information, please do not hesitate to contact us, or should you need any assistance with processing of your payroll this is a service we offer at a competitive price.