The Job Support Scheme 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.
The company 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.
The key facts for the Job Support Scheme are:
- Employees must have been on the payroll on or before 23 September 2020.
- The employee must work at least 33% of their usual hours.
- For the hours worked, the employee must be paid their normal contracted wage.
- For the hours not worked, the employee will be paid up to two thirds of their usual wage subject to the government cap.
- The government contribution will be capped at £697.92 per month.
- The government contribution will cover wage costs only, not National Insurance or pension contributions.
Claims for the Job Support Scheme will be made through Gov.UK from December 2020.