The Government’s Job Support Scheme (JSS) will open on 1 November and run until 30 April 2021 with a review of the terms of the scheme in January 2021. Due to many areas now being subject to additional social restrictions the Government have introduced a variation of the JSS now splitting into “JSS Open” and “JSS Closed”.
The JSS Open will provide financial support to businesses that are open but where employees are working reduced hours because of coronavirus. Employees will need to work at least 20% of their usual hours (reduced from the 33% previously announced) and will be paid for the hours they work.
The Government will contribute 61.67% of the usual pay for hours not worked capped at £1,541.75 per month. Employers will have to pay 5% of the usual pay for hours not worked capped at £125 per month. Employees should therefore receive at least two thirds of their usual pay for hours not worked. Employers can top up employees pay if they choose to do so.
The table below shows the revised support that will be available under the JSS Open assuming that the contribution cap is not breached:
The JSS Closed will provide financial support to businesses who are legally required to close as a direct result of coronavirus restrictions imposed by one of the UK Governments. This includes businesses restricted to delivery or collection-only services from their premises and those that are restricted to providing outdoor services only.
The Government will contribute 66.67% of the usual pay for hours not worked capped at £2,083.33 per month. Employers will not be required to contribute towards employees hours not worked. Employers can top up employees pay if they choose to do so.
Under both the JSS Open and JSS Closed employers will be responsible for all employer National Insurance and Pension contributions.
Claims for support will be made in arrears commencing from 8 December 2020 for November pay periods. Further guidance on how to claim will be issued nearer the time.
Under both JSS Open and JSS Closed you will need to ensure you also consider HR matters, with the terms being agreed with your employees in writing.
We are here to help so if you wish to discuss any aspects of the JSS then please contact us