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The Job Support Scheme - Major Changes Announced

The Chancellor announced adjustments to the scheme to aid businesses and employees. Helen Crossland and Fiona Mendel summarise the key points.

As the furlough scheme draws to a close at the end of next week, the Chancellor has today announced adjustments to its replacement from 1 November 2020 - The Job Support Scheme.

The headline points are:

  • The Job Support Scheme (“JSS”) already provided that from 1 November, the Government will pay two-thirds of wages for businesses ordered to close during local or national lockdowns
  • The scheme will cover all businesses in tier 3 where employees cannot work for one week or more
  • Businesses will receive a maximum £2100 per month cash grant primarily to assist those in the hospitality, accommodation and leisure sector
  • For other businesses across all three tiers which are not forced to close, wages can be claimed under the JSS where employees can work at least 20% of their normal hours (previously set to be a third)
  • The employer must pay for any hours worked. In respect of the normal hours not worked by an employee, the government will pay at least 62% of these with the employer’s contribution dropping to 5% (previously set to be 33%)
  • The result is an employee will receive a minimum of 73% of wages under the JSS for working a minimum 20% of their normal hours, effectively one day a week for a full-time employee, with the employer paying less than previously outlined
  • The government has also extended business grants to organisations across all three tiers (which can be backdated to August 2020 where businesses have been subject to higher COVID-19 restrictions since the summer) and increased support to the self-employed
  • Employers will continue to be eligible for the £1000 Job Retention Bonus upon the JSS commencing on 1 November 2020

Should you have any queries on the above or require any employment related advice, please contact Helen Crossland at helen.crossland@seddons.co.uk or on 020 7725 8034 or Fiona Mendel at fiona.mendel@seddons.co.uk or on 020 7725 8033.

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