Drapers - 29 September 2020
On 24 September the UK Government announced a new wage support scheme for employers to replace the furlough scheme from 1 November 2020 (running until 31 April 2021). The Job Support Scheme (JSS) will allow employers to agree to move employees to reduced hours, with both the employer and HMRC providing a partial subsidy of pay for hours not worked.
Partner Raoul Parekh commented on the new Job Support Scheme: “The combination of the complexity of the criteria, the limitation of the government support- the cap, and exclusion of NICs and pension costs- and the significant employer support requirement, will severely limit the attraction of the scheme. The chancellor’s scheme might avoid subsidising unviable jobs, but it also fails to help employers to save thousands of viable jobs.”
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