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The Coronavirus Job Retention Scheme – more commonly known as “Furlough” – comes to a close on 31 October 2020.


The replacement for the Furlough system is the (much) less beneficial Job Support Scheme. This scheme will run until 30 April 2021 and will see employers reduce the working hours for employees, with the cost of the “unworked” hours being shared between the employer, the government and the employee.


The mechanics are fairly straightforward:


  • An employee on a salary of £1,200 a month has their contracted hours reduced to 50% under the scheme. (Note that this must be agreed in writing with the employee, and is not an automatic right)

  • The employer pays £600 for the hours actually worked, plus £200 for the “unworked” hours.

  • The government provides an additional £200 of funding to the employer to top-up the employees pay to £800 in total.

  • The employee misses out on £200 of pay in respect of the “unworked” hours.

You can download our FREE Job Support Scheme Calculator here:

 

It is important to note that all employer NIC and pension contributions are funded solely by the employer. For many employers this represents a significant burden, and one that we feel may dissuade many employers from using the scheme.


If you are currently utilising the existing Furlough scheme, you should consider whether the new scheme is a viable step. We can assist you with forecasting the costs incurred in using the Job Support Scheme to ensure that you take the right step for your business.


Call Clair Coburn or Mark McKenna today on 0151 489 1010 to see how we can help.

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