The new Job Support Scheme (JSS): The rules in summary

In addition to the frequently asked questions that our employment team published on the Chancellor’s recently announced Job Support Scheme (JSS), we have also created this helpful summary of the new scheme rules for our clients:

  • The JSS is being expanded to provide temporary support to businesses whose premises have been legally required to close as a direct result of Coronavirus restrictions set by one or more of the four governments of the UK.
  • Businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible for this scheme.
  • The JSS is available to employers for six months, from 1 November 2020 and will be reviewed in January 2021. Further guidance will be published in the coming weeks.
  • All employers with a UK bank account and a UK PAYE scheme registered on or before 23 September 2020 can claim the scheme.
  • The scheme will pay a grant to the employer calculated on the number of eligible employees who have been instructed to and cease work at the relevant premises.
  • The grant per eligible employee available from the UK Government is two-thirds of their normal pay up to a limit of £2100 per month. Further detail on how normal pay is calculated will be set out in guidance.
  • Employers will only be able to use the scheme for employees who cannot work (paid or unpaid) for that employer.
  • Employees must be instructed to and cease work for a minimum of 7 consecutive (or calendar) days. An employee can return to work at a later date.
  • These payments will be taxable, and employers will be required to cover employer NICS and automatic enrolment pension contributions in full, where applicable, but are not required to make further contribution to wage costs. However, employers can top up employee pay if they wish.
  • Neither the employer nor the employee needs to have previously used the Coronavirus Job Retention Scheme.
  • Employers will be able to claim the Job Retention Bonus for employees provided they are eligible and previously part of the CJRS.
  • 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.
  • The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer.
  • Employers will be able to make a claim on a monthly basis online through gov.uk from December 2020 and this will be reviewed in January 2020.

Should you have any questions about the scheme or require any assistance with your employment arrangements please do not hesitate to contact the co-head partners of our employment department.  Ewan Keen can be reached at 020 3206 2724 (ewan.keen@smab.co.uk) or Tamara Ludlow at 020 3206 2739 (tamara.ludlow@smab.co.uk).