Job Support Scheme Extended For Business Forced To Close

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Chancellor of the Exchequer Rishi Sunak has made updates to the newly announce Job Support Scheme. 

 

The new Job Support Scheme which will start from 1 November 2020 following the end of the Coronavirus Job Retention Scheme on 31 October 2020 has been further extended to support businesses forced to close due to coronavirus restrictions put in place.

The scheme which will run for six months until April 2021 will provide government support to help employers retain their workforce.  Where employers are required to close or forced to provide delivery and collection only, the government will pay two thirds of the wages of employees who cannot work when their employer is forced to close. 

Where employees receive two-thirds of their wages for time not worked, the grant per eligible employee available from the UK Government is two-thirds of their normal pay up to a limit of £2100 per month.

 

 

Who is eligible to use the scheme?

  • Employers
    • All employers with a UK bank account
    • All employers with a UK PAYE scheme
    • All UK businesses instructed to close 

    • Large employers using the Job Support Scheme will be expected not to be
      making capital distributions, such as dividend payments or share buybacks, whilst
      using the scheme.

    • Businesses required to close as a result of specific workplace outbreaks by local public health authorities are not eligible for this scheme

  • Employees
    • must be on payroll and submitted via RTI on or before 23 September
      2020.
    • Employee must not be working during the claim period
    • Employers must make an agreement with the employee
    • must cover a minimum period of seven days.

Employees do not need to have been previously furloughed in order to use the Job Support Scheme

What is not included?

Employers will not be able to claim for employer costs under this scheme.   This means the employer will need to cover the cost of any employer national insurance contributions or employer pension contributions. 

Businesses required to close as a result of specific workplace outbreaks by local
public health authorities are not eligible for this scheme

Employee Protections

Employees cannot be made redundant or put on notice of redundancy during the period the employer is claiming under the Job Support Scheme.

Employers must agree the new arrangements with their employees, make any changes to the employment contract by agreement, and notify the employee in writing.

This agreement must be made available to HMRC on request.

HMRC also intend to inform employees about details of claims linked to them.

How to make a claim?

Employers will be able to make claims online from December 2020. Claims will be paid on a monthly basis.

The grants will be paid in arrears so employers will need to make the payments to employees and submit via RTI before they can make a claim.

Job Retention Bonus

Employers will still be able to claim the Job Retention Bonus for eligible employees alongside the Job Support Scheme

Important to note

Please remember not all of the details are known at present.  We will need to wait for further guidance to be published.  

Keep an eye out for updates on social media and on this page. 

Links to Government information

Winter Economy Plan – https://www.gov.uk/government/publications/winter-economy-plan/

Job Support Scheme Fact Sheet – https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/925672/20201009_JSSC_Factsheet_FINAL_EG_1516_002_.pdf

Chancellor Outlines Winter Economy Plan – https://www.gov.uk/government/news/chancellor-outlines-winter-economy-plan

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