Three weeks on…
And the JOB SUPPORT SCHEME changed slightly.
The scheme still operates from 1 November 2020 for 6 months (30 April 2021) but we now have two schemes – OPEN and CLOSED. The Closed JSS being for those businesses that are forced to close by law because of Tier 3 restrictions. I do hope this isn’t you, but I am not naïve enough to think it won’t happen to some of us.
Its purpose is to protect viable jobs, to support businesses where there is work to be done but where they need more time for demand to recover. You cannot claim for employees who are made redundant (or are working notice) during this time.
The big change is that the employee, being claimed for, needs to work at least 20% of their normal hours, which you pay at their normal (contracted) rate; and the unworked hours are split between you, the Government and the employee. You will pay 5% of these hours, the Government 61.67% (capped), and the employee will take a reduction in pay for the unworked hours. They will be assured a minimum of 2/3rds of their normal wages.
This is not restricted to those who were furloughed, but the employee must be on payroll (and RTI) as at 23 September 2020. The reference pay is the greater of what they received on 23.09.20 or 19.03.20 (before CRJS).
You MUST keep clear records of hours worked, the percentage that is of the normal working hours and agree the reduction in writing with the employees that are affected. This is to include reduced working hours, pattern of work, and the pay reduction they will be taking as a result of the scheme. An agreement is for a minimum of 1 week and each time it changes, a new agreement must be issued.
This is the link to the latest guidelines https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme
For calculations – a reminder, this isn’t my area of expertise, so consult your accountant or payroll provider.
Other things that may help:
CJRS – furlough as we know it ends on 31 October 2020.
30 November 2020 is the last day you can submit claims for furlough ending on or before 31 October 2020.
Use this time to check with your accountant and payroll provider that your have claimed correctly – and have not under or over claimed.
Job Retention Bonus – a one-off payment of £1000 for every employee who was previously furloughed (and claimed for) who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between 1 November 2020 and 31 January 2021.
Again, check with your accountant and payroll provider on how to make this claim.
Kickstart Scheme – looks to reduce long term unemployment within young people, aged 16 to 24 years old.
If you employ a young person, who is on Universal Credit and at risk of long-term unemployment, you will receive 100% of minimum wage for 25 hours (including NIC and pension contributions) for 6 months. You can pay more and offer more hours.
The aim is for the young person to gain skills and experience (and hopefully, you’ll keep them on).
I have a contact who can take you through the application process at no cost to you and source the additional support the young person might need – training, mentoring, coaching, internal and external (again, at not cost to you).