Residential property
29 Sep 2020 News

Job Support Scheme (JSS)

The new JSS was announced by the Chancellor on 24th September 2020 as part of the government’s ‘Plan for Winter’ and will run from 1st November 2020 for a period of six months. The JSS has been brought in to protect jobs in businesses who expect a lower demand over winter. The Self-Employment Income Support Scheme will also be extended for self-employed individuals.

The JSS applies as follows:

  • An employee must be working and being paid for at least one-third (33%) of their normal hours. Of the remaining 67% of hours not worked by the employee, one-third (22%) is paid by the employer and one-third (22%) is paid by the government. The government plans to review the minimum hours after the first three months of the JSS.
  • The level of government contribution is based on the employee’s usual salary capped at £697.92 per month.
  • Employees should therefore receive at least 77% of their pay (if not subject to the government cap).
  • Employers must agree to any short time working arrangement with the employee in writing.
  • Employers will be reimbursed in arrears for the government contribution. Employers are responsible for class 1 employers NICs and pension contributions.
  • Employees must have been on the employers PAYE payroll and RTI submissions must have been made on or before 23 September 2020. Each short time working arrangement must cover a minimum period of seven days.
  • Employees can be rotated on and off the JSS.
  • The JSS is not available for employees who have been made redundant or given notice of redundancy.
  • All small and medium sized businesses are eligible. Large businesses are only eligible if their turnover has fallen during the pandemic and the government expects they will not be making capital distributions (i.e. dividends) while using the JSS.
  • The JSS is available to employers throughout the UK with a UK bank account and UK PAYE scheme.
  • Employers did not have to have used the furlough scheme. Employers who retain furloughed staff on shorter hours will still be able to claim under both the JSS and the Job Retention Bonus.
  • Access to the JSS will not affect employers’ access to the Job Retention Bonus (JRB) as long as all relevant eligibility requirements are met. We discussed the JRB in our summer update. Further guidance on the JRB is still expected to be published.

Further guidance will be published and we will keep you up to date with this. In the meantime the government has published a fact sheet which can be accessed here

 

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