We sent you briefings on 1st and 9th October 2020 giving what details we have relating to the new Job Support Scheme which replaces the furlough scheme from 1st November 2020; we are still awaiting publication of the full guidance from HMRC.
To recap, the JSS has been put in place to support viable jobs (the Chancellor’s word) and, it is hoped, will reduce the business necessity to made redundancies.
Employees must work at least one third of their normal, contracted hours but could work more if there is work available. Of the remaining hours which aren’t worked, the employer will pay one third, the employee will take a reduction of one third and the Government will pay the remaining one third; employers will continue to pay NICs and Pension contributions. In the case of a local or national lockdown and if you were told to close your business, the Government would pay two thirds of the contracted hours and the employee would take a one third reduction in pay.
There is a very helpful Government fact sheet which shows some examples accessible by subscribing to our Advice Line service.
In order to participate in the scheme, you will need to enter into a new Agreement with your employees and we have drafted an Employee Job Support Scheme Agreement template for you which is available by subscribing to our Advice Line service. We have written the Agreement so that it covers both a business closure due to local/national lockdown and a reduction in hours whilst operating.
We are recommending that you enter into such an Agreement with all of your employees in advance of it becoming necessary; if you do not need to reduce employee working hours, then you wouldn’t need to exercise the rights under the JSS or the Agreement but it’s better to be prepared.
If the business is not subject to closure under a local or national lockdown, you will need to ensure that employees work at least one third of their normal contracted hours in a pay period be that a week, fortnight, 4-weeks or monthly and keep track of those hours to support your claim to HMRC.
We have developed a tracking spreadsheet for you to assist with this and it is accessible by subscribing to our Advice Line service.
Our Support and Advice
If you would like us to produce the Agreements for your employees, we are happy to do so for a nominal administration fee.
Please do talk to us if we can help in any way, we are here to support you.
Guidance and support
We are constantly updating and adding to our Coronavirus Dropbox. Support for getting your business going is available by subscribing to our Advice Line service.
As the Job Support Scheme Agreement is version 1 and we are awaiting full guidance from HMRC it is likely to change so please access via the Dropbox and make sure that you are always using the most up to date version.
We have just updated the return to work letters for Employees(EEs) and Workers returning to the workplace once the CJRS (Furlough) scheme ends on 31st October 2020.
Please note, this briefing is accurate at the time of writing and intended as guidance, it is subject to change as the COVID-19 and Government advice changes; it is not intended to replace advice so please do call us if you have any queries.
As ever our thanks to barrister Daniel Barnett of Outer Temple Chambers for helping to keep us abreast of all matters employment law related.
