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Job Support Scheme – What It Means for Your Business and How We Can Support You

October 2020

Effective from 1st November 2020, the Job Support Scheme will ensure financial security through the coming winter months. The scheme will cover salary/wages for pay periods ending and paid in November. However, claims cannot be submitted until after 8th December. Subsequent months will follow a similar pattern, with the final claims for April being made from early May.


Employees will now receive at least 66.67% of their normal pay for the hours not worked, made up of contributions from both the employer and from the government.

The new Job Support Scheme (JSS) is divided into two elements: JSS Open and JSS Closed. What does this mean, and what category do I fall under?

JSS Open

This is available for employers who are experiencing decreased demand due to Covid-19, but which remain open. Employees will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours they have worked.

How it works:

ExampleEmployee A earns £1000 per month
Normal Hours (Outside Covid-19 Conditions)£1,000
Works 20% of Normal Hours£200
Hours Not Worked£800
5% of Salary Not Worked£40
Government Refunds 61.67%£493
Pay£733*


Please note the employer pays the initial sum (in our example this would be £733), and the government amount of 61.67% (£493) will be refunded to the employer in the following month.

*The total pay is subject to the usual deductions.

Be aware that employers cannot enter into any commitment or transaction with the employee which would reduce wages below the amount claimed.

Temporary Working Agreement

A temporary working agreement must be made in writing and given to the employee. The temporary working agreement must cover at least 7 consecutive days.

If we process your payroll, you will need to provide us with a scanned copy of the agreement at the time of signing; this will allow us to make the necessary calculations before running your payroll. We will confirm receipt of these within 2 working days.

Delays in providing this information could cause delays in the processing of your payroll due to increased calculations needed. Templates are available from us upon request, just get in touch to request one.

JSS Closed

This scheme is for employers whose business premises at one or more locations has been legally required to close as a direct impact of coronavirus (for a minimum of 7 consecutive days). This includes premises which have since been restricted to delivery or collection only, as well as establishments which can only serve food and drinks outdoors. It is important to note that employers will only be eligible to claim for periods where coronavirus restrictions are put into place by the government.

For example, if your business must temporarily close because it is in an area of Tier 3 lockdown, or because it is a restaurant which can only operate via a delivery service, it will be eligible for JSS Closed. However, if a business closes for reasons outside of government legislation, such as an outbreak within the business, they will not be eligible. Once a business can legally reopen after claiming JSS Closed, they may become eligible for JSS Open.

A business may claim both JSS Open and JSS Closed simultaneously for separate departments or employees. For example, a company may require one department to work (for which they may claim JSS Open if eligible), but another department to legally close, for which they can claim JSS Closed. For instance, a restaurant where a delivery only service is in operation, the waiters and waitresses will require JSS Closed since they cannot work, and the chefs may be eligible for JSS Open. Please be advised that JSS open and JSS Closed cannot be claimed at the same time for one individual employee.

Requirements

It is important to note that with both JSS Open and JSS Closed, employers must notify the employee of the agreement in writing. It must also maintain records relating to the following terms of agreement for each employee:

There are some things which JSS does not cover:

The full amount of any grant must be repaid if a claim is found to be fraudulent. Penalties of up to 100% of the amount overclaimed may be applied where appropriate. HMRC will consider publishing the details of employers who are charged a penalty because of a deliberately incorrect Job Support Scheme grant claim.

Employers claiming the Job Support Scheme may still claim the Job Retention Bonus in respect of the same employee if they are eligible. Grants claimed under the Job Support Scheme can be used by employers to pay an employee’s wages and help meet the Lower Earnings Limit of the Job Retention Bonus.

Details are subject to change and will be updated accordingly once the government have published further documentation.

For full details, please visit: gov.uk

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