It’s Important for a person to know, what is Job Support Scheme and what it consists of. Who is eligible? and how can you apply for it if so? JSS will begin on 1st November 2020. The Job Support Scheme will replace the Job Retention Scheme. As JRS has been in place since March 2020 to provide wage assistance to employers who were unable to provide work to their employees because of the impact of the coronavirus, and to avoid redundancies. This will end on 31st October 2020
What is it JSS?
It is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to Covid-19, to help keep their employees attached to the workforce. The employer will continue to pay its employee for time worked, but the burden of hours not worked will be split between the employer, the Government and the employee will keep their job. There is need to focus on those that are being impacted by Coronavirus and who can support their employees doing some work, but that need more time for demand to recover. The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will ensure employees earn a minimum of 77% of their normal wages, where the Government contribution has not been capped. The scheme will open on 1 November 2020 and run for 6 months, until April 2021.
Who is eligible?
- All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
- Large businesses will have to meet a financial assessment test, so the scheme is only available to those whose turnover is lower now than before experiencing difficulties from Covid-19.
- There will be no financial assessment test for small and medium enterprises (SMEs).
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020. This means a Real Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.
- In order to support viable jobs, for the first three months of the scheme the employee must work at least 33% of their usual hours. After 3 months, the Government will consider whether to increase this minimum hours threshold.
- Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short-time working arrangement must cover a minimum period of seven days.
What does the grant cover?
- For every hour not worked by the employee, both the Government and employer will pay a third each of the usual hourly wage for that employee. The Government contribution will be capped at £697.92 a month.
- Employees who have previously been furloughed, will have their underlying usual pay and/or hours used to calculate usual wages, not the amount they were paid whilst on furlough.
The employee must be working at least 33% of their usual hours. For the time worked, employees must be paid their normal contracted wage. For time not worked, the employee will be paid up to two-thirds of their usual wage. Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
Announcement by Mr. Sunak on 22 Oct. 2020 for businesses unable to operate.
- Employee will have to pay for a minimum of 20% (reduced from 33%) of usual hours worked, and 5% of hours not worked, earlier which was 55% of wages for a third of hours.
- The Government will now fund 62% of the wages for hours not worked. This more than doubles the maximum payment to £1,541.75.
- Employers will continue to receive the £1,000 Job Retention Bonus.
- An employer can receive over 95% of the total wage costs of their employees if they are retained until February if he takes JSS-open and JRB together.