Coronavirus Job Support Scheme – What you need to know
Published: September 30 2020
On 24 September 2020, the Chancellor, Rishi Sunak, announced a new Job Support Scheme (JSS) to try to avoid a wave of redundancies and job losses when the Coronavirus Job Retention Scheme (CJRS) ends on 31 October 2020.
The JSS will be introduced from 1 November 2020 and will continue for 6 months until 30 April 2021.
Who is eligible?
- All employers with a UK bank account and UK PAYE schemes.
- Neither the employer nor the employee needs to have previously used the CJRS.
- All Small and Medium-Sized Enterprises (SMEs). Large companies will have to undertake a financial assessment test and provide proof that their commercial operations have been severely impacted by the coronavirus in order to be eligible. The Government also expects that large businesses will not be making capital distributions (such as dividends or share buybacks) while accessing the JSS.
- Be on an employer’s PAYE payroll on or before 23rd September 2020. This includes a Real Time Information (RTI) submission, notifying payment to an employee to HMRC being made on or prior to 23rd September 2020.
- Not have received notice of redundancy in order to be eligible.
How does it work?
- Employees work a minimum of 33% of their normal working hours.
- For the remaining hours not worked, employers and the Government will each pay one third (22%) of the employees’ equivalent salary.
- The employee will therefore receive at least 77% of their normal working pay.
- The Government contribution will be capped at £697.92 per month.
For the initial three months of the Job Support Scheme, employees have to work at least 33% of their normal working hours. After three months, the Government may increase the minimum hour’s threshold.
Workers will be able to come on and off the Scheme and don’t have to work the same schedule of working hours each month. However, all short-time working arrangements have to cover a minimum period of seven days.
Employers and employees have to both agree to the new short-term working arrangements, and the business will need to notify employees in writing of the arrangements and make any changes as appropriate to their employment contracts.
Further guidance on the Job Support Scheme is expected to be published shortly. For more information please visit the Gov.uk website.
If your organisation is affected by Coronavirus and you require advice then get in touch with one of the team who are available to assist you during these challenging times.