The JSS (Job Support Scheme) has been put in place to aid those employers facing lower demand over the winter months due to Covid-19 and who will no longer be able to use the Coronavirus Job Retention Scheme. The JSS will apply from 1 November 2020 to 30 April 2021.
Under this scheme the state will contribute towards employees’ wages who are working fewer hours than normal. Employers will continue to pay staff wages for the hours they work, but for hours not worked the government and the employer will pay one third of this each. This means that employees who must work shorter hours will still be paid two thirds of the hours they don’t work. Employees must be working at least one third of their usual hours and will receive at least 77% of their normal pay (after three months the government will consider increasing the minimum hour threshold).
Government contributions will be capped at £697.92 per month and employers will be reimbursed in arrears for the government contribution. The grant will not cover Class 1 employer NICs or pension contributions which will remain payable by the employer.
Who qualifies for the scheme?
Employees must be on an employer’s PAYE payroll on or before 23 September 2020, however employees can cycle on and off the scheme and do not have to work the same pattern each month. There will be no requirement that they were furloughed under the CJRS. All small and medium businesses are eligible, however larger businesses will need to demonstrate they have been adversely affected by Covid-19.
Under the Job Support Scheme Employees cannot be made redundant or given notice of redundancy during the period for which their employer is claiming the JSS grant for them.
For more information please see the Job Support Scheme Factsheet