Job Support for Employers Who Are Facing a Decrease in Demand (JSS Open)

Is There Support Available for Employers Who Are Facing a Decrease in Demand?

If your business is open but you are facing a decrease in demand due to the coronavirus, you may be eligible for support 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 extra support through JSS Open will help you keep your workforce employed over the winter period on shorter hours, rather than make them redundant.

This is an improved version of the JSS originally announced, after the Government recognised that the evolving situation with the pandemic and the health restrictions are having a greater affect than first anticipated.

Under the new scheme, your employees will need to work a minimum of 20% of their usual hours which you will pay as normal.

In addition to this, your employee will receive two thirds (66.7%) of their normal pay for the hours not worked. 5% of this will be covered by you, up to £125 per month. The remaining 61.7% will be covered by the Government up to £1,541.75 per month.

This will mean, your employees will continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.

You will need to make a claim for the value of wages after the payment has been made, similar to the claims process for the Job Retention Scheme.

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

Please make sure you agree the reduced working hours with your employees and ensure that they are notified in writing. Each temporary working agreement must cover 7 consecutive days. This includes days where employees may not work i.e. Saturday and Sunday.

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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