The JSS Open scheme gives the employers the option to keep employees in a job without having to make them redundant due to the decrease in demand because of the coronavirus. How employees will be paid is best explained from this extract from the gov.uk website:
‘The employee will need to work a minimum of 20% of their usual hours and the employer will continue to pay them as normal for the hours worked. Alongside this, the employee will receive 66.67% of their normal pay for the hours not worked – this will be made up of contributions from the employer and from the government. The employer will pay 5% of reference salary for the hours not worked, up to a maximum of £125 per month, with the discretion to pay more than this if they wish. The government will pay the remainder of 61.67%, of reference salary for the hours not worked, up to a maximum of £1,541.75 per month. This will ensure employees continue to receive at least 73% of their normal wages, where they earn £3,125 a month or less.’
Under the JSS Closed, all employees that cannot work due to the a business being forced to close will receive two thirds of their normal pay up to a maximum of £2,083.33 a month which will be paid by the employer and fully funded by the government. This type of scheme was set up to protect employees income, limit unemployment, and keep employees and employers together so that when restrictions ease, these type of businesses can open as quickly as possible.
The Job Support Scheme will open from the 1st November 2020 and will run for 6 months until 30th April 2021, with the scheme being reviewed in January depending on restrictions. It is also worth noting that the JSS Open and the JSS Closed grants cannot be claimed for the same employee at the same time. Employers can only claim for employees that were in their employment on the 23rd September 2020 which also means that employees do not necessarily have to have been furloughed under the Coronavirus Job Retention Scheme to be eligible for the Job Support Scheme.