Following concerns from many HR professionals that the end of the CJRS could result in mass redundancies, the Chancellor revealed in Parliament a new Job Support Scheme.
Taking inspiration from countries such as Germany, the new scheme will be similar to a wage subsidy programme.
The Job Support Scheme will pick up exactly where the CJRS left, aiming to protect vital jobs in businesses that are facing lower demand over the coming winter months due to COVID-19.
Starting on 1 November, the new scheme will run for six months, and during this time employers will continue to pay employees for any time worked.
However, the cost of hours not worked will be split between:
The Government outlined that they would pay a third of the hours not worked up to a cap and will require employers to do the same.
To be eligible, employees must work at least a third of their normal hours and be on the payroll on or before 23 September 2020.
These contributions, combined with the minimum working hours, means employees will receive at least 77% of their standard wage.
The Job Support Scheme will be available to all businesses with UK PAYE schemes and a UK bank account.
However, it has been stated that for larger businesses to claim the support, they will have to meet a financial assessment test to show their turnover is now lower than before experiencing difficulties from COVID-19.
The financial assessment test does not apply to small-and-medium-sized businesses.
We offer a comprehensive HR solution, IRIS Cascade, that can assist you in managing the people processes.
The software has a wide array of features that can support the flexible working required for this scheme, including: