Furlough out, Job Support Scheme (JSS) in

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25th September 2020 – the CJRS winds down through October with government support reducing to a maximum of 60% of wages up to a cap of £1,875 per month. Read more about the final months of the CJRS here.

Under pressure to protect jobs, the Chancellor has unveiled a 6 month support scheme for viable jobs with the government meeting up to one third of an employee’s unworked normal wages up to a maximum monthly cap.

In due course further guidance will define what ‘viable’ means and whether for example an employer might be able to cancel redundancy notices issued on or before 24th September 2020 in order to take advantage of the new scheme.

The brief details we have at the moment:

  • The JSS applies to viable roles where the employer is able to engage employees to work at least one third of their normal hours.
  • The scheme will run for six months from 1 November 2020.
  • It’s open to all SMEs and larger employers providing the larger employers can show that their turnover has fallen because of covid-19 & they will not be issuing dividends etc..
  • An employee will have to work and at least one-third of their normal hours (33%) and these will be paid as normal by the employer.
  • For the employee’s remaining hours, one-third (22%) is paid by the employer and one-third (22%) is paid by government, these are based on the employee’s usual salary, capped at £697.92 per month. Adding all these up shows that the employee will receive at least 77% of their pay, if the cap doesn’t apply.
  • While we’re not certain yet it appears that the JSS will not be available for employees who have been given notice of redundancy.
  • The JSS will apply to all UK employers with a bank account and UK PAYE scheme, whether they used the furlough scheme or not.
  • We believe employers who retain furloughed staff on shorter hours will be able to claim under both the JSS and the Jobs Retention Bonus.

 

Further guidance on the JSS will be published in due course and the above is our indicative understanding only at this stage – please don’t rely on this information until further guidance from .gov has appeared.

Further help for the self employed is on the way too

For the self-employed the Self Employment Income Support Scheme (SEISS) will be extended for those currently eligible and who continue to actively trade but face reduced demand due to covid-19. The SEISS will be extended from November until end January with a taxable grant worth 20% of average monthly trading profits, up to a total of £1,875. A further grant (we don’t have the details at present) will be available for from February to end April 2021.

If you’re thinking of outsourcing your HR or employment law needs, why not contact myHRdept? Call us on 01628 820515 to discuss your requirements or contact us and we’ll call you back.

 

 

 

 

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