The existing furlough scheme (CJRS) will end in a matter of days, and will be replaced on 1st November by the Job Support Scheme (JSS) which will run until 30 April 2021.
This will work differently depending on whether a business is open or closed. A business that is open but experiencing reduced demand due to Covid-19 restrictions can use JSS Open. If a business has to legally close due to Covid-19 restrictions, they can access JSS Closed. Just to confuse things further, an employer can claim the JSS Open and JSS Closed Grant at the same time for different employees!
Under JSS Open, the employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked. Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked. This will be made up of contributions from the employer and from the government. The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish. The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.
Under JSS Closed, which operates more like a local furlough scheme, employers required to close their premises by law can access increased help for the period of closure. Employees will receive two thirds of their normal pay, paid by their employer and fully funded by the government, to a maximum of £2,083.33 per month. The employer can pay more than this if they wish.
We understand that further guidance regarding calculating and making JSS claims will be published by the end of this month.
If you would like our help with your payroll, or using the JSS, please contact a member of our Payroll team on 01788 539000.