The future after Furlough
As the Coronavirus Job Replacement Scheme (CJRS) draws to a close on 31 October 2020 and the pandemic continues with the introduction of new restrictions, employers need to look to the future and consider the new options available to support their businesses. Employment Partner, Sean McDonough outlines some of the options in his latest article.
The Job Support Scheme
The Job Support Scheme starts on 1 November 2020, immediately after the CJRS ends. Under the new scheme the government will partially top up pay for workers who are not needed to work their full contracted hours due to the ongoing pandemic but are able to work for at least one third of their usual hours.
The government will pay one third of hours not worked, up to a cap of £697.92 per month, with the employer also contributing a third of hours not worked (not capped). The scheme will last for 6 months and all SMEs are eligible regardless of their financial situation.
For businesses required to close entirely due to tighter local or national coronavirus restrictions the government will pay two thirds of their employees’ wages, subject to a cap of £2,100 per month.
Much like CJRS, the Job Support Scheme allows employees (who were on PAYE on or before 23 September 2020) to opt in and out of the scheme without needing to work the same pattern each month.
The Job Retention Bonus
The Job Retention Bonus is a one-off payment of £1,000 which the government will give employers for every furloughed employee retained until 31 January 2021. The employee must have been placed on furlough at any time during the last few months, remain continuously employed up to 31 January 2021 and earn at least £520 per month between 1 November 2020 and 31 January 2021. Employers will be able to claim the Job Retention Bonus after they have filed PAYE for January and payments will be made to employers from February 2021
The Kickstart Scheme
The Kickstart Scheme offers employers £1,500 for every ‘high quality’ 6-month work placement given to a formerly unemployed 16 – 24-year-old. Funding will cover 100% of the relevant National Minimum Wage for 25 hours per week, employer National Insurance contributions and minimum automatic enrolment contributions for each placement.
To be eligible prospective employees must currently receive Universal Credit and be at risk of long-term unemployment.
Incentivising employers to take on apprentices
Employers are being offered £2,000 for each new under-25-year-old apprentice and £1,000 for every over-25-year-old, they have taken on up to 31 January 2021. Employers interested in recruiting redundant apprentices can find more information here.
For advice and guidance on the different schemes please get in contact with the team today. Call Sean McDonough on 01225 750000 or email sean.mcdonough@mogersdrewett.com.