Factsheet on the Job Support Scheme

The job support scheme opens on 1st November 2020 and will run for 6 months until April 2021. Any employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligible criteria for the JRB.

The scheme is designed to protect jobs in businesses who are facing lower demand over the winter months because of Covid-19. The scheme is to help businesses keep their employees attached to the workforce.

Employers will continue to pay employees for time worked and any hours not worked will be split between the employer and the Government through wage support and the employee through a wage reduction.

The scheme is to support businesses that need it most, with a main focus  on those that are being impacted by Covid-19 and who can support their employees doing some work but need more time for the demand of the business to recover.

Payment rules

  • The government will pay one third of any hours not worked up to a cap, with the employer also contributing one third. This ensures that employees can earn a minimum of 77% of their normal wages, where the Government contribution is not capped.
  • The government contribution will be capped at £697.92 per month.
  • Grant payments will be made in arrears.
  • Grant payments do not cover Class 1 employer NIC’s or Pension Contributions, these contributions will remain payable by the employer.
  • Usual wages will follow a similar methodology as for the CJRS, full guidance will be released soon.
  • Employers must pay employees contractual pay for any hours worked and the government contribution and employer contributions for hours not worked.

Employer Eligibility

  • Employers with a UK bank account and UK PAYE scheme can claim the grant.
  • Employers do not have to have previously used the Coronavirus Job Retention Scheme.
  • Large businesses will have to undergo a financial assessment test, the scheme is only available to those who have lower turnover than before Covid-19. Small and medium sized businesses do not need to undertake a financial assessment.
  • The expectation is that large businesses who use the grant, will not be making capital distributions such as share buybacks or dividend payments.

Employee Eligibility

  • Employees must be on an employers PAYE payroll on or before 23rd September 2020, meaning a Real Time Information (RTI) submission notifying payment to that employee must have been done on or before 23rd September 2020.
  • For the first 3 months of the scheme, employees must work at least 33% of their usual hours. The government will review whether to increase the minimum hours after 3 months.
  • Employees can cycle on and off the scheme and are not required to work the same pattern each month, however each short time working arrangement must cover a minimum period of seven days.

Hours of work

  • Employees must work at least 33% of their usual hours.
  • For any hours worked employees must be paid their normal contractual wage.
  • For hours not worked, employees will be paid up to two-thirds of their usual wage.
  • Employees cannot be made redundant or put on notice of redundancy during the period an employer is claiming the grant for the employees.

Making a claim

  • The scheme opens from 1st November 2020.
  • All claims are to be made via www.gov.uk from December 2020.
  • Grants will be payable in arrears meaning a claim can only be submitted after payments to the employee have been made and the payment has been reported to HMRC via a RTI return.
  • All payments will be paid monthly.

Checks made on the scheme

  • HMRC will be checking claims and payment will be withheld or paid back if a claim is found to be fraudulent or based on wrong information.
  • Employers must agree the short time working with employees and agreed in writing. This must be available to the HMRC if requested.

 Example payment

An employee on the JSS, usually works 5 days a week and earns £350 per week. The employer agrees for the employee to work 2 days per week, due to reduced demand. This is 40% of the employee’s usual hours.

  • Employer pays £140 for the 2 days worked.
  • For the 3 days not working (60% of hours, worth £210) they will earn 2/3 of pay, £140, which makes the total earnings £280 or 80% of earnings.
  • The Government grant to be paid will be £70. This is 1/3 of the hours not worked by the employee, or in this case 20% of the employee’s normal wages.

Job Support Scheme for Closed Businesses

The Job Support Scheme is being expanded to provide support to businesses who have legally been required to close by the Government due to Covid-19. The scheme will be available for 6 months from 1st November and will be reviewed in January.

The scheme will help businesses to support wage costs of employees and protect incomes, help limit unemployment and maintain employer/employee matches.

Payment rules

  • The grant per eligible employee is two-thirds of their normal pay up to a limit of £2100 per month.
  • The scheme will pay a grant to the employer calculated on the number of eligible employees who have been instructed to stop work.
  • Claims must not overlap and are to be made in monthly arrears.
  • Businesses forced to close due to workplace outbreaks by the local health authorities are not eligible for the scheme.
  • The employer must use the scheme to cover employees’ wages and pay relevant payroll taxes. All of the grant must be used to meet employee costs.
  • Grants do not cover Class 1 employer NIC’s or Pension contributions, these are payable by the employer.
  • Grants are to be used by employers to pay employee’s wages and help meet the JRB minimum income threshold.

Employer Eligibility

  • Employers with a UK bank account and a UK PAYE scheme registered on or before 23rd September 2020 can make a claim under the scheme.
  • The scheme covers businesses that have been legally required to close their premises.
  • It includes premises that have been restricted to delivery or collection only services.
  • Employers can only use the scheme for employees who cannot work.
  • Employers must have been instructed to stop work for a minimum of 7 consecutive days.
  • Neither the employer nor employee needs to have previously used the CJRS.
  • Employers will also be able to claim the Job Retention Bonus for employees provided they are eligible and have previously been part of the CJRS.

Employee Eligibility

  • Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for them.

Making a claim

  • Employers can make a claim monthly online at www.gov.uk from December 2020.
  • If employers’ premises reopen then they can claim under the JSS the same way as businesses on reduced demand if they meet the criteria.

 Checks made on the scheme

  • HMRC will be checking claims and payment will be withheld or paid back if a claim is found to be fraudulent or based on wrong information.
  • Employers must agree the short time working with employees and agreed in writing. This must be available to the HMRC if requested.
  • HMRC will publish names of employers using the scheme and employees will be able to find out if their employer has made a claim for them under the scheme. HMRC will also continue to operate a hotline for individuals to report fraudulent claims.

If you would like further guidance on any HR topics please contact Clover HR on 0121 516 0299 or email us at info@cloverhr.co.uk


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