Employment Law Bulletin – Chancellor Announces Changes to the Government Job Support Scheme

Employment Law Bulletin – On Thursday 22nd October, the Chancellor announced plans to increase support through the Job Support Scheme, which is due to come into effect from 1 November. The Job Support Scheme will take over from the Coronavirus Job Retention Scheme (furlough) which will come to an end on 31 October.

When originally announced back in September, the Job Support Scheme would require employees to work and be paid for a minimum of 33% of their normal hours. The employer and the government would then each contribute 33% of the wages for the unworked hours and the employee would receive no pay for the remaining 33%.

The scheme now known as Job Support Scheme ( Open) which is different to the Job Support Scheme for Closed Businesses, has been amended so that the minimum hours requirement will be 20% instead of 33% and the employer contribution for unworked hours will be reduced from 33% to just 5%. This means that the government will provide up to 61.67% of wages for the hours not worked (subject to a cap of £1,541.75 per month).

Further guidance will be issued in due course, but in the meantime, read on for the key facts…