The new Job Support Scheme

28 October 2020
The Governments new Job Support Scheme (JSS) will open on 1 November 2020 and run for six months, replacing the existing furlough scheme.

This information was correct as at 28 October 2020

The scheme will provide grants to businesses impacted by Covid-19 and aims to protect jobs by keeping workers in employment, while recognising it might not be possible for businesses to have all staff return to normal working hours.

How does it work?

Employees must work a minimum of 20% of their normal hours and as the employer, you must continue to pay them for those hours worked.

The cost of hours not worked is then split between you, the Government and your employee, through wage reduction.

This means:

  • You’ll pay your employee for the hours they work (a minimum of 20% of their normal hours/pay).
  • You'll also pay them for 5% of the hours not worked (up to a maximum of £125 per month).
  • The Government will pay 61.67% of the hours not worked. This amount is capped at £1,541.75 per month per employee.
  • Your employee will receive their normal contracted pay for the hours they work.
  • They’ll also receive up to two-thirds of their usual pay for the hours they don’t work.

So, an employee working the minimum 20% of their normal working hours will receive no less than 86% of their normal pay, and any additional hours worked by the employee will off-set this reduction.

The scheme offers the flexibility to change your employees’ working hours each month, and you can cycle them on and off the scheme, giving you the opportunity to rotate staff members if desired.

However, you’ll need to agree new working arrangements with your employees, update employment contracts and notify each of your employees in writing. HMRC may request this in future.

Your pension contributions

Your automatic enrolment duties will continue to apply as normal, and you’ll need to continue paying your pension contributions based on the lower salary your employees will receive, including the amount paid by the Government.

Our online dashboard will notify you of any upcoming re-enrolment and re-declaration duties, helping you stay on track.

Who can apply?

If you’re not able to have all your employees return to their normal working hours, you can apply for the JSS grant, as long as you have a UK bank account and UK PAYE scheme.

If your business is a larger business, you’ll have to meet a financial assessment test, showing that turnover is lower than it was before Covid-19. If it’s small or medium sized this won’t be required.

Who can you claim for?

You can claim for any employees added to your payroll on or before 23 September 2020.

How to claim

You’ll be able to make a claim online through gov.co.uk from December 2020.

Grants will be paid in arrears, on a monthly basis, after payment to the employee has been made and reported to HMRC.

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