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The new Job Support Scheme will be introduced on 1 November 2020…
The Coronavirus Job Retention Scheme (CJRS) comes to an end on 31 October. As part of the Winter Economy Plan the UK Government announced is introducing a new Job Support Scheme which will run from 1 November 2020 until April 2021.
Any employers currently undergoing redundancy consultations should not ignore the announcement, given the duty on employers to explore all viable alternatives to redundancy for the process to be deemed fair.
The key highlights of the scheme are:
Where the Government contribution has not been capped, the effect of the Scheme is that employees will receive at least 77% of their pay. The table below illustrates some cost-sharing scenarios (assuming Government contributions are not capped) which are relatively complex:
Hours Employee Worked
Hours Employee Not Working
Employee Earnings (% of normal)
Gov't Grant (% of normal wages)
Employer Cost (% normal wages)
The employer will be reimbursed in arrears for the Government contribution. 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. The Government also expects that large employers will not be making capital distributions, such as dividends, while using the scheme.
The Job Support Scheme will sit alongside the Job Retention Bonus, which was announced by the Chancellor in July. The Bonus will provide a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021 and who earns at least £520 a month on average between 1 November 2020 and 31 January 2021. Businesses can benefit from both schemes.
For more information on employee related matters, please contact Tim Baker below:
Tel: +44 (0)20 3667 5971