The UK Government’s Job Support Scheme replaces furlough on the 1st November, but how does it work and how will it benefit you, as a business? With so much confusion in the world right now, this brief guide aims to provide a little clarity where your career and money are concerned.
Grab a coffee and relax as we run through the most important bits that you really need to know about.
First, the basics: The Job Support Scheme (JSS), is made up of JSS Open and JSS Closed and will run for 6 months. JSS Open focuses on businesses that are remaining open but face reduced demand, whereas JSS Closed is aimed at businesses who are forced to close because of coronavirus.
So what can you expect from the two schemes?
Job Support SchemeLet’s start with JSS Open.
Employees on the JSS Open scheme will now receive up to 73% of their normal wage. However, to qualify, employees must work a minimum of 20% of your normal hours and earn less than the Government’s contribution cap (roughly £37,500 a year).
What about the hours that employees cannot work? Your employers will need to cover 5% of your wage and the state will cover 62%. This means you will lose a third of your usual wages.
Here are some things worth knowing:
- Only certain employers can participate. Small and medium-sized businesses (having less than 250 employees on the 23rd September 2020) are eligible. Businesses with more than 250 members of staff will be required to take a financial impact test.
- Employees must have been working for the company on the 23d September 2020 to be eligible.
- Employees on zero-hours and temporary contracts and PAYE paid agency workers are eligible for the scheme.
- Employers can opt to pay more than the 5% minimum contribution for unworked hours.
If your business has been legally forced to close or partially shut down, you may be eligible for the JSS Closed scheme. Under this scheme, the state will pay your employer 67% of your wages, up to a maximum £2,083/month.
Here are some important factors to be aware of:
- Your employer will not have to contribute towards your salary; however, they will have the option of ‘topping up’ your wages if they wish to do so.
- Like the JSS Open scheme, only certain employers will be eligible to participate and businesses with more than 250 employees will need to take a financial impact test.
- You must have been working for your employer on the 23rd September 2020 to be eligible for this scheme.
- Employees do not need to have worked for seven consecutive days to qualify.
Hopefully, this brief guide helps you to get an idea of where you stand with the financial help that is available to you. For more detailed information, visit https://www.gov.uk/government/publications/job-support-scheme.
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