Employer tells LBC he is "not incentivised" to keep staff on new job scheme

25 September 2020, 08:39

EJ Ward

By EJ Ward

In the wake of Chancellor Rishi Sunak's announcement of a new Job Support Scheme, one business owner has told LBC he is not incentivised to keep staff.

Speaking to LBC's Tom Swarbrick the business owner said: "Basically, I'm going to pay people for the time that they work."

He told LBC his business was struggling as he works in business services which is an industry that depends on having people in offices, and they're "not there."

"The idea that I would pay him full time, or make a contribution to the other three days a week with the Government chipping into that just doesn't make any sense."

"Why would I do that? If I need him for two days a week, I'm going to pay him for two days a week."

Mr Sunak, admitting his Job Support Scheme may not be enough to prevent rising unemployment and businesses going to the wall, also said "lives can no longer be put on hold".

The scheme is aimed at protecting viable jobs in businesses which are currently facing lower demand than normal. The aim is to keep people in the workforce, even if they cannot work their usual hours.

The state will contribute towards the wages of employees who are working fewer hours than normal.

Employers will continue to pay staff wages for the hours they work. But for the hours not worked, the Government and the employer will each pay one third of their equivalent salary.

It means that employees who can only work on shorter hours will still be paid two-thirds of the hours for the time they cannot work.

Employees must be working at least a third (33%) of their usual hours and will receive at least 77% of their normal pay.