The end of furlough but what is the Job Support Scheme?
The government furlough scheme ends on 31st October 2020. We’ve all pretty much understood it – eventually. Now the Job Support Scheme will take over and it’s not that clear, especially the numbers part!
The Job Support Scheme (JSS) starts on 1st November 2020 and runs for 6 months – until 30 April 2020. It will top up salaries where employees can not be taken back full time. Employees must be in a ‘viable job’ and work at least 1/3 of the normal hours.
Viable jobs are those for which there is a current need, and which are not being propped up by the furlough scheme, where someone can work one third of their normal hours. For example, a bar person in a partially opened restaurant would be viable, but a theatre usher where the theatre is currently closed would not.
The basics of the JSS are that the employee works at last 1/3 of their normal hours, the employer meets that cost and pays 1/3 of the remaining hours not worked. The government pays 1/3 of the unworked hours and the employee will forfeit the remaining 1/3. The employee will receive a minimum of 77% of their normal salary, a working example can be seen below.
The numbers part explained
Let’s take a hypothetical employee (Sam) with some nice round numbers to illustrate how the JSS would work:
Sam’s usual working hours per week would be 35 hours. A minimum of 1/3 needs to be worked to claim the JSS grant.
Sam will now work 20 hours per week, leaving 15 hours not worked to complete his contractual hours.
Sam is paid £10 per hour, with the total weekly pay usually being £350
Sam is paid by the employer for 20 hours worked (20 x £10) totalling £200
The 15 hours not worked is split 3 ways (5 hours x 3)
|5 hours paid by employer||£50|
|5 hours paid by the JSS grant||£50|
|5 hours forfeited by Sam||£50|
|Total received by Sam||£300|
Sam is receiving 85.7% of his normal pay (£300 ÷ £350) – so well over the minimum 77% that the government says has to be met to qualify for the JSS grant.
The employer meets the cost of hours actually worked plus 1/3 of the costs for the hours not worked.
Simple right ???
It’s not and takes a lot of getting your head round, especially when the numbers are not lovely and round like the above example.
Eligibility – the employer
Eligibility – the employee
For the full government factsheet click here
PSHR are on hand to help you steer through this transitional period, providing advice and support.