Job Support Scheme (JSS) – Open and Close.

The Furlough Grant scheme (Job Retention Scheme) is coming to an end on 31st October 2020 and the new Job Support Scheme (JSS) will take its place. We have already mentioned this in previous blogs but very recently the Chancellor of the Exchequer has just made the JSS more attractive in order to help business. There are now two JSS schemes, JSS Open and JSS Closed.

Job Support Scheme (JSS) Open

JSS Open is similar to the original JSS announced 24th September but instead of the employee having to work a third of their regular hours they only have to work 20% of their regular hours which is 1 day a week if they work 5 days a week. The employer must pay the employees for the hours the employee works, so a minimum of 20%.The Government will then pay 61.67% of the hours not worked up to a maximum of £1,541.75 per month and the employer will pay 5% of the hours not worked. This means the employee will get paid at least 73% of their normal monthly salary where the normal salary they earn is £3,125 a month or less. The employee can of course work more than 20% of their normal hours, this is just the minimum they must work to get the JSS Open money.

Cost to the employer if the employee works only 20% of their regular hours is 25% of regular salary plus the Employer NI and pension on the full amount the employee gets paid.

Job Support Scheme (JSS) Closed

JSS Closed is available when an employer has been legally required to close their premises due to Covid restrictions set by Government.

Each employee that is not able to work due to the restrictions will get two thirds of their normal pay. This must be initially paid by the employer to the employee and then claimed back from the Government up to a maximum of £2,083.33 per month. Employer can pay more if they wish. Employees may also be entitled to Universal Credits.

Next Step

JSS starts 1st November 2020 and will run for 6 months until 30th April 2021with the Government reviewing in January 2021. Employers will be able to claim JSS money in arrears from 8th December 2020. You do not have to have been on Furlough in order to benefit from the JSS.

Employers can only claim for employees that were in their employment on 23 September 2020. The regular salary used as the reference salary will be that paid in the last pay period ending on or before 23 September 2020 or if the employee was on Furlough then the last pay period ending on or before 19 March 2020.

We are still awaiting more detail but it looks like the JSS claim will be made through PAYE.