The Accountancy Practice in Royston offers advice on job support scheme
- Credit: Archant
A North Herts business is offering advice on a job support scheme to help protect employee rights during the pandemic.
The Accountancy Practice, run by managing director David Froggett, is based in Royston High Street.
With the furlough scheme closing at the end of October, a replacement scheme has been announced which will run for six months – starting on November 1. The scheme is intended to protect incomes of employees and encourage employers to keep jobs open even if there is reduced demand.
The government is prepared to fund a third of the usual salary, of the hours not worked, with a contribution cap of almost £700 per month – and they expect the employer to do the same.
In practice this means that an employee working a third of their usual hours would forgo a portion of their salary, receiving 77 per cent, only slightly less than the amount they would have received under furlough, which was 80 per cent. It also means the employer would be paying just over half (55 per cent) of a salary for a third of the hours.
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Employees rights are protected during the six month period and they cannot be put on notice or redundancy. New employment contracts would need to be agreed. However, it is flexible and hours can vary each month but the employer needs to pay the employee and is then reimbursed by HMRC using the payroll system.
To be eligible for the scheme an employee needs to work at least a third of their usual hours in a ‘viable’ job. All small and medium sized businesses can apply but large organisations will have to prove that their firm is suffering due to coronavirus.
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The Accountancy Practice was named family business of the year at the Hertfordshire Business Awards 2020.
For more information contact Helen@theaccountancypractice.com.