Job Support Scheme – Further Explained
23 October 2020
23 October 2020
Job Support Scheme – Further Explained
Following on from our article on the 1st October 2020, Rishi Sunak has announced further changes to the Job Support Scheme (JSS). The announcements include development of the Job Support Scheme (Open) and Job Support Scheme (Closed).
Job Support Scheme (Open)
This scheme is relevant to the employees of business which remain open but are facing reduced demand and so, do not need their normal levels of staffing. The key developments include:
As an employee, you will receive at least 73% of your normal wage, where you earn £3,125.00 or less per month.
Which employers can take part?
As we previously announced here, Large Businesses may be able to take part in the scheme, but must pass the ‘financial assessments’ test. i.e.
Further detail of the ‘financial assessment’ test can be found here
Employers can still qualify for the scheme if they have previously furloughed employees and can still qualify for the ‘job retention scheme bonus’ for those employees on shorter hours. Further information on the Job Retention Scheme bonus can be found here.
Job Support Scheme (Closed)
Following on from Aspires updates which can be found here, the government have provided further clarity of how the JSS will extend to workplaces which have been forced to close as a result of the COVID 19 restrictions imposed by the four Governments of the UK.
Where a workplace has been legally instructed to close their premises because of local Government restrictions, their employees may qualify for the JSS.
What does this mean? – The government have announced that the employee will still receive 2/3 of their normal wage whilst not working.
The 2/3 will be paid by the Employer and fully refunded by the Government up to a maximum contribution of £2,083.33 per month whilst the restrictions are in place.
The employee may also be entitled to further support in the form of universal credit if applicable.
Which employers qualify?
In the addition to the general Job Support Scheme eligibility criteria above, employers are eligible to claim JSS closed if:
Businesses premises required to close by local public health authorities because of specific workplace outbreaks are not eligible for this scheme
A further detailed list of eligible employers is expected to be announced by the Government at the end of October.
Other Key Points
Employers cannot claim JSS where their employees
Aspire Comment
This will come as a huge relief to those sectors that have been severely affected by Covid-19 already and those that will struggle beyond 31 October 2020 once the CJRS ends.
We are working with a number of clients with employment guidance, such as restructuring, redundancies, home working and absence policies. Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.