Job Support Scheme
With the end of the Coronavirus Job Retention Scheme in sight (31 October 2020), the Chancellor has outlined the structure of an additional scheme, the Job Support Scheme, ('JSS') that will start from 1 November 2020 and run for an initial 6 months.
The JSS is intended to move away from the furlough scheme and only support viable jobs, roles that are still required but face reduced hours due to reduced demand flowing from the economic impact and the continuing restrictions.
As such, to benefit from the scheme, employees must work at least 33% of their usual hours.
Employers will have to wait for the guidance and legislation to be released by the government to see the detail of the scheme and whether it will be a viable option. But we know from the introduction of the CJRS that this may be inconsistent and take several iterations before all questions are answered.
The main points known so far are:
1. Employees must be working at least 33% of their usual hours.
2. For the hours lost and not worked, the government and employer will each pay one third of the equivalent salary.
3. The government contribution will be capped at £697.92 per month.
The example provided by the government shows that an employee working 33% of their normal hours will be paid in full for that 33% by their employer. The government and employer will then pay an additional 22% each (66% x 2/3), subject to the cap, resulting in the employee receiving 77% of their normal pay.
* All employers are eligible however, large businesses must show a fall in turnover, as a result of the COVID-19 crisis, in order to apply.
* Both employees and employers are eligible even if they did not use the CJRS scheme previously.
* Employees must have been employed on 23 September 2020 in order to be eligible.
* Employers who are eligible to claim the Jobs Retention Bonus can do so alongside the JSS.
Employers are not able to serve redundancy notices on employees who are on the JSS. Whether this means consultation can take place or not is unclear.
Our expert Employment Law Team work with employers to understand their business and the problems they face, find a tailored and pragmatic solution that will suit their needs and help implement any changes. For more information contact us on 01603 693500 or email us using the 'Make an enquiry' form on our website.
*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.