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Government announces new Job Support Scheme
The Chancellor, Rishi Sunak has today announced the Job Support Scheme.
Whilst the Coronavirus Job Retention Scheme (a.k.a. furlough leave) is still due to end on 31 October 2020, the Job Support Scheme will come into force in November 2020.
As long as employees work at least one third of their usual working hours and are paid for that time by their employers, the Government will top up the employee's pay to two thirds of their normal salary.
All small and medium enterprises will be eligible for this support. Meanwhile, larger organisations may also be able to claim it if they can show that their turnover has fallen because of the impact of Covid-19.
Crucially, an employee will not need to have been furloughed to be placed on this new arrangement.
As was the case with furlough leave, the full details of the Job Support Scheme are still being decided, as the announcement from HM Revenue & Customs does not currently match the Chancellor's announcement. Therefore, employers and employees should exercise caution for the time being.
More information will be available soon.
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