It’s all change for support to small business…
By Niamh Kelly
2020-11-18
It’s all change for support to small business…
No sooner was the ink dry on the 3rd version of the Job Support Scheme, than it was all set aside in favour of the Extended Coronavirus Job Support Scheme (CJRS) … or Extended Furlough.
- will be available until the end of March 2021; but reviewed in January 2021 to 'decide where economic circumstances are improving to ask employers to contribute more' (ie - expect to have the government % decreased and the employer contribution increased!)
- The Job Retention Bonus (the £1k due in January if you had brought someone back from Furlough) is gone… there was mention of a 'retention incentive at an appropriate time'
- Eligible employees will receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month.
- Flexible Furlough is included (so you can furlough for any amount of time and shift; or full time as required)
- There will be NO employer contribution to wages for hours not worked. Employers will only be asked to cover National Insurance and Employer pension contributions for hours not worked.
- The extended CJRS will operate as the previous Scheme did, with businesses being able to claim either shortly before, during or after running payroll.
- Neither the employer nor the employee needs to have previously claimed or have been claimed for under CJRS to make a claim under the extended CJRS (if other eligibility criteria are met).
- An employer can claim for employees who were employed and on their PAYE payroll on 30 October 2020. The employer must have made a PAYE Real Time Information (RTI) submission to HMRC between 20 March 2020 and 30 October 2020, notifying a payment of earnings for that employee.
- Employees that were employed and on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) who were made redundant or stopped working afterwards can be re-employed and claimed for. The employer must have made an RTI submission to HMRC from 20 March 2020 to 23 September 2020, notifying a payment of earnings for those employees.
- You must have agreement with your staff to take Furlough by 13th November 2020!!
As I’ve said a couple of times now - with so many people having had to look at different ways of working; including new careers; now might be the ideal time for you to consider whether using the Government Extended Furlough or Kickstart schemes could both help you expand your business and provide someone with a new opportunity…. Before you start down the road of redundancy.
I appreciate that it’s an incredibly challenging juggling act. Practically, emotionally and financially, the costs of getting things right and wrong over the coming months and years will have potential to make or break a business.
If the redundancy process is necessary, then please remember to ensure you follow the ACAS process – carrying out consultation openly, thoroughly and genuinely, offering fairness and dignity to affected employees.
While it may be tempting to divert directly to redundancy as the least risky option, I would advise caution before losing valuable experience and training from any business. Talk to your employees. You may think redundancy is the only option, but you might be surprised with the ideas your they come with up as alternatives!
About the author:
© Níamh Kelly – Director of The HR Dept Shropshire – is an award-winning HR professional with over 25 years HR experience at a Senior level in the corporate, public and voluntary sector. Working with SMEs across the County; The HR Dept – Shropshire has rapidly developed a very strong client base of local companies. So if you have a question about Recruitment & Right to Work; to Resolving Problems; to Redundancy… she’s here to help you!