Chancellor Rishi Sunak has announced a further amendment to the Job Support Scheme, which is due to begin on 1 November 2020.
When originally announced, the JSS required employees to work a minimum of 33% of their normal hours. This has now been reduced to 20%, meaning that employees working as little as one day a week are now eligible for the scheme.
Additionally, the employer contribution to the ‘unworked’ hours has been significantly reduced from 33% to just 5%. This could have a huge impact on businesses and enable more employees to be kept in work.
Employees cannot be made redundant or be under notice while on the scheme
Employees must sign an amendment to their contract confirming their agreement to be placed on the scheme
Example: “If someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.”
Employers will continue to receive the £1,000 Job Retention Bonus.
No changes have been made to the JSS for those businesses legally required to close.
The rules governing the job rentention bonus are unchanged