With effect from the 1st November 2020 the new ‘Job Support Scheme’ will be launched by the government.
This scheme has been introduced to support employers with reduced income due to Covid-19 to retain their workforce for the next 3 months, pending further review.
Main features of scheme:-
- Employees must work a minimum of 20% of their contracted hours
- The employer will pay the full contractual pay for the hours worked plus 5% of unworked
- The government will pay 62%
If you are unable to offer employees 20% of their contractual hours a business can introduce ‘private furlough’, this is a form of non-statutory lay-off, paid or unpaid. If your employees’ contract of employment does not enable a right to lay-off you will need to negotiate a new contract and get signed agreement of the changes.
Where a business is forced to shut due to Covid-19 restrictions (tier 3) a grant is available during this time. This grant pays two-thirds of the employees’ contractual salary, capped at £2,100 per month.
For those areas moving into Tier 2/3 greater support is now being made available.
However, employers should be careful to ensure any selection for the above is made fairly and does not discriminate in any way so as not to breach any contractual rights.
If you would like any advice implementing any of the above please contact me.