Rishi Sunak has just unveiled the governments new support package to help businesses in the fight against coronavirus.
It has been confirmed that the furlough scheme will come to an end next month and the focus is now to support businesses in bringing people back to work; which this new scheme will do.
So, what is the new proposal?
A new Jobs Support Scheme has been introduced which will see the government providing support to businesses by assisting them with paying their employee’s wages of those that are in work. The aim of this is to encourage employers to keep people in work albeit on reduced hours, as opposed to making their role redundant.
How does it work?
- The employees have to work at least 1/3 of their normal working hours. Their employer shall be expected to pay this as normal.
- The government then tops up 1/3 of the remaining 67% and the employer a further 1/3 of the 67%, so that an employee receives 77% of their pay.
All SME’s will be eligible for this scheme and larger businesses shall also be eligible so long as they have seen a reduced turnover as a result of Covid-19. All employers can use this scheme and it is also open to employee’s who have not been furloughed previously.
The scheme will run for a period of 6 months and will come into place in November, Further details of the scheme will be published in due course.
If you need a hand making sense of this new scheme, get in touch! Call us on 0115 870 0150 or email us at support@guardianlaw.co.uk.
