JOB SUPPORT SCHEME (JSS) - revised 22/10/2020

The scheme runs 6 months from 1 November 2020, the rules were changed on 22 October 2020.

Employers using the scheme can also qualify for the Job Retention Bonus subject to conditions of that scheme.  It is not necessary to have previously furloughed an employee (made a job retention scheme claim) in order to use JSS.

  • Employees must be on the employers RTI before 23 September 2020.
  • The minimum hours required for employees to work has dropped from 33% to 20% and the employer contribution for non-worked hours has dropped from 1/3 to 5%
  • Employees can cycle on and off the scheme. Each short-time working arrangement must cover a minimum period of seven days.
  • The government will pay 61.67% of the hours not worked (up to a cap of £1,541.75), the employer will contribute just 5% of the hours not worked (capped at £125).  The employee will be unpaid for a third of the hours not worked.
  • The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer. “Usual wages” calculations will follow a similar methodology as for the Coronavirus Job Retention Scheme.
  • Employers must pay employees their contracted wages for hours worked, and the Government and employer contributions for hours not worked.
  • Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.
  • Employers must agree the new short-time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing. This means that new agreements with employees will be needed if the right to put an employee on short-time working has not already been reserved in an employee’s employment contract or previously been agreed in writing.                                               

Example-Average worker on furlough

Andrew normally works 5 days a week and earns £1,400 a month, working in a restaurant in the hospitality sector.

His company is suffering reduced sales due to coronavirus.

Rather than making Andrew redundant, the company puts Andrew on the Job Support Scheme, working 20% of his usual hours.

His employer pays Andrew £280 a month for these hours.  And for the time he is not working (80%), he will get 66.67% of his pay for that time. His total wage package is 73%, equal to £1,027.

The Government will give a grant worth £691 (61.67% of hours not worked) to Andrew’s employer to support them in keeping Andrew’s job, and his employer will pay a further £56 for hours not worked (5% of wages).

In addition, the employer will cover the Employer NICs and auto enrolment pension contribution on the payment (£56).

His employer may also be eligible for the Job Retention Bonus worth £1,000, this would cover 94.6% of the employer’s total costs for retaining Andrew on the JSS between November and January.

Any household, with no children or disabilities, that is entitled to UC will see an increase in their entitlement if their earnings fall, equal to 63p per £1 of earnings lost.