A new government scheme called the Job Support Scheme (JSS) is being brought out on the 1st of November to replace the furlough scheme which ends on the 31st of October. This scheme is designed to help businesses who are facing less demand to keep on staff. It is planned to run for 6 months.
The government will pay one-third of an employee’s wages if their employer’s business has been forced to close due to restrictions (up to £697.92 a month per employee) if the employer also pays one-third. The employer will have to pay pension contributions and National Insurance though.
Outside of their employer’s business closing, their employer can claim part of an employee’s wage off the government if the employee works at least a third of their normal hours. The employer will pay for these worked hours as normal and then the employee will receive more money on top of that. This is expected to mean that an employee will be able to receive 77% of their normal wages for only working a third of their normal hours. Their employer will still have to pay pension contributions and National Insurance. It is important to note that the employer must pay half of this extra money (22% of usual wage) without receiving any labour for it.
This scheme is available for small and medium businesses as well as some large ones if they have been doing badly. You do not have to have been on the furlough scheme to be eligible for the JSS. It is completely voluntary for an employer to become part of this scheme. Therefore in some cases it might be necessary for workers to come together and demand the JSS is implemented if they wish to use the scheme. Hospitality workers at the Pub Invest Group in Liverpool did this to get furloughed, earlier this year. If you want any help with something like this then send us a message.