Just when you thought you were prepared for the changes ahead, the Chancellor of the Exchequer announces new changes to the Job Support Scheme, which will replace the CJRS furlough scheme with effect from 1 November.

The JSS and the expanded JSS will now be referred to as the Job Support Scheme Open (JSSO) and the Job Support Scheme Closed (JSSC).

The JSSO will protect jobs in businesses which are open but facing lower demand or business difficulty due to Covid-19 crisis. Under the new JSSO scheme:

  • Employees must work at least 20% of their normal hours (rather than 33% as previously announced). Hours worked will be paid as normal by the employer;
  • For the hours not worked:
    • Government pays 61.67% of wages up to a cap of £1,541.75 per month
    • The employer pays 5% (reduced from 33% as previously announced) plus NICs and minimum auto-enrolment pension contributions

The JSSC remains the same, which applies where businesses are legally required to close their premises as a result of restrictions imposed by one of the four UK governments. Where employees are unable to work for a week or more, under the JSSC:

  • Government pays 67% of wages up to a cap of £2,100 per month
  • Employers pay NICs and minimum auto-enrolment pension contributions only

The Job Retention Bonus remains unchanged.

With less than a week to go until employers need to agree new short time working arrangements with employees in order to access the JSSO, it is to be hoped that the expected more detailed guidance on the terms of the scheme will be published shortly. When it is provided, we’ll update you accordingly.

Alternatively, speak to Willis Employment Services or your HR Consultant but definitely more to follow on this subject!!

To find out more about the Covid Job Scheme contact Willis Employment Services on 02890329042 or fill in the contact form below.

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