How Will the Job Support Scheme Work for Closed Businesses? (JSS Closed)

How will the Job Support Scheme work for closed businesses?

This post was originally published in 19 October 2020 and was updated on 26 October 2020 for freshness, accuracy and comprehensiveness.

If you have legally had to close your premises due to coronavirus restrictions put in place by the Government, you can apply for support for employees’ wages through the Job Support Scheme (JSS).

There are two phases to the JSS:

  • JSS Open For businesses that are operating but facing decreased demand.
  • JSS Closed – For businesses that are legally required to close their premises as a direct result of coronavirus restrictions set out by the Government.

The support through JSS Closed will help you through the period where you are directly affected by the restrictions put in place. This includes premises restricted to delivery or collection only services and those restricted to provision of food and/or drink outdoors.

Business premises required to close by local public health authorities as a result of specific workplace outbreaks are not eligible for this scheme.

Each employee who cannot work will receive two thirds of their normal pay, up to a maximum of £2,083.33. This amount will be fully funded by the Government, however you will need to make a claim after paying the wages, similar to the Job Retention Scheme.

You will be expected to cover the cost of national insurance and pension contributions.

Any employees that are put on JSS Closed will need to cease work for a minimum of 7 consecutive days. This includes days where employees may not work i.e. Saturday and Sunday.

This support will help protect employee incomes, limit unemployment and retain employer-employee matches so that you can reopen as quickly as possible when restrictions are lifted.

Please inform your employees that they may also be entitled to additional financial support, including Universal Credit, during this time.

Once restrictions are lifted, if you do have enough work for your employee, you will still be eligible for JSS Open.

If you have any questions regarding the support available, please don’t hesitate to contact us.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation

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