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Further information about the Job Support Scheme

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The Job Support Scheme and redundancies

Replacement scheme

The Coronavirus Job Retention Scheme (CJRS), which enabled businesses to furlough staff, closes on 31 October 2020 . To help avoid redundancies from this point, the Chancellor has announced a new Job Support Scheme (JSS).

It opens on 1 November 2020 for six months, i.e. until 30 April 2021 . As with the CJRS, applications will be submitted online and grants paid in arrears.

What is the JSS?

Under the JSS, the business pays an employee for any time worked. This must be at their normal contractual wage. The cost of hours not worked is then be split three ways, between the employer, the government (through wage support) and the employee (through a wage reduction).

The government’s wage support contribution is capped at £697.92 per month.

Minimum hours

For the first three months of the JSS, an employee must work at least 33% of their usual hours. If not, they won’t be eligible. After three months, the government will consider increasing the minimum working hours threshold.

You remain responsible for all Class 1 employers’ NI and pension contributions under the JSS - there is no government support here.

Tip. You can cycle employees on and off the JSS as you wish (assuming they are eligible) and they don’t have to work the same pattern each month.

Date of employment

However, whilst you have flexibility, each short time working arrangement agreed for JSS purposes must last at least seven days.

To be eligible for a JSS grant, an employee must have been on your RTI PAYE payroll on or before 23 September 2020 . You cannot make a JSS application for staff employed after this date.

Redundancy situation

Employees cannot be given notice of redundancy, or be in the process of being made redundant, during the period for which you are claiming a JSS grant for them. If this were to happen, you would be liable to repay any JSS grant already claimed.

HMRC will be checking all JSS claims carefully and there will be tough penalties for wrongful and fraudulent claims.

Tip. Whilst an employee cannot be given notice of redundancy or made redundant during a JSS claim period, they may be made redundant afterwards. This option remains open to you.

Tip. You must notify employees in writing about the agreed short time working arrangements - this can’t be via a verbal arrangement. All documentation must be made available to HMRC on its request. Further JSS details, including how to make an application can be found on GOV.UK (see The next step ).

For further information about the Job Support Scheme, visit http://www.tips-and-advice.co.uk , Download Zone, year 22, issue 02.