Further changes announced for the Job Support Scheme

Chancellor Rishi Sunak announced further changes to the Job Support Scheme (JSS), creating two variations – JSS Open and JSS Closed. Starting on 1 November 2020, and running for 6 months until April 2021, both grants will offer additional support for employees whose working hours may be reduced over the winter months.

JSS Open

The revised JSS Open will now require employees to work a minimum of 20% of their usual hours (down from the previously stated 33%) and of the remaining unworked hours, employers will contribute 5% (reduced from 33%) while the Government will pay 62%, up to a maximum £1,541.75.

The table below shows how earnings can vary depending on how many hours you work:

*Based on someone earning up to around £37,500 per annum.

JSS Open will be available to eligible employers with a UK bank account and UK PAYE schemes, even if they have not previously used the Coronavirus Job Retention Scheme (CJRS), and allow them to still claim the Job Retention Bonus (JRB) for each employee that meets the eligibility criteria. Larger businesses however will have to meet a financial impact test to determine if their turnover has stayed level or is lower now than before experiencing difficulties due to COVID-19. You can read more about the changes and how to claim for the grant in this helpful factsheet.

JSS Closed

For businesses who require extra support due to local or national restrictions, employers can apply for JSS Closed where the Government will pay their employees two thirds of their normal salary where they can’t work for a week or more, up to a maximum of £2,083.33 per month. There will be further guidance on JSS Closed published by the end of October.

Employers must cover all employer National Insurance and pension contributions on both JSS grants and will be able to make their first claim in arrears from 8‌‌‌ ‌December, for pay periods ending and paid in November.

With HMRC confirming in advance that they will be conducting grant claim checks, it is important that employers agree the new working arrangements with their staff, making any changes to the employment contract by agreement and notifying the employee in writing which should be kept on record for 5 years.

If you require further information or support, please get in touch with your usual EQ or EQ contact and we can discuss this with you. Alternatively, please call one of our offices.