Updated Guidance based on the Chancellors announcements on Thursday 22nd October 2020:
The Coronavirus Job Retention Scheme (CJRS) closes on Saturday 31st October. Any final claims need to made on or before Monday 30th November. The Job Support Scheme (JSS) comes into effect on Sunday 1st November and is set to replace the CJRS. As with its predecessor, the JSS seeks to help protect viable jobs with employers that are facing reduced demand over the coming months due to Covid-19.
The Job Support Scheme will run for 6 months from the 1 November 2020 until 30 April 2021.
The JSS is available to both businesses that remain open, as well as those required to close as part of the governments tier structure for managing the spread of Coronavirus.
Job Support Scheme - Open
The JSS Open will provide support to businesses that are open where employees are working shorter hours due to reduced demand.
Employees will need to work at least 20% of their usual hours and employers will continue to pay employees for the hours they work. 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 per month. Employers will 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 they choose. This means employees should receive at least two thirds of their usual pay for hours not worked.
The caps are reduced according to the proportion of hours not worked. Further guidance on this will be available on GOV.UK shortly.
Employers will need to cover all employer National Insurance and pension contributions.
Job Support Scheme – Closed
JSS Closed will provide support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by one of the four governments of the UK. This includes premises restricted to delivery or collection-only services from their premises and those restricted to providing food and/or drinks outdoors.
For JSS Closed, the UK government will fund two thirds of employees' usual wages for time not worked, up to a maximum of £2,083.33 per month. Employers will not be required to contribute, but they can top up the government’s contribution if they choose to. Employers will still need to cover all employer National Insurance and pension contributions.
Employers will be able to make their first JSS claim in arrears from 8 December, for pay periods ending and paid in November.
Employees will be able to check if employers have made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV.UK by searching 'Personal Tax Account: sign in or set up'.
Further information and guidance
Further information on the Job Support Scheme, including eligibility for the scheme, conditions and JSS calculations are included the Business Update kindly provided by Beststart Human Resources.
In addition, further details can be found at https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme