The Chancellor has announced a new 'Job Support Scheme', the successor to the Coronavirus Job Retention Scheme (CJRS) which closes on October 31.

• The New Scheme will open on November 1, 2020 and will run for six months.

• It is designed to support "viable" jobs in businesses facing lower than usual demand over winter due to coronavirus. To benefit, staff will have to work (and be paid for) at least one-third of their contracted hours for the first three months of the new scheme. This requirement may change after three months. It will no longer be possible to keep staff at home full-time and claim financial support from the Government towards the cost of their wages.

• For every hour not worked by the employee, the Government and the employer will each pay a third of the employee's hourly wage. The Government's contribution will be capped at £697.92 per month, paid in arrears as a reimbursement to the employer. The grant will not cover Class 1 employer NICs or pension contributions.

• Employees will be able to cycle on and off the new scheme and will not need to be working the same hours each month, although each short time working arrangement must cover a minimum seven-day period.

• All employers with a UK bank account and PAYE scheme can participate. However, "larger businesses" (criteria unknown) will need to demonstrate their turnover now is lower than before the pandemic.

• Employees cannot be made redundant or be given notice of redundancy whilst their employer is using the new scheme.

Employers considering the new scheme should assess the ongoing viability of affected staff roles. Regrettably, if employers reach the conclusion that particular roles are no longer viable, it may be sensible to take action now, whilst the CJRS continues to run.

  • Rebecca Fox is a partner at award-winning law firm VWV, which has offices in Clarendon Road, Watford. Get in touch on 07747 481 989or rfox@vwv.co.uk.