Job Support Scheme Archives | Employment Law Services (ELS) LTD

Ending Furlough: An Urgent Call to Action for Employers

Posted on 23 October 20208 June 2023 by @deliver_els

With the Coronavirus Job Retention scheme due to end on 31 October 2020, Employers have one week to decide what to do with staff who are currently furloughed and/or flexibly furloughed.

Ending Furlough: An Urgent Call to Action for Employers

Following yesterday’s announcement by the Chancellor, HMRC has published a policy paper containing more details on the Job Support Scheme which now defines the scheme is two ways:

JSS Open; and

JSS Closed

Under JSS Open, an employee will need to work at least 20% (no longer 33%) of their normal hours. They will receive normal pay for the hours they work, and two-thirds of pay (subject to a cap which bites against those earning more than £3,125 a month) for the hours they do not work. For that two-thirds top-up, the government will pay 61.67% and the employer will pay 5%, plus NI and pension contributions on the full amount. That is a significant change from the previous 50:50 split towards the two-thirds top-up, shifting the financial cost overwhelmingly to the public purse. There must be a written agreement between employer and employee, agreeing to the changes.

Under JSS Closed, the position remains that the employee will receive two-thirds of their normal wages, funded by the government (again, with a cap biting against those who earn more than £3,125pm). The employer will have to pay the NI and pension contributions on that amount. Again, there must be a written agreement between employer and employee, agreeing to the changes.

The policy paper provides some detail about how the scheme will operate, eligibility criteria and how to calculate pay, but full details are still to be confirmed and Treasury Direction is expected to be issued soon.

Decision Time for Employers

In the meantime, Employers will need to decide what to do with who are currently furloughed and/or flexibly furloughed and our multi-award-winning team of employment law specialists are ready to help you!

We can give you advice and support on:

Ending furlough and/or flexible furlough

Employment contract changes necessary to utilise the Job Support Scheme

Drafting and providing written agreements between employer and employee, agreeing to the changes.

The correct redundancy processes to ensure fairness and legal compliance

Utilising settlement agreements as an alternative to a full blown redundancy process.

Book your FREE Consultation Now or call us on 0800 612 4772 to speak to a specialist today.

Increased Government Contributions Under Job Support Scheme Announced

Posted on 23 October 20209 June 2023 by @deliver_els

On Thursday 22 October 2020 the Chancellor announced a package of further economic measures to support businesses affected by the ongoing COVID-19 pandemic.

Increased Government Contributions Under Job Support Scheme Announced

The package announced by the Chancellor in a statement to the House of Commons includes significant changes to the short-time working Job Support Scheme (JSS), expanded grants for businesses in high-alert areas, and increased grants for the self-employed.

The announcement of increased Government contributions under the JSS comes just two weeks after an extension to the Scheme was announced and will be warmly welcomed by many employers that were facing the prospect of having to make redundancies at the end of October.

Under the JSS, an employee will now only need to work and be paid for at least 20% of their normal hours, not 33% as originally announced. For the employee’s remaining (unworked) hours, the government will provide up to 61.67% of the employee’s normal wages, up to £1,541.75 a month (up from £697.92 as originally announced). The employer will contribute the other 5% of the unworked hours (not 33% as originally announced). These changes are being made with a view to enabling businesses to retain staff and avoid redundancies. The JSS for businesses legally required to close their premises remains unchanged.

There has been no change to the eligibility requirement for the JSS, such that all small and medium sized businesses will be eligible. Larger businesses are only eligible if their turnover has fallen during the pandemic. Eligible employers will be able to claim under both the JSS and the Job Retention Bonus (for employees who have previously been furloughed).

The government will also increase the amounts available under the next tranche of the Self Employment Income Support Scheme (SEISS). For those currently eligible for SEISS and who continue to actively trade but face reduced demand, the initial taxable grant will now be worth 40% of average monthly trading profits, up to a total of £3,750, covering the period from November 2020 to January 2021. The level of the second grant covering February to April 2021 will be set at a later date.

In England, business grants of up to £2,100 a month will be made available for businesses in the hospitality, accommodation and leisure sectors which have not been required to close but are impacted by restrictions in high-alert areas. These grants will be available retrospectively for areas which have already been subject to restrictions. The grants will be administered and distributed by local authorities, who will determine which businesses are eligible for funding.

