Orchard Employment Law provide answers to some frequently asked questions.
Both Employers and employees have been concerned about the future of jobs once the Furlough scheme ends on the 31st October so it is no surprise that people were eagerly awaiting the announcement of the new job support scheme.
We bring you answers to some frequently asked questions.
What is the Job Support Scheme in a nutshell?
This scheme will allow employers to reduce staff hours and to claim some monies from the government.
All small and medium businesses will be eligible to use the scheme but large businesses will only be able to claim if they can show that their turnover has reduced as a result of the pandemic.
How many hours must an employee work to be eligible for the scheme?
Under the new scheme the employees work at least at least one third of the employees normal hours. The minimum hour requirement might increase after January 2021.
What will I have to pay as an employer?
As an employer you will be required to pay national insurance and pensions. You will also have to pay 100% of the hours which the employee works.
You will also have to contribute towards the hours which the employee does not work. Your total contribution will vary depending on the percentage of time the employee works. The total minimum contribution from an employer (including hours worked) will be 55% but it could be as much as 80%.
Just as with furlough, it is likely that the employee will be on a reduced salary on the job support scheme.
Can I use the scheme on a new employee?
Employees who been employed on of after the 23rd of September 2020 are eligible for the scheme.
What if the employee has not been furloughed in the past?
There is no requirement for the business to have used furlough in the past or for the employee to have been furloughed before.
Can I rotate staff on the scheme?
Yes, you can rotate staff on and off the job retention scheme but they must be on the scheme for a minimum of 7 days at a time.
Is there an automatic right to put an employee on the scheme?
No, as this will be a reduction in wages you will need to check your contracts to see whether or not you have the right to reduce pay. If you do not have the right to reduce pay you should negotiate with your staff and have a written agreement for them to be on the scheme. We recommend you take advice on this so as not to end up with a claim against you.
You should also have clear and transparent reasons as to who is put on the scheme and who isn’t. You are still required to follow UK employment laws and this means not discriminating against people.
Will I still be able to make redundancies if I use the scheme?
You will still be able to make redundancies but you cannot use the scheme during the notice period. Employees should receive their full redundancy and notice pay (pre furlough and job support scheme.
Do I have to use the scheme instead of using redundancies or lay off?
No, there is no obligation for an employer to use the job support scheme.
Can we contact you for support?
Yes, we provide advice and support to employers with all HR and Employment Law matters. You can contact us at www.orchardemploymentlaw.co.uk