Update to the Job Support Scheme (JSS)
The Government has announced further changes to the Job Support Scheme (JSS) which is due to come into force on 1 November 2020 and is a replacement to the Coronavirus Job Retention Scheme (the furlough scheme) which is ending on 31 October 2020.
Details of the changes can be found here: Plan for jobs: Chancellor increases financial support for businesses and workers and here: Job Support Scheme Open Factsheet.
Originally, the JSS required an employee to work a minimum of 33% of their normal working hours. They would be paid as normal by their employer for the hours worked. Their employer and the Government would pay 1/3 each for the hours not worked.
Under the changes announced, the minimum hours requirement is being reduced from 33% to 20% and the employer contribution for the hours not worked is reduced to just 5%. This means that the Government will pay 61.67% for hours not worked up to a cap of £1,541.75 per month with the employer contributing 5% of non-worked hours up to a cap of £125 per month. Employers can top up employees wages above the 5% contribution at their own discretion.
These changes are likely to be of significant benefit to employers as the requirement to work 33% of normal working hours and the high employer contribution were both viewed as barriers to employers accessing the scheme.
The expanded JSS which applies to those businesses who are legally required to close due to national or local restrictions is not affected by these changes. For employers who fall in that expanded scheme, the Government will pay 2/3 of each employee’s salary up to a maximum of £2,100 a month with no employer contribution to the wages required.
The Job Retention Bonus Scheme is also not impacted by these changes.
If you need any further details on the JSS, please contact Moorcrofts Employment Partner, Matt Jenkin.