In the newly outlined Job Support Scheme, the government will pay one-third of employees' wages on the days they do not work. Employers will pay the other third and the employee will take a one-third pay cut on days not worked.
In effect, this means the government has committed to covering one-fifth of the wages of small business' employees.
The scheme seeks to ensure that staff working one-third of their 'usual' hours will still receive 77% of their salary. The government would provide 22% and the employer providing 55%.
There is, however, a flaw in the proposed system. An employer could decide to keep three members of staff, all working at one-third of their usual hours. This acts as the equivalent to one person working full time.
This would result in the employer paying considerably more than if they had one full-time employee. In this situation, the employer would be paying three times the required 55% salary percentage - a total of 165%.
We will be closely monitoring this situation, and will share updates as soon as we are able. Please get in touch with us if we can be of support to you during this time.