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23rd October 2020

COVID-19 Update: Job Support Scheme Announced (Last update: 23.10.20)

A factsheet outlining the Job Support Scheme is available for download here

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Alternatively, you can read the update here:

The Coronavirus Job Retention Scheme (CJRS) is coming to an end on 31st October 2020. This will be replaced by the Government’s new Job Support Scheme (JSS) which will come into effect from 1 November 2020 and will be available to employers for 6 months.

The aim of the JSS is to support viable jobs, with targeted support for firms who need it most. The JSS will be open to all employers across the UK, even if they have not previously used the CJRS.

It appears that the scheme is designed to get employees back into work and off furlough, as opposed to allowing staff to remain not working at all and getting paid. As such where roles are no longer required or there is insufficient work to occupy employees for at least 33% of their contracted hours, then an employer will need to explore redundancies, layoffs and variations to terms and conditions of employment.

How will the JSS work?
Employees must work at least 33% of their normal hours, which will be paid in full by their employer. For the remaining contractual hours which are not worked, the Government and employer will contribute 1/3 of the employee’s wages each. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.

In summary where employees work at least 33% of their contractual hours, the Government say employees will receive at least 77% of their pay (with 55% being paid by employers and 22% being funded by the Government). Where an employee works for more than 33% of their normal contracted hours, the employer’s overall contribution to their pay would be higher.

Eligibility
All SME’s are eligible for the JSS and larger businesses will be eligible where they can demonstrate their turnover has fallen as a result of Covid-19. The new JSS will also be extended on similar terms to the self-employed grant.

We expect further details of the JSS, eligibility and funding to be provided in the upcoming press conference.

*All information is correct at the time of publishing. Use of this material is subject to your acceptance of our terms and conditions.

Napthens LLP

Employment Law Specialists

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