Rishi Sunak’s new Job Support Scheme: Employees can’t be made redundant while having wages topped up
EMPLOYEES cannot be made redundant or be put at risk of losing their jobs while on Rishi Sunak's Job Support Scheme.
The new scheme, which replaces furlough from November 1, helps top-up wages for those working part-time.
Bosses can move staff on and off the scheme as they need - but employees must be on it for a minimum of seven days each time, details in the Chancellor's plan reveals.
The new scheme has been developed to try and keep staff in jobs to help prevent mass unemployment.
Most employers need to consult staff about redundancies - but this varies based on the number of jobs being lost.
Those with 20 to 99 staff up for the chop must give 30 days notice, while those losing over 100 jobs must start discussions at least 45 days in advance.
Where there are fewer than 20 jobs being lost, there is no set time period.
The Jobs Support Scheme is different to the furlough scheme, which paid 80 per cent of wages up to a maximum of £2,500 a month, where staff were not protected from redundancy.
When it was launched a loophole in the scheme meant that employees who were made redundant could have payouts calculated using their furloughed wages.
But the loophole was closed thanks to a new law in July.
For more information on how the Jobs Support Scheme works read out guide.
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The Chancellor announced the changes as part of his wider Winter Economy Plan in the Commons this afternoon.
Other measures in the support package include pushing back the deadline for the business loan support schemes and an extension to the VAT cut for the hospitality industry until March 2021.
As well as an extension to self-employment grants and more time to pay tax bills.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.