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What is the Job Support Scheme (JSS)?

Yesterday saw the announcement of the Job Support Scheme (JSS) from the Chancellor. This scheme is to replace the furlough scheme which has been in place from March and ends on 31 October.

After the announcement, details trickled out throughout the afternoon, providing some clarity and further information. There have been some criticisms of the new scheme in that it hasn’t gone far enough especially for those industries that are required to be closed. However, it is clear from the detail that the JSS is to protect viable jobs throughout the winter that will be affected by the Coronavirus pandemic.

Here are the key points of the JSS we know so far…

  • The JSS will run from 1 November 2020 to 31 April 2021.
  • Employees will need to work a minimum of a 33% of their usual hours.
  • For the hours not worked by the employee, both the employer and the government will pay 1/3 each of those hours.
  • The level of grant will be calculated based on an employee’s usual salary, capped at £697.92 per month.
  • The grant will not cover Class 1 employers NIC or pension contributions- the employer must pay.
  • The minimum of 33% of hours worked may increase after 3 months.
  • Employers are still able to claim the Job Retention Bonus.
  • All SME’s are eligible with restrictions for larger businesses where turnover has fallen during the Coronavirus pandemic.
  • The scheme can’t be used during an employee’s redundancy notice period.
  • “Usual wages” will follow “similar” methodology as the Coronavirus Job Retention Scheme.
  • Employees need to be on employers RTI submission on or before 23 September 2020.

Although this is a generous scheme, initial thoughts are that it may not be enough to deter some businesses making redundancies.

There will be some published guidance out in due course so watch this space!

Will you be using the JSS?

What is the Job Support Scheme (JSS)?

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