Employment Law Update: Enhanced Jobs Support Scheme
Thursday 22nd October 2020
Today the government has announced enhanced support to open businesses under the Jobs Support Scheme (JSS).
This follows an outcry from businesses under tier 2 restrictions stating they would be financially better off if they were in tier 3 and forced to close.
The new rules (regardless of what tier the business is situated in) are as follows:
- Employees need only work a minimum of 20% of their usual hours (down from 33%).
- Employers must still pay employees for the hours they work.
- Of the hours not worked, the government will fund 62% (up from 33%).
- Of the hours not worked, the employer must fund 5% (down from 33%).
- As before, the remaining salary loss is the employee’s to bear.
The JSS still applies to all small businesses and larger businesses that can show an impact on revenue due to COVID-19. It will run from 1 November 2020 for 6 months.
The scheme for closed businesses in tier 3 still applies. Here the government will pay 2/3rds of employees’ wages when they cannot work due to the closure.
If you require any further information on the above developments please get in contact with a member of the Employment Team.
