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23

Oct 2020

Job Support Scheme (JSS)

One month since the Job Support Scheme (JSS) was announced, the scheme has been expanded to support companies in high-alert level areas.

Before

When originally announced, the JSS which will come into effect on 1 November 2020, saw employers paying a third of their employees’ wages for hours not worked, and required employees to be working 33% of their normal hours.

Changes made

Following recent announcements, the employer’s contribution has been reduced for unworked hours to just 5%. Changes also reduce the minimum hours that an employee is required to work to 20% of their usual working hours, so those working just one day a week will be eligible.

No changes have been made to the JSS for those businesses legally required to close.

Key points:

  • The JSS starts to operate from 1 November 2020.
  • For every hour not worked, the employee will be paid up to two-thirds of their usual salary.
  • The government will provide up to 61.67% of wages for hours not worked, up to £1541.75 per month (more than doubling the maximum payment of £697.92 under the previous rules).
  • The cap is set above median earnings for employees in August at a reference salary of £3,125 per month.
  • Employers using the scheme will also be able to claim the Job Retention Bonus (JRB) for each employee that meets the eligibility criteria of the JRB. This is worth £1,000 per employee.

What is JSS Open and JSS Closed?

This scheme will now be known as JSS Open. JSS Closed is the scheme for those businesses which have been required to close under lockdown regulations.

Under the JSS Closed, the position remains that the employee will receive two-thirds of their normal wages, funded by the government (with a cap against those who earn more than £3,125 per month). The employer will have to pay the NI and pension contributions on that amount.

Under both schemes, there must be a written agreement between the employer and employee, agreeing to the changes.

For more information on the Job Support Scheme click here

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