• From the 1st November 2020 the new Job Support Scheme [JSS] will commence and will run until 30 April 2021. A review of the terms of the scheme will be undertaken in January 2021;
  • This scheme comprises of two schemes: JSS Open and JSS Closed, with the latter in effect for those businesses forced to close under lockdown arrangements as determined by the Government of each of the four nations;
  • Under the JSS Open, an employee will need to work a minimum of 20% of their normal hours for which they will receive their normal pay. The UK Government will pay a contribution of 61.67% of the usual pay for hours not worked, up to a maximum of £1,541.75. You will then pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month, and can top this up further if you wish. This will mean that an employee should receive at least two thirds of their usual pay for hours not worked and approximately 73% of their pay overall (20% of normal pay paid by Employer; 4% of normal pay paid by Employer (capped at £125 per month); 49% of normal pay paid by the UK Government (capped at £1,541.75 per month);
  • You will be responsible for paying NI and pension contributions on the full amount paid to the employee;
  • There must be a written agreement between you and your employee, agreeing to the changes;
  • Under the JSS Closed the employee will receive 67% of their normal wages, funded by the UK Government (up to a maximum of £2,083.33 per month). You will not be required to contribute, though can choose to top up, but must still cover the Employer NI and pension contributions;
  • There must again be a written agreement between you and your employee, agreeing to the changes;
  • You will be able to make your first claim in arrears from 8 December 2020, for pay periods ending and paid in November. Further guidance will be provided before the end of this month by HMRC;
  • All SMEs are eligible, and large business are eligible if their turnover has fallen due to coronavirus (more information on this is provided in link below);
  • You will be unable to claim for an employee who has been made redundant or is serving a contractual or statutory notice period during the claim period.

 

For more detailed information please see policy paper

 

Additional information is expected to be issued by the Government before the end of the week.

 

If you have any further queries or require Agreements in order to avail yourself of this scheme then please email your Creideasach Employment Law Specialist who will be happy to assist.