As furlough comes to an end, the Government’s job support scheme is set to be introduced in a bid to protect jobs in sectors that are experiencing reduced demand as a result of the pandemic.
The job support scheme will run for six months and will see businesses pay their employees for the hours they work with the cost of any hours not worked shared by the scheme, the employer and the employee (by way of a wage cut).
The end result should be that employees earn at least 77 per cent of their normal wage (subject to a cap) and their job is retained until the business can return to normal.
Employers will be able to make claims through Gov.uk from December 2020. Grants will be payable in arrears with claims submitted after payment to the employee has been made.
The scheme, while considerably less generous than its predecessor, may provide a lifeline for some businesses. For others, however, tough decisions will have to be made with further job losses predicted.
It is also worth mentioning the Government’s job retention bonus. If you furloughed staff who have since returned to work and remain continuously employed until 31 January 2021, you can claim £1,000 for each of them.
This payment is for the business, not the employee, and can be claimed between 15 February 2021 and 31 March 2021. Full eligibility criteria are now available.
Over the last seven months, the landscape that employers have had to navigate has been challenging to say the least. Whether you have found yourself switching to remote working, introducing social distancing to premises, making operational changes or indeed making staff redundant, the road has been a bumpy one for many.
Employment law can be complex and making sure you follow all of the correct procedures when making changes is essential. If your business requires support with any employment matter, please don’t hesitate to get in touch. Our employment solicitors will be happy to guide you through. Just phone 01782 205000 or email firstname.lastname@example.org
We also offer a fixed fee HR service, which provides unlimited access to an employment solicitor for a low monthly cost. We work as an extension of your team, taking the stress out of HR matters by giving you prompt advice and guidance and drafting legally compliant employment-related letters and documents for you.