Kate Brooks
Partner, Solicitor & Head of Employment/HR Services
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Date Published:11 Oct 2020 Last Updated:17 Jan 2022

Job Support Scheme to cover closed businesses too…

Employment Law Advice

The Job Support Scheme was announced on 24th September and will replace the coronavirus job retention scheme (furlough or flexi furlough scheme).

JSS opens from 1 November 2020 until the end of April 2021.

When originally announced, the Chancellor confirmed that the government will cover one third of every hour not worked (up to a cap of £697.92) per month per employee. The employer will have to pay on third of the usual hourly rate and also the employer will pay for the time worked. Originally it was confirmed that initially the employee would have to work at least 33% of their normal working time. Click here for our previous blog on the Job Support Scheme.

On the 9th October 2020, the Chancellor announced that the Job Support Scheme will be expanded to provide support to
businesses whose premises are legally required to close as a direct result of Coronavirus restrictions set by government. This means there will be support for these businesses that have to close, and the employees are not required to work. This will include premises restricted to delivery or collection only services. For more information on the Government guidance, click here.

In the situation that the business is forced to close, the employer will be able to claim a grant of up to two thirds of an employee’s normal pay (capped at £2100 per employee per month) for employees who cannot work for a minimum of 7 consecutive calendar days due to forced closures.

Once a business is able to re-open it has the option to use the Job Support Scheme (as announced on 24th September). In this situation, the employee must work at least 33% of usual hours.

To use the Job Support Scheme, whether for a closed business or for a business requiring at least 33% of hours, the employer must: Seek the agreement of the employee and also notify the employee in writing.

If you need any guidance about the JSS scheme or how to make changes to an employees contract, please get in touch with Kate Brooks at kate.brooks@ellisjones.co.uk or 01202 057754.