A new scheme will be introduced from 1st November to protect viable jobs in businesses who are facing lower demand over the winter months due to Coronavirus.
The headline details
The JSS will run for six months, with the government making a contributions towards the wages of employee’s, who are working fewer than normal hours due to decreased demand.
In order to support only viable jobs, employees must be working at least 33% of their usual hours. The level of grant will be calculated based on employee’s usual salary, capped at £697.92 per month.
The employer will continue to pay its employee for time worked, but the cost of hours not worked will be split between the employer, the Government (through wage support) and the employee (through a wage reduction), and the employee will keep their job.
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
- Beth normally works 5 days a week and earns £350 a week. The business she works for is suffering reduced sales due to coronavirus. Rather than making Beth redundant, the business puts Beth on the Job Support Scheme, working 2 days a week (40% of her usual hours).
- Her employer pays Beth £140 for the days she works.
- And for the time she is not working (3 days or 60%, worth £210), she will also earn 2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.
- The Government will give a grant worth £70 (1/3 of hours not worked, equivalent to 20% of her normal wages) to Beth’s employer to support them in keeping Beth’s job.
The government has published a four-page factsheet here – JSS Factsheet
How will this work for directors and what about businesses that have no income at all? We will have to wait for further guidance to see the full details of the scheme so watch this space!