Covid-19 Business Update 21 – Monday 26th October 2020
Following our previous update on 28th September 2020, please find below notable changes that have been released via gov.uk.
Job Support Scheme (JSS) – UPDATE
When originally announced, the JSS, which will come into effect on 1st November saw employers paying a third of their employees’ wages for hours not worked and required employers to be working 33% of their normal hours (see update 20).
Recognising the pressures businesses in some sectors and areas are facing, on 22nd October 2020, the Chancellor announced the following updates:
Job Support Scheme (JSS) Open
This will provide support to businesses that are open where employees are working shorter hours due to reduced demand.
The employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked.
Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked, this will be made up of contributions from the employer and from the government.
The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish.
The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month.
This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.
Job Support Scheme (JSS) Closed
This is for businesses who have been legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments of the UK.
Each employee who cannot work due to these restrictions will receive two thirds of their normal pay, paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month, although their employer has discretion to pay more than this if they wish.
You’ll be able to make your first JSS claim in arrears from 8th December, for pay periods ending and paid in November.
Employers will continue to receive the £1,000 Job Retention Bonus. The Job Support Scheme Closed for businesses legally required to close remains unchanged.
Further information on how to make a claim will be published by the end of this month.Return to our Dedicated Page for Covid-19 Client Updates