Client Updates, Covid-19, Employment Law

Jobs Support Scheme Extended to Businesses Forced to Close

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Jobs Support Scheme Extended to Businesses Forced to Close

As we eagerly await further and full details of the forthcoming Jobs Support Scheme, the Chancellor made a surprise announcement last week confirming an extension to the Scheme, as previously announced, to provide additional support to businesses forced to close due to the Covid-19 pandemic.
Boris Johnson is due to make a national address today (12 October) in which he is expected to announced a new Three Tier lockdown system which will see certain businesses forced to close to help prevent the spread of Covid-19.
Perhaps in anticipation of this the Chancellor has announced that the Jobs Support Scheme, which will see the government contribute one-third of the shortfall of wages for employees who are working reduced hours, but at least 33% of their normal, pre-furlough hours up to a cap of £697.92 per month, will be extended to any business required to close their premises due to local or national coronavirus restrictions.
Under the extension, the government will pay two thirds of employee wages up to a maximum of £2,100 per month (not quite as much as under the current CJRS). Under the Jobs Support Scheme extension, employers will not be required to contributed towards wages and will only be asked to cover NICS and pension contributions.
Businesses will only be eligible to claim the grant whilst they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.
The Scheme (and its extension) will begin on 1 November and run for 6 months. Payments to closed businesses will be made in arrears via HMRC claims service that will be available from early December. Employees of firms who have been legally closed in the period before 1 November are entitled to furlough pay under the current CJRS.
As always, we are keeping a close eye on developments and will provide further updates as and when more information is released. If you would like to discuss any aspect of this latest information, please contact the Employment Team on 01274 864 999

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