Update: Job Support Scheme extension for businesses that may be forced to close

The Chancellor has just announced the further expansion of the Job Support Scheme which is to run for 6 months from 1 November 2020.  Employees at businesses that may have to close when tougher local lockdown rules are announced next week will receive two-thirds of their wages paid by the government up to a maximum of £2,100 per month for the time that they are unable to go to work. 

Employers will not have to pay any wages in such circumstances although they will have to cover national insurance and pension contributions.

The Chancellor admitted that “We obviously won’t know the exact take up of the scheme like this because as we enter an uncertain period the exact scope of any restrictions that may be necessary is uncertain at this time.”

“But it’s right that we take action now to protect people’s jobs, provide that reassurance if indeed their businesses are asked to close throughout the winter.”

We can only wait to see what further lockdown rules may be announced next week but it seems likely that pubs and restaurants could be closed in the North East which has been identified as one of the worst-affected regions in England.

To read more about the details of the Job Support Scheme prior to the extension being announced click here.

Author: Lisa Branker, Employment Law Solicitor, Richard Reed Solicitors

Tel: 0191 567 0465 | Email: info@richardreed.co.uk | www.richardreed.co.uk

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