In Scotland, the First Minister announced that the current temporary restriction will remain in place until 2 November 2020, by which time they will have published details of their 5 tier COVID restrictions alert system. In the meantime, funding for business grants over this period will be increased proportionately. The COVID-19 Restrictions Fund will now provide one-off grants of up to £4,310 to businesses required to close by the regulations in Scotland and for businesses that remain open but are directly impacted by the restrictions, the maximum hardship fund grant will increase to £2,155. In addition, grants of £1,650 will help those businesses that are required to close to meet the 20% employer’s contribution they are required to pay under the UK Government’s CJRS.

However, these one-off grants in Scotland are for the period until 2 November 2020 and the Scottish administration has yet to clarify and/or confirm whether it intends to mirror the monthly grant scheme introduced in England.

We will be updating our FREE COVID-19 Guidance for Employers and comprehensive FAQs document in the coming days to help employers understand the key elements of the new JSS to assist them in planning what to do when the furlough scheme comes to an end on 31 October 2020.

In the meantime, if you require any advice or support with introducing short time working via the Job Support Scheme, redundancies or any other employment matter, please contact our team of employment law specialists to get clear and purposeful advice.

Book your FREE Consultation Now or call us on 0800 612 4772 to speak to a specialist today.

Job Support Scheme for Employers Extended

Posted on 11 October 20209 June 2023 by @deliver_els

On Friday 9 October 2020 the Scottish administration ordered the closure of pubs and restaurants across central Scotland and with the UK Government considering similar ‘local’ lockdown restrictions for many parts of England, the Chancellor announced the extension of the new Job Support Scheme (JSS).

Job Support Scheme for Employers Extended

The extension of the JSS is intended to provide temporary support to businesses whose premises have been legally required to close as a direct result of coronavirus restrictions and will see affected businesses receiving grants towards the wages of employees who have been instructed to and cease work. The UK government will now pay two thirds of employees’ usual wages, up to a maximum of £2,100 per month and employers will not be required to contribute towards wages, but will need to cover employer National Insurance and pension contributions.

The announcement of an extension to the JSS comes hot on the heels of the new Scheme being introduced by the Chancellor just two weeks earlier and will undoubtedly be welcomed by many employers, but the end of the CJRS (furlough scheme) will still leave many employers unsure about their future and that of their employees.

We have updated our FREE COVID-19 Guidance for Employers and collated a comprehensive FAQs document to help employers understand the key elements of the new JSS to assist them in planning what to do when the furlough scheme comes to an end on 31 October 2020.

Check out our summary of the new JSS here and to get answers to many of the frequently asked questions about the Job Support Scheme (JSS).

Support for Employers

The COVID-19 lockdown restrictions and various government schemes being introduced by the UK government continue to present numerous and complex challenges for Employers.

If you are an Employer and require advice and support on any employment matters, COVID related or otherwise, call us now on 0800 612 4772 or Contact us via our website and we will set assist you to navigate through the employment law minefield created by the COVID-19 crisis and comply with your legal obligations.

More Details of the New Job Support Scheme Revealed

Posted on 24 September 20209 June 2023 by @deliver_els

The UK Government appear to be somewhat quicker off the mark with publishing details about the new Jobs Support Scheme announced earlier today by the Chancellor than they were when the CJRS was first introduced. Two Government publications in particular provide further details; the Job Support Scheme Factsheet and the Winter Economy Plan.

We’ve taken a look at the initial publications and have put together a summary of the key points.

More Details of the New Job Support Scheme Revealed

Compliance with Employment Law

One key observation from this initial guidance is that Employers must agree the new short time working arrangements with their staff, 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.

It is essential, therefore, that where Employers are looking to utilise the new Job Support Scheme and introduce short time working, the comply fully with the relevant employment legislation when introducing it with their staff so as to avoid the risk of potential claims at the Employment Tribunal AND falling foul of HMRC and having claims withheld or required to be repaid.

