Further details on the JSS released by the Government.
Further details on the JSS released by the Government.
Following Rishi Sunak’s recent announcement about additional support for businesses and employees affected by the new coronavirus restrictions, the Job Support Scheme (JSS) has now been divided into two sub-categories: JSS Open and JSS Closed.
The purpose of JSS is to reduce the likelihood of redundancies and allow businesses to continue employing workers who are unable to work or who are working reduced hours due to the restrictions.
The below table highlights the key differences between JSS Open and JSS Closed.
| JSS Open
JSS Open
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JSS Closed
JSS Closed
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The below requirements apply to businesses who remain open but are subject to coronavirus restrictions:
The below requirements apply to businesses who remain open but are subject to coronavirus restrictions:
· To be eligible, employees must now work a minimum of 20% of their hours; this has decreased from the previous 33%;
· Employees will receive normal pay for the hours they work and two-thirds of their pay for the hours they do not work;
· The Government will top up the two-thirds of pay by 61.67%, the employer will then pay the remaining 5% and National Insurance and pension contributions of the full amount;
· The contribution by the Government is capped at £1,541.75 a month.
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The below requirements are relevant to businesses who have had to close as a result of the coronavirus tier restrictions:The below requirements are relevant to businesses who have had to close as a result of the coronavirus tier restrictions:
The below requirements are relevant to businesses who have had to close as a result of the coronavirus tier restrictions:
Employees will not be required to work their usual hours;
· Employees will receive two-thirds of their normal wages while they are unable to work due to the closure of the business premises;
· This will be funded by the Government and the employer will continue to contribute National Insurance and pension contributions;
· The contribution by the Government is capped at £2,083.33 a month.
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The following applies to both schemes:
· There is a requirement under both schemes for businesses to have a formal written agreement with the employee in which the employee agrees to the changes to their employment;
· Employers are unable to claim for any employees who are being made redundant or any employees who are currently serving their notice period;
· All small and medium-sized enterprises are eligible, as are large businesses provided they can show their turnover has been adversely affected by coronavirus;
· At present it is understood employers utilising either the JSS Open or JSS Closed scheme will have the option to top up each employee’s salary beyond the two-thirds should they wish. The Treasury is expected to publish guidance on this in due course.
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Key action: Any employers intending to utilise either the JSS Open or JSS Closed scheme must ensure they enter a formal written agreement with the employee in relation to these changes.
For more information in relation to the Job Support Scheme, please click here to view a policy paper published by the HMRC.
Please note: Nothing in this article constitutes legal advice and we are not liable for any reliance on the information provided. This is a rapidly changing subject, and whilst correct at the time of writing, circumstances may have changed since publication. Please refer to Gov.uk for up-to-date advice on the Government’s response to this issue.
To find out more about anything covered in this article, or to discuss the potential impact of COVID-19 on your business, please contact Kerrie Hunt or another member of Thrings’ Employment and Immigration team.
