The support will be backdated to 1 March 2020 and will be open for an initial three-month period.

The UK government announced on 20 March 2020 certain emergency protective measures which it billed as “unprecedented”, and which are aimed at stalling job losses and encouraging employers to retain staff during the COVID-19 crisis.

In summary, any UK employer (regardless of size) will be able to apply to HM Revenue and Customs for a grant via a new job retention arrangement. This grant will cover a proportion of wages of any employee who is on UK payroll and who is asked not to work due to the COVID-19 crisis. This support will extend to cover 80% of an eligible employee’s salary up to £2,500 a month. This support will be backdated to 1 March 2020 and will be open for an initial three-month period (which the government is willing to consider extending). The government has promised that the funds for its new scheme will be provided on an unlimited basis. It appears that this support will be available for any employees on a company’s payroll who have regular earnings. Further clarity is required as to how this support will apply to employees whose earnings are not regular, such as zero hours workers.