The Government has published a Job Support Scheme factsheet which explains what is covered by the grant, which employers and employees are eligible, and how to claim. In summary:
The Scheme will open on the 1 November 2020 and run for six months until April 2021.
Employee’s must have been on the employer’s Real Time Information submission (with HMRC) on or before the 23 September 2020.
All SMEs will be eligible. Large businesses will have to show that they have been adversely affected by COVID-19 and not making capital contributions (such as dividends) while using the scheme.
Employees will need to work a minimum of 33% of their usual hours (the Government will review later whether to increase this for February, March and April 2021).
Employees can come on and off the scheme, working patterns can vary but each short-time working arrangement must cover a minimum period of seven days.
For every hour not worked, the Government will pay one third of the employee’s usual pay, capped at £697.92 per month.
Employers will also pay one third for every hour not worked.
Employees will therefore get 77% of their pay, subject to the Government’s cap.
The grant does not cover Class 1 employer NIC or pension contributions, which remain payable by the employer.
Employers can claim online from December 2020 and will be reimbursed in arrears.
NB: Unlike the current Furlough Scheme, employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
Further guidance will be issued in due course.