This is a new 6-month scheme available from 1 November 2020 to 30 April 2020 to protect jobs in businesses that are adversely affected by coronavirus. If employees have to work less than their usual hours, the government will contribute a third, capped at £697.92, towards the pay of the unworked hours.
NOTE: The government expects that employers cannot top up their employees’ wages above the two-thirds contribution to hours not worked at their own expense.
Worked hours must be at least 33% of usual hours. An illustration is given below for Employee A who usually works 100 hours per month and earns £1000. In November, rather than being made redundant, Employee A will work 60 hours ie 60% of his usual hours. His pay is calculated as:
Total hours worked: 60. Hours not worked: 40
Employer pays for hours worked: £600
Employer pays 1/3 of hours not worked: 1/3 of £400 = £133.33
The Government’s grant covers 1/3 of hours not worked: £133.33 equivalent
Total pay received: £866.66
Amount forfeited by Employee A: £133.33