Under measures launched by the Government in September, the new Job Support Scheme will continue to support businesses once the Coronavirus Job Retention Scheme concludes on 31st October.

Employers who identify staff as ‘Furlough workers’ and notify HMRC, will be eligible to reclaim up to 2/3 of the cost of an employee’s unworked hours* in a move to retain staff within the business, and avoid redundancies, during the Coronavirus pandemic.

*determined by whether they are claiming JSS Open or JSS Closed

The Job Support Scheme is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The scheme will open on 1 November 2020 and run for 6 months.

The company will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.

The Government will pay a 62% of hours not worked up to a cap, with the employer also contributing 5%. This will ensure employees earn a minimum of 73% of their normal wages, where the Government contribution has not been capped.

Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.

 

Our simple factsheet on the Job Support Scheme is essential for all business owners. Click on the link below to download your copy or share this page with your networks to ensure all employers are up to date with the changes.

Things employers should be aware of to access the Job Support Scheme:

  1. There are now two types of Job Support Scheme; Businesses that are operating but facing decreased demand can get support through JSS Open, businesses that are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK can get support through JSS Closed.
  2. Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme to be eligible for either JSS.
  3. An employer can claim the JSS Open and JSS Closed grant at the same time for different employees.
  4. An employer cannot claim for a single employee under both schemes at the same time.
  5. Large businesses will have to meet a financial assessment test, so the scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19.
  6. There will be no financial assessment test for small and medium enterprises (SMEs)
  7. Employees must have been included on a Real Time Information (RTI) submission notifying payment to that employee to HMRC between 6th April 2019 and 23 September 2020.
  8. An employee will only need to work a minimum of 20% of their normal hours to be eligible for the JSS Open scheme.
  9. Grant payments will be made in arrears, reimbursing the employer for the Government’s contribution

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