News | Legal News

12 October 2020

Staff to get two-thirds of wages if firms told to close

The Chancellor, Rishi Sunak has announced that the Job Support Scheme will be extended to support businesses across the UK required to close their premises due to coronavirus restrictions.

Companies affected can receive grants to pay 67% of employees’ salaries, up to £2,100 a month. Businesses will still be expected to pay Employer NI and pension contributions.

The new scheme will come into force on 1 November 2020 and run for six months, with a review point in January 2021. Employees must be off work for a minimum of seven days to be entitled to the grant.

Chancellor Rishi Sunak explained: "It will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time."

In addition, a second policy was also announced today by the Chancellor:

“If you’re a business in England, and have been legally required to close, we’ll also give you a cash grant that will never have to be repaid. And I’m making those grants more valuable than we’d previously planned.

“The smallest businesses can now claim £1,300 per month. Medium sized businesses – with properties worth between £15,000 and £51,000 - can claim £2,000 per month. And larger businesses can claim £3,000, all paid in two fortnightly instalments.”

The government explained the new policy could benefit hundreds of thousands of businesses, including restaurants, pubs, nightclubs and bowling alleys.

These measures will sit alongside the original Job Support Scheme and the £1,000 Job Retention Bonus.

For more information or advice please contact our employment team on 01753 889995 or email enquiries@bpcollins.co.uk.

Jo Davis

Jo Davis

Tel: 01753 279029 | 07894 608230

Chris Brazier

Chris Brazier

Tel: 01753 279029 | 07891 990980

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