Job Support Scheme Announced

Rishi Sunak has announced various measures to support employers and employees, amidst the continuing Covid-19 Pandemic.  Here are the key points of the Job Support Scheme:

• To be introduced from 1 November 2020 and to run for 6 months thereafter.
• Employees will need to work a minimum of 33% of their usual hours.
• For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month.
• Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped.
• The employer will be reimbursed in arrears for the government contribution.
• The employee must not be on a redundancy notice.
• Open to all employers with a UK bank account and a UK PAYE scheme.
• 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, and the government expects that large employers will not be making capital distributions (such as dividends), while using the scheme.

Please don’t hesitate to contact the team at MLP Law with ideas about topics or for detailed advice in connection with any of the issues raised. You can reach us at employment@mlplaw.co.uk or @HRHeroUK or on 0161 926 9969.