The new Job Support Scheme will be introduced on 1 November 2020 as part of the government drive to help protect jobs where businesses are facing lower demand over the winter months due to coronavirus.
This scheme has been designed to support viable jobs and employees must work at least one-third of their hours, paid as normal, in order to qualify for the scheme.
The government and employer will then each cover one-third of any remaining hours the employee is not working. Employees will therefore forego one-third of their pay for the hours that they have not been working. The maximum amount of the government contribution to the scheme will be capped at £697.92 per employee per month.
To be eligible, employees must meet the following conditions:
- Be registered on their employers PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee must have been made to HMRC on or before 23 September 2020.
- For the first three months of the scheme, from 1 November 2020 – 31 January 2021, the employee must work at least 33% of their usual hours. After the first 3 months of the scheme, the government will consider whether to increase this minimum hour’s threshold.
- Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short-time working arrangement must cover a minimum period of seven days. Any changes to the employment contract must be made by agreement and notified in writing.