The Coronavirus Job Retention Scheme (CJRS) ends on 31 October.
On 24 September the Chancellor announced the creation of the Job Support Scheme which will be available from 1 November.
Full details are yet to be announced but the following information has been released:
- The scheme will start from 1 November and run for 6 months. A claims portal will open on the Gov.uk website from December 2020.
- It is only available to employers who can offer their employees a minimum of 33% of their usual hours.
- Employees will be paid as follows:
- Their usual wages (i.e. pre-CJRS wages) for a minimum of 33% of their normal hours. This will be paid by the employer.
- The remaining unworked hours will be split as follows:
- The Employer will pay 33%.
- The Government will pay 33% (capped at £697.92 per month). The grant will not cover Class 1 employer NICs or pension contributions.
- The Employee will lose 33%.
- Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
- Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
- Large businesses will have to meet a financial assessment test. It is expected that employers must not top up their employees' wages.
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020.
- 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.
- Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
- Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing. This agreement must be made available to HMRC on request.