What is going to happen after the Furlough Scheme ends? Chancellor, Rishi Sunak has revealed details this week of his Job Support Scheme that will replace Furlough when it closes on 31 October 2020. The scheme’s focus is to keep people in employment and to minimise unemployment in the UK.
The support scheme will run from 1 November 2020 for six months, and it will top up salaries in firms which cannot take employees back full- time. In order to be eligible, the employee must work for at least one-third of their normal hours; for the hours not worked, the government and employer will each pay one-third of the remaining wages. This means that the employee would get at least 77% of their pay.
So how does it work? The payment will be based on an employee’s normal salary, with the government contribution capped at £697.92 per month. It is similar to the Furlough Scheme where the wages amounted to 80%, but employees have to work at least a third of their hours, instead of not working at all. It is unclear what the government will do after three months into the Scheme; however it is likely that they may increase the minimum hours worked. Employees must be in “viable jobs” to benefit from the scheme. Therefore, those in industries such as nightclubs which are currently closed may lose out as there is not any work.
The Job Support Scheme is open to small and medium-sized businesses (around 250 employees or less). However large businesses are also eligible if they can prove their revenue has fallen because of COVID-19.
Workers cannot be made redundant or put on notice while a Job Support Scheme grant is being claimed on their behalf. As with the furlough scheme, employers will be reimbursed by the government after the work has been done.
For more information or to speak with one of our employment law specialists, please don’t hesitate to contact Healys Employment solicitors.