The Government has published a factsheet explaining how the new Job Support Scheme works. The Job Support Scheme was announced yesterday by Rishi Sunak, the Chancellor of the Exchequer as part of a suite of measures to support the labour market following the forthcoming closure of the Coronavirus Job Retention Scheme on 31 October this year.
The new scheme will open for applications on 1 November 2020 and run for six months, until, April 2021.
Under the new scheme, employers will continue to pay employees for time worked but the cost of hours not worked will be split between the employer, the Government and the employee.
The Government will pay for a third of hours not worked up to a cap of £697.92 per month, with the employer also contributing a third towards the unworked hours.
This will ensure employees earn a minimum of 77% of their normal wages, where their wages are not over the cap. To be eligible the employee must work at least 33% of their usual hours and employers will not be able to give employees notice of redundancy while claiming under the scheme.
The factsheet sets out in detail the eligibility criteria for employers and employees, the wages covered, how employers can claim and how HMRC will carry out checks and can be found below:
Link to factsheet: https://www.gov.uk/government/publications/job-support-scheme