The welcomed announcement of the Furlough Scheme’s successor, the Job Support Scheme, hit headlines yesterday (Thursday, 24th September). Although, at the time of writing, we are awaiting further guidance, here’s what we know so far:
- The new Job Support Scheme or “JSS” will begin on 1st November, the day after the end of the Furlough Scheme.
- Employees must work at least 33% of their usual working hours to be eligible for the scheme.
- The Government will pay a third of hours not worked up to a cap, with the employer also contributing a third. This will mean the employee will earn a minimum of 77% of their normal wages (where the Government contribution has not been capped).
- For every hour not worked by the employee, both the Government and employer will pay a third each of the usual hourly wage for that employee. The Government contribution will be capped at £697.92 a month. The employee will earn 100% of wages for any hours worked.
- To be eligible for the JSS the employee must have been on the employer’s payroll on or before 23 September 2020.
- Employees do not need to have been placed on furlough leave to qualify for the JSS.
- Larger businesses will be subject to a financial assessment test. The scheme is aimed at those businesses who have experienced difficulties during the pandemic and as a result have had a reduced turnover. SMEs will not be subject to a financial assessment test.
The JJS’ aim appears to be similar to that of the Furlough Scheme however there is a focus on keeping people at work as well as employed and is designed to continue preventing as many redundancies as possible in the winter period due to the coronavirus pandemic.
We will continue to provide updates on the new JSS however if you have any questions then please contact a member of our Employment Team on 0116 289 7000.