Key features of the Job Support Scheme

The JSS was originally announced by the Chancellor on 24 September 2020 as support for safeguarding viable jobs in businesses that are facing lower demand over the winter due to the impact of COVID-19. Subsequently, on 9 October 2020, an extension to the JSS was announced to cover businesses that are legally required to close their premises due to local or national COVID-19 restrictions. The two parts of the scheme offer different levels of support and have different eligibility criteria.

"Short-time working JSS" - This part of the scheme has the following key features:

1. Employees must work (and be paid by their employer for) a minimum of one third of their usual hours for the first three months of the scheme. After three months, the government will consider whether to increase this minimum short-time working threshold.
2. The government and the employer will each pay a third of the hours not worked. The employee will not be paid for the remaining one third of unworked hours.
3. The level of the government grant will be capped at £697.92 a month.
4. The grant will not cover Class 1 employer national insurance contributions (NICs) or pension contributions which will remain payable by the employer.
5. To be eligible, employees must have been on their employer's PAYE payroll on or before 23 September 2020. There is no requirement that they were previously furloughed under the CJRS.
6. Employees will be able to "cycle on and off the scheme" and will not have to work the same pattern each month, but each short-time working arrangement must cover at least seven days.
7. Employees cannot be made redundant or given notice of redundancy during the period for which their employer is claiming the grant for them
8. All small and medium-sized businesses regardless of sector, can participate in the JSS. Larger businesses will only be eligible if their turnover has fallen during the pandemic and the government expects that they will not be making capital distributions (such as dividends) while using the JSS.
9. The JSS is open to employers throughout the UK with a UK bank account and a UK PAYE scheme registered before 23 September 2020, regardless of whether they have used the CJRS.
10. Employers who retain previously furloughed staff on shorter hours will be able to claim under both the JSS and the Job Retention Bonus (JRB).
11. The government grant can only be used as reimbursement for wage costs actually incurred so employers cannot defer payment to employees until they have received payment from the government.

"Premises closure JSS" - This part of the scheme has the following key features:

1. Employers who are legally required to close their premises and cease operations for at least seven consecutive (or calendar) days are covered. This includes premises that are restricted to delivery or collection only services.
2. Large employers can access this part of the scheme without a financial assessment test, but there is an expectation that they will not make capital distributions.
3. The government will pay two thirds of eligible employees' normal pay (up to £2,100 per month).
4. Employers will not be required to contribute to employees' pay, but they will be required to cover employer Class 1 NICs and auto-enrolment pension contributions.
5. Employers can voluntarily "top up" the government's contribution.
6. Employees must have been on their employer's PAYE payroll on or before 23 September 2020. There is no requirement that they were previously furloughed under the CJRS.
7. An employee cannot be made redundant or put on notice of redundancy during the period in respect of which their employer is making a claim.
8. In order to claim, employers must have a UK bank account and a UK PAYE scheme registered on or before 23 September 2020.
9. Claims must not overlap and must be made monthly in arrears.