The UK government has announced that a new Job Support Scheme will replace the furlough scheme when it ends on 31 October 2020. The Job Support Scheme is designed to help protect “viable” jobs in businesses that are facing lower demand over the winter months due to COVID-19. The Scheme will enable employers to retain employees in employment but on reduced hours and pay, with the help of a government wage subsidy.
There will also be an “extended” Job Support Scheme when businesses have to close. The “extended” Job Support Scheme aims to help protect the jobs of workers in businesses that are told to close because of local or national coronavirus restrictions.
More details on these schemes are expected to be published shortly. In the meantime, employers considering using the Job Support Scheme should start assessing which workers they may want to claim for under this scheme, and how they may want to make use of the scheme.
For a detailed update on the new schemes, see Chancellor announces new Job Support Scheme: https://www.clydeco.com/en/insights/2020/09/chancellor-announces-new-job-support-scheme-to-fol and Chancellor announces extension of the Job Support Scheme: https://www.clydeco.com/en/insights/2020/10/covid-19-employment-chancellor-announces-extension.
The UK government has also recently published guidance and a Treasury Direction on the Job Retention Bonus – see our update: New guidance for employers and a Treasury Direction: https://www.clydeco.com/en/insights/2020/10/covid-19-new-guidance-for-employers-and-a-treasury.
If you have any questions or would like advice on any of the issues raised here, please get in touch with your usual Clyde & Co contact. Clyde & Co attorneys are available to assist you with these and other workplace issues. For more information, visit www.clydeco.com.
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