The Job Retention Scheme, known as the Furlough Scheme, stops on 31/10/20. It is being replaced by a new Job Support Scheme, essentially to try and continue to protect ‘viable’ jobs for employers but also support employers that may be impacted by further trade restrictions, local, regional or national lockdowns. The Job Support Scheme starts on 01/11/20.
Criteria is as follows:
It is only available for ‘viable’ jobs.
The ‘acid test’ for viable jobs is that you can still work at least 33% of your normal workings hours. If you/your employer cannot deliver at least 33% of your normal working hours even during lockdown, it is not considered viable and will not qualify for support.
If you work more than 33%, your pay will increase but government support will be reduced. See the following support table:
% of Normal Hours Worked |
33% |
40% |
50% |
60% |
70% |
% of Normal Pay You Will Be Paid |
78% |
80% |
83% |
87% |
90% |
Pay is Funded by: |
|||||
Gov. Support |
22% |
20% |
17% |
13% |
10% |
Employer Pay & Support |
56% |
60% |
67% |
73% |
80% |
Meaning Employer ‘Support’ broadly matches Gov. Support |
Our view
Whilst the scheme is still beneficial, many employers will simply not be able to afford to pay the additional ‘free’ % of pay support on top of pensions etc based upon if you are only able to work at 33% capacity.
This Job Support Scheme will run for 6 months and will be reviewed in April 2021, when the government has suggested it will then move to lower support packages/% at that time.
We suggest the scheme has been designed to encourage employers to adapt their work practices to cope with a social distancing, self isolating and lock down world as well as moving workers that are not in viable jobs to either being made redundant and seek alternative ‘viable’ employment or move to redundancy benefits.
ESSENTIAL COOKIES ONLY - WE DO NOT TRACK YOU
WE DON'T LIKE BEING TRACKED SO WHY WOULD WE 'SPY' ON YOU?
Close