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The Chancellor announced a new Job Support Scheme (“JSS”), which is to run from November 2020 for 6 months and replace the current Coronavirus Job Retention Scheme, which ends on 31 October 2020.
Whilst businesses deal with suppressed demand over the winter months, the Government has introduced the JSS to support the wages of those in viable jobs. The JSS will keep employees in jobs, but with shorter hours, rather than making them redundant.
Further detail on the JSS is expected once guidance has been released by the Government. However, from the Chancellor’s statement today and the Winter Economy Plan, we now know that the following applies to the JSS:
Hours Employee Worked | 33% | 40% | 50% | 60% | 70% |
Hours Employee Not Working | 67% | 60% | 50% | 40% | 30% |
Employee Earnings (% of normal) | 78% | 80% | 83% | 87% | 90% |
Gov't Grant (% of normal wages) | 22% | 20% | 17% | 13% | 10% |
Employer Cost (% normal wages) | 55% | 60% | 67% | 73% | 80% |
Matthew Potter comments:
“The introduction of a successor to the CJRS will no doubt be welcomed by businesses still facing a difficult future not helped by a potentially difficult winter period, in light of reduced demand and further social distancing; the overall impact of the scheme will be to help preserve jobs.
Further detail on the Job Support Scheme will follow in the coming days and weeks and we shall endeavour to keep you as up to date as possible with the detail.”
If you require any assistance or have any questions on the Job Support Scheme and its impact on your business, please do not hesitate to get in touch with a member of the Howes Percival Employment Team.
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To contact us, please fill out this form and we will get back in touch as soon as possible. Your personal data will be processed in accordance with our privacy policy which can be found here.