The Government has just announced its plans for a new Jobs Support Scheme to replace the existing furlough scheme that will end on 31 October 2020.
From 1 November, the Government’s aim is to support businesses in bringing people back to work, with employees able to work reduced hours with the shortfall in their pay part-funded by public funds. There is some confusion around the Treasury top up but it appears it will work on a 33% basis. If an employee can work and be paid for at least 33% of their usual hours, the “pay” for the time they are not working will be split 1/3 HM Treasury, 1/3 employer with the employee foregoing 1/3. So for employees working exactly 33%, they will be paid 77% of their wages (55% employer / 22% HM Treasury).
The scheme gives employers the option to keep people in work on shorter hours rather than make them redundant. It is open to all employees, not just those who were previously on furlough. Large businesses will only be eligible if they can show a decrease in turnover due to the pandemic.
The scheme will run for 6 months from 1 November and is intended for jobs which will be viable at the end of that period.
We will update our readers with further details and legislation as they are published.
If you have any questions, please call us on 01228 552600 or 01524 548494.