Job Support Scheme Abandoned For Now
The Chancellor has announced that the Coronavirus Job Retention Scheme will be extended again until the end of March following bleak predictions about the UK economy.
Further details will be published soon but the key points are:
• The government will continue to pay up to 80% of a worker's salary - at least until January when it will review the position and could ask employers to contribute to the costs.
• Employers will have to pay national insurance and pension contributions on any hours the employee doesn't work (as well as on those they do).
• The Job Retention Bonus scheme has been abandoned but another redeployment incentive may be provided at the 'appropriate time'.
• It will be available for all UK employers
Fergal Dowling, partner and Head of Employment at law firm Irwin Mitchell, said:
Expert Opinion“This is a really significant development and means that the much heralded Job Support Scheme and Job Retention Bonus have been abandoned for now.
“It may mean that some employers will delay their redundancy exercises and although this should be welcomed, many organisations will be frustrated by the last minute nature of the decision and the fact that it will be too late for some.”
Fergal Dowling - Partner & Director of Legal Services (Commercial Advisory ＆ Disputes)