Eligibility for the Job Support Scheme

All employers with a UK bank account and UK PAYE schemes can claim the grant, but large businesses will have to meet a financial assessment test to determine whether their turnover is lower now than it was before experiencing difficulties from COVID-19. SMEs are exempt from the financial assessment.

All employees must have been on the employer’s Real Time Information submission on or before 23 September 2020.

How to Claim the Job Support Scheme

The scheme will be open from 1 November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid on a monthly basis.

Grants will be payable in arrears meaning that a claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via an RTI return.

What Can Be Claimed Under the Job Support Scheme

For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, and the government contribution will be capped at £697.92 per month.

Employees using the scheme will receive at least 77% of their pay, where the government contribution has not been capped. The employer will be reimbursed in arrears for the government contribution.

The minimum 33% threshold hours for which an employee must work may be increased in months 4-6 of the scheme.

Working patterns can vary, but each short time working arrangement must cover a minimum period of seven days.

The government’s grant will not cover Class 1 employer NIC or pension contributions, although they remain payable by the employer.

Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee.

HMRC Checks

HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. Grants can only be used as reimbursement for wage costs actually incurred.

More details of the new Jobs Support Scheme are emerging, as the Government publishes different papers, and we shall continue to review the details as they emerge and provide updates accordingly.

Support for Employers

We can assist Employers with making the necessary changes to the employment contract and ensuring these changes are correctly implemented. Call us now on 0800 612 4772 or Contact us via our website and we will set out clear guidance to assist you to comply with your legal obligations.

COVID-19: New Financial Support Announced Today

Posted on 24 September 20207 June 2023 by @deliver_els

The Chancellor has today announced a further package of financial support measures intended to protect jobs and support businesses.

COVID-19: New Financial Support Announced Today

Outlined below is a summary of the key new measures, but this is not the formal Government statement. Once the details have been revealed we shall provide further information.

New Job Support Scheme Announced by the Chancellor

Below is a summary of the key points announced today by the Chancellor.

The CJRS (Furlough Scheme) will end on 31 October 2020, as planned

A new Jobs Support Scheme will come into effect from 1 November 2020, aimed at retaining “viable” jobs and intended to support wages for people in work and to provide employers with the option to introduce short time working, opposed to making redundancies.

Employees must work at least one-third of their normal hours, which must be paid as normal by their employer, with a further top up of their salary being subsidised by the government. The Chancellor in his announcement stated this top up would equate to two-thirds, but HM Treasury have just tweeted the top up would only be one-third, bringing total salary up to just 77%. We await the official guidance with anticipation!

All SMEs are eligible and so too are larger businesses whose turnover has fallen.

The new Scheme will be open to all business throughout the UK, regardless of whether they have previously used the CJRS (Furlough Scheme and will run form 6 months from November.

Employers participating in the new Jobs Support Scheme will still be able to claim the Jobs Retention Bonus.

The self-employed grant is being extended on similar terms and conditions to the new Jobs Support Scheme.

Cashflow Assistance Also Announced by the Chancellor

In addition to the new Jobs Support Scheme, the Chancellor also announced four further steps intended to provide cashflow assistance for businesses. The key points are:

Business Bounce Back Loans can be extended from uptown 6 to 10 years to reduce the monthly repayment amounts that would have otherwise been due and businesses can seek to defer the start of repayments for up to 6 months beyond the current arrangements.

The government guarantee for Business Interruption Loans will be extended for up to 10 years and the deadline for applying for all loan schemes is being extended to the end of this year.

Businesses that previously utilised the VAT deferral scheme can now spread the repayment of the deferred VAT bills over 11 months.

VAT shall remain at 5% for hospitality and tourism business until the end of March 2021.

At the time of writing this the Chancellor is still answering questions from MPs in the House of Commons, so the full details of the various measures he has announced are not yet available.

Once the formal Press Release, guidance and any draft legislation is released, we shall review it thoroughly and provide further updates / clarity.

Support for Employers

The COVID-19 lockdown restrictions and various government schemes being introduced by the UK government continue to present numerous and complex challenges for Employers.

If you are an Employer and require advice and support on any employment matters, COVID related or otherwise, call us now on 0800 612 4772 or Contact us via our website and we will set out clear guidance to assist you to comply with your legal obligations.