|Coronavirus Job Support Scheme (JSS) – What we know so far
1. Why has the JSS been introduced?
To support viable UK employers who face lower demand due to COVID-19, and to keep their employees attached to the workforce, the government will be introducing a new Job Support Scheme from 1 November 2020.
2. Is there a minimum period of work for employees to qualify for the scheme?
Employees will need to work a minimum of 33% of their usual hours.
3. What will be the government’s contribution towards the costs?
For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month.
4. What will employees receive?
Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped.
If an employee works reduced hours the employer pays for that. In addition, the employer and government pay one-third of the lost pay each (up to the cap).
So for someone on £2,000 a month working half their hours, they’d get £1,000 normal pay plus £333 extra from their employer and £333 from the government.
5. How will employers be reimbursed for the salary costs?
Employers will be reimbursed in arrears for the government contribution.
6. Can employees who are on redundancy notice be included?
No. The employee must not be on a redundancy notice.
7. How long will the scheme run for?
The scheme will run for six months from 1 November 2020 and is open to all employers with a UK bank account and a UK PAYE scheme.
8. What about if employers are already in the Job Retention Scheme and want to claim the Job Retention Bonus in January 2021?
Employers can claim both the jobs support scheme and the jobs retention bonus.
9. Which employers qualify for the scheme?
All Small and Medium-Sized Enterprises (SMEs) will be eligible; large businesses will be required to demonstrate that their business has been adversely affected by COVID-19, and the government expects that large employers will not be making capital distributions (such as dividends), while using the scheme.