October 24, 2020

Volume X, Number 298

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New U.K. Job Support Scheme to Take Effect November 1

A new Job Support Scheme designed to protect jobs in businesses facing lower demand over the winter months due to the COVID-19 pandemic will take effect November 1, 2020 and last for six months, the U.K. government announced on September 24, 2020. It will replace the U.K. Coronavirus Job Retention Scheme (known as the U.K.’s furlough scheme), which will come to an end on October 31, 2020.

Under the new scheme, an employee must work at least 33% of their usual hours* for which they will receive their usual pay from their employer. For every hour that an employee has not worked, the U.K. government will pay one-third of the employee’s usual pay (capped at £697.92 per month), the employer will pay another third (uncapped) and the employee will forfeit the final third.

Employees can be moved on and off the scheme, but cannot be made redundant or given notice of redundancy whilst on the scheme.

Small and medium-sized enterprises (SMEs) will be automatically eligible. Large businesses will need to undergo a financial assessment test to demonstrate that their turnover has been reduced by the pandemic. The U.K. government expects large businesses not to make any capital distributions, such as dividend payments or share buybacks, while they are accessing the scheme.

Employers do not need to have previously used the Coronavirus Job Retention Scheme in order to be eligible under the new scheme, and will still be able to apply (if eligible) for the Coronavirus Job Retention Bonus.

Further guidance from the U.K. government is due to be published shortly.

*The proportion of hours an employee is required to work under the scheme is subject to a review by the U.K. government after the first three months.

© 2020 Faegre Drinker Biddle & Reath LLP. All Rights Reserved.National Law Review, Volume X, Number 269
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About this Author

Alex Denny Employment Attorney Faegre Drinker Biddle & Reath London, UK
Partner

Alex Denny helps companies ranging from startups to Fortune 500 businesses on all aspects of the employment relationship both in the U.K. and internationally. He has particular experience in the areas of business protection and restrictive covenants, employment issues that come up in the context of mergers and acquisitions, large scale restructuring projects across multiple jurisdictions and the management of executive terminations.

Alex’s clients come from the financial services, insurance, publishing, technology and recruitment industries. He also advises senior executives on all...

44 (0) 20 7450 4568
Emma Vennesson Employment Attorney Faegre Drinker

Emma Vennesson counsels clients on national and international employment issues. She also represents them in litigation and in cross-border mergers and acquisitions. Emma has the unique perspective of having been seconded to a global software company to manage its employment-related issues across EMEA and APAC.

Employment Counseling

Emma advises employers on a wide range of matters, including:

  • Fair recruitment procedures 
  • Employment status
  • Contracts of employment and service agreements
  • Employment policies and procedures, including grievance and disciplinary procedures
  • Post-termination non-compete restrictions 
  • Discrimination and harassment
  • Effective management of staff, including dealing with poor performance and long-term absence
  • Senior executive terminations
  • Severance agreements 
  • Redundancies and business reorganizations
  • Compliance with data protection obligations, including those arising from the EU's General Data Protection Regulation

Additionally, Emma advises high net worth individuals on employment issues, including the negotiation of employment terms, remuneration packages and severance terms

+44 (0) 20 7450 4562
Charlotte Marshall Labor & Employment Attorney Faegre Drinker Biddle & Reath London, UK
Associate

Charlotte Marshall advises multinational businesses on labor and employment issues, where her experience includes corporate transactions involving multinational parties, employment-related litigation, and labor and employment laws applicable to the U.K.

Past Experience

Prior to her time with the firm, Charlotte worked as a senior solicitor with Blake Morgan LLP. In this role, she provided invaluable assistance to both employers and individuals on issues such as recruitment, family leave, termination of employment and negotiating settlements, amongst others. She also gained...

44 (0) 20 7450 4585
Trainee Solicitor

Fred Kelleher advises clients on emerging legal and regulatory trends relating to labor and employment, with an eye toward supporting businesses in efforts to expand their workforce and deepen their presence across markets.

Previous Experience

Fred launched his career as a corporate paralegal at Goldman Sachs, assisting clients on regulatory and transactional matters. Fred then moved into a similar role on the investment funds team of an international law firm, where he advised general managers on fund formation and fund raisings. His last role prior to joining Faegre...

44 (0) 20-7450-4564
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