New Job Support Scheme

Following on from Boris Johnson’s announcement earlier this week that there would be a series of new restrictions to try to stop the spread of coronavirus, the Chancellor yesterday revealed details of the Job Support Scheme (JSS) that will replace furlough when it ends on 31 October.

The government message is that the JSS is designed to protect viable jobs in businesses who are facing lower demand over the winter months due to COVID-19.  The government will support the wages of people in work, giving employers the option to keep people in work on shorter hours, rather than make them redundant.

The JSS will open on 1 November 2020 and run for six months.

Under the new JSS, employers will continue to pay employees who are working at least 33% of their usual hours for the first three months of the scheme (this may be increased).   Employees will be paid for time worked but the cost of hours not worked will be split between the employer, the Government and the employee. The Government will pay a third of hours not worked up to a cap of £697.92 a month, with the employer also contributing a third.

It is worth noting that employers will not be able to give employees notice of redundancy while claiming under the JSS.

The Treasury has produced a factsheet which sets out more details on the eligibility criteria for employers and employees, the wages covered, how employers can claim and how HMRC will carry out checks.

We Can Help You

We will be sending out more details on this as we get them and also consider the support available to zero-hours workers and the self-employed.  If you would like any more information, please get in touch with our specialist Employment Law team through this website or by calling 0330 404 0778.

Our partners at Ashtons HR Consulting are also on hand to assist you.

This information is correct at 11am on 25 September 2020.