Residential property
15 Oct 2020 News

Job Support Scheme - Rural

Those in the rural property sector may find it useful to familiarise themselves with the new Job Support Scheme (JSS) which was announced by the Chancellor on 24th September 2020 as part of the government’s ‘Plan for Winter’. The scheme will run from 1st November 2020 for a period of six months. The JSS has been brought in to protect jobs in businesses in any sector who expect a downturn in business this winter.

The JSS will apply as follows:
An employee or agricultural worker must be working and be paid for at least one-third of their normal hours. Of the remaining 67% of hours not worked by the employee, one-third (22%) is paid by the employer and one-third (22%) is paid by the government. The government plans to review the minimum hours after the first three months of the JSS.

The level of government contribution is based on the employee’s usual salary (subject to a cap of £697.92 per month).

  • Employees should therefore receive at least 77% of their pay (unless their normal monthly pay exceeds the statutory cap).
  • Arrangements regarding reduced hours must be agreed in writing.
  • Employers will be reimbursed in arrears for the government contribution. Employers remain responsible for class 1 employers NICs and pension contributions.
  • Employees must have been on the employer’s PAYE payroll and RTI submissions must have been made on or before 23 September 2020. Each reduced hours arrangement must cover a minimum period of seven days.
  • Employees can be rotated on and off the JSS.
  • The JSS is not available for employees who have been made redundant or given notice of redundancy.
  • All small and medium sized businesses are eligible. Large businesses are only eligible if their turnover has fallen during the pandemic and the government expects they will not be making capital distributions (i.e. dividends) while using the JSS.
  • The JSS is available to employers throughout the UK with a UK bank account and UK PAYE scheme.
  • Employers do not have to have used the furlough scheme. Employers who retain furloughed staff on shorter hours will still be able to claim under both the JSS and the Job Retention Bonus (JRB).
  • Access to the JSS will not affect employers’ access to the JRB as long as all relevant eligibility requirements are met.

For further information on the JRB, read our recent article here.

We will keep you up to date when further guidance is published by the government . In the meantime our Employment Team would be very happy to discuss any queries you may have. 

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