Is The Job Support Scheme The New Furlough?

With the Furlough Scheme coming to an end on the 31 October 2020, we take a look at the new Job Support Scheme (JSS) which is designed to replace it from 1st November and answer some key questions for your business on its application.

If you are looking for information on the extension to the JSS, which applies to compulsory closure of businesses owing to Covid-19 please see our Job Retention Scheme: Closed Business Premises blog.

What Is The Job Support Scheme?

The JSS will provide ongoing wage support for people in work provided certain criteria are met.

Does My Business Qualify?

The JJS is not sector specific. It is open to all employers with eligible employees, a UK bank account and a UK PAYE Scheme.
However, the JSS will only be available to larger employers if they meet a financial assessment test. If you are a larger employer, you will need to demonstrate that your turnover is lower as a result of the Covid-19 pandemic.

Are My Employees Eligible?

An employee must be on your PAYE payroll on or before the 23 September 2020 to be eligible for JSS.

There is no requirement for an employee to have been furloughed previously in order to be put into the JSS.

For the first three months of JSS, an employee must work at least 33% of their usual hours. The Government has hinted that it will consider increasing this threshold after three months.

Employees will be able to cycle on and off the JSS and will not have to work the same pattern each month. However, each short-time working arrangement must cover at least seven days.

What Will Be The Cost To My Business If I Use The JSS?

For time worked (at least 33% of contracted hours), employees must be paid their normal contractual wage.

Any unworked time is split into three. Your business will pay for a third of the unworked time, the Government will pay for another third (up to a cap of £697.92 per month) and the final third would be unpaid.

The JSS will not cover Class 1 Employer NIC’s or pension contributions. These contributions will remain payable by your business.

Can I Make Employees On The JSS Redundant?

Employees cannot be made redundant or given notice of redundancy during the period for which you are claiming the grant for them.

There does not however seem to be a ban on making an employee redundant if you were to move the employee out of the JJS and stop claiming the grant for them.

How Do I Claim?

Grants will be payable monthly in arrears. Claims should be made online through gov.uk from December 2020.

What Practical Steps Should I Be Considering If My Business Wants To Use The JSS?

Once again, consultations will be need to take place with staff and any new short time working arrangements will need to be documented to show any changes to existing terms and conditions. Agreements should be retained as there will be a requirement to make them available to HMRC upon request.

If you are concerned about the effect that these changes will have on your business, please contact Emma Spandrzyk in our employment team on 01530 564498 or via email at e.spandrzyk@timms-law.com.

Emma Spandrzyk
15 October 2020