We wanted to give an update on the Job Support Scheme (JSS) which will start on 1st November 2020. Employers need to understand the eligibility criteria, conditions and timescales for making claims.
There are two types of Job Support Scheme: Open and Closed; this article explains how these will work.
Job Support Scheme (Open)
The JSS Open is for employers facing decreased demand. If your business can continue to operate safely, but you know that the demand is lower than normal, then you may want your employees to keep working. Your employees will probably need to reduce the number of hours they are working, in these circumstances. The government has announced that it will increase the level of support to employers through this JSS Open scheme.
How does the scheme work?
- Employees need to work a minimum of 20% of their usual hours
- Employers should continue to pay them as normal for hours worked
- The employee will receive 66.67% of their normal pay for the hours not worked
- This additional payment to be made but the employer and the government
- employers to pay a reference salary for hours not worked (maximum £125 per month)
- The government will pay 61.67% of reference salary 4 hours not worked (maximum £,1541.75 per month)
By operating the scheme in this way employees will receive at least 73% of their normal wages where they ear £3,125 a month or less
Job Support Scheme (Closed)
This is for employers who are legally required to close their premises as a direct result of the Coronavirus restrictions. You should have been notified directly if you are legally required to close and not operate your business. The JSS Closed scheme will support the wage costs of employees so that you do not have to make them redundant.
How does this scheme work?
- Each employee will receive two-thirds of their normal pay from their employer and fully funded by the government.
- This is up to a maximum of £2,083.33 per month
- The employer can pay more to the employee if they wish
- Employees may also be entitled to additional support including Universal Credit
It is hoped that this scheme will limit unemployment and also help to retain relationships between employers and their employees so that when the business reopens this can be done as quickly as possible.
Next steps for the Job Support Scheme
The scheme will open on 1st November 2020 and will run for six months until 30th April 2021.
An employer may have different employees that fit under the two schemes, i.e. JSS Open and JSS Closed. This is fine and claims can be made in this way; however, an employer must not claim for a single employee under both schemes at the same time.
All businesses that have enrolled for PAYE online and have a UK, Channel Island or Isle of Man bank account are eligible
If you would like any more advice about the Job Support Scheme and how to make your claims in November, please do contact us.
You can call 01623 490 120 or email