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Hi <<First Name>> here are this week's updates
This weekend marks the end of CJRS (Furlough) and the launch of the new Job Support Scheme (JSS). THE TRICK – full guidance has not yet been published! However, it is expected later today and here is what we do know:
Job Support Scheme
The generosity of the scheme has been increased to account for the increased pressure on employers, and the Government has named the scheme ‘JSS Open’ for businesses in Tiers 1 and 2 that are able to remain open and ‘JSS Closed’ for businesses in Tier 3 that are forced to close.
JSS Open
To be eligible, an employee must work a minimum of 20% of their usual hours; this has been reduced from a previously required 33%. Employers are to pay the contracted wage for these worked hours. From the hours not worked, the employer will be required to pay 5% of the usual wage capped at £125 per month, with the Government funding 61.67% of the usual wage via the JSS capped at £1,541.75 per month. These caps mean the maximum reference salary will be £3,125.
As an example, an employee with a usual monthly wage of £1,000, will be paid:
- £200 by their employer for the 20% of hours worked (ie. 20% of £1,000)
- £40 by their employer for 5% of the hours not worked (ie. 5% of £800)
- A further £493.36 by the Government for 61.67% of the hours not worked (ie. 61.67% of £800)
This provides a total of £733.36, so the employee will receive a minimum of 73% of their usual wage if this doesn’t exceed £3,125. There is no prerequisite of having used the Coronavirus Job Retention Scheme (CJRS).
JSS Closed
The scheme has been extended for businesses that are in the Tier 3 areas and are legally required to close, or whose services are restricted to delivery or collection only, for a temporary period due to regional or national restrictions.
The Government JSS grant will cover two-thirds of a worker’s usual wages where they are not able to work due to their employer having to close. This will be capped at £2,083.33 per month. Employers will be required to pay the employer national insurance and any pension contributions.
Eligible employees are those whose employer’s business has been legally required to close and therefore the employee is not able to work. This will need to be the case for a minimum period of seven consecutive days.
Further considerations
- There are no eligibility tests for small and medium-sized businesses. However, larger businesses with 250 employees or more on all of their payrolls on 23 September 2020 are required to show that their turnover has either remained level or fallen as a consequence of the coronavirus
- An employee must have been on the payroll on 23 September 2020, with an RTI submission reporting a payment for the employee by that date.
- Employees who left after 23 September and then re-hired are eligible.
- Employees can be flexibly placed on and off the scheme, with the minimum period of seven consecutive days when on the scheme each time.
- Employers are required to have a written agreement in place of the temporary working arrangement for each employee when placed on the scheme.
No employer national insurance or pension contributions are included in the Government JSS grant, and these are therefore still payable by the employer. A further restriction is that employers will not be able to make employees redundant or issue redundancy notices to employees whilst they are on the Job Support Scheme. Employers will be able to make claims online from 8 December 2020, on a monthly basis in arrears once an RTI submission has been made.
THE TREAT – Here at Women Who Count, we will be reading through all the updates from the government this weekend so we can give you the complete update next week.
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Wishing you and your family a very happy Halloween
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Disclaimer: Advice shared in this newsletter is intended to inform rather than advise. We will accept no responsibility for any financial loss incurred.
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