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HR Blog

Changes to the Government's Job Support Scheme

Posted by admin on 2020-10-23 13:22:00

In recognition of the challenging times ahead, the Chancellor announced today increased support to the Job Support Scheme (JSS) which starts on 1 November and runs to 30 April 2021.

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Here is a summary of the key points for your information.

Key Points

  • Employees can now work for a minimum of 20% of their contracted hours part-time in a week to qualify for the Job Support Scheme (was previously 33%). This means someone working one day a week will be eligible.
  • For the time worked, employees must be paid their normal contracted wage.
  • For every hour not worked:
    • the employer will pay 5% of the usual hourly wage (previously 33%) and 
    • the Government will pay 61.67% of hours not worked (previously 33%).
  • The Government contribution will be capped at £1541.75 per month (previously was to be £697.92 pm). 
  • Employers will continue to receive the £1,000 Job Retention Bonus
  • Employers will not be able to make a claim for JSS where the employee is made redundant or put on notice of redundancy.
  • Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short-time working arrangement must cover a minimum period of seven days.
  • For staff on variable hours, their pay will be measured using a ‘usual hours’ approach, from the methodology used for the Job Retention Scheme, which is the higher of the employee’s average hours worked in the tax year 2019/20; and their actual hours worked in the corresponding calendar period in the tax year 2019/20.
  • The scheme will be open to all small/medium businesses and larger businesses that can show an impact on revenues.

I hope this helps, if you have any questions please get in touch.