Job Support Scheme Agreement Template
Download Your Free Job Support Scheme Agreement Template
What is the Job Support Scheme?
The new Coronavirus Job Support Scheme (the ‘JSS’) will replace the Coronavirus Job
Retention Scheme (the ‘CJRS’) when it comes to an end at the end of October 2020.
The JSS is being introduced to protect jobs in businesses in the UK which can operate
safely but are facing lower demand over the winter months due to COVID-19 and to enable
these businesses to retain employees on shorter hours, preserving valuable employment
relationships, protecting incomes and avoiding potential redundancies.
What are the employer contributions under the Job Support Scheme?
Under the revised scheme the minimum hours of work to be offered is reduced to 20% and
whilst the employee would still receive two thirds of their lost pay (subject to a total cap of
£1,666.25 per month) the employer’s contribution is reduced to 5% of the lost pay and the
Government will contribute 61.67%.
This greatly reduces the employer contribution and noticeably makes the scheme more affordable than the current furlough scheme where the employer must pay 20% of the lost wages.
When will the Job Support Scheme come into effect?
The CRJS ends on October 31st, and the JSS will start on 1st November.
How do employers implement the JSS?
For ‘open’ businesses (i.e. those not required to close by law in Tier 3 areas or under devolved Government lockdowns):
- Employers need the written agreement of employees, normally this is done by agreeing verbally and then confirmed in writing by a signed letter.
- Employers need to be able to offer at least 20% of normal hours of work for which they will pay employee as normal
- For the normal hours of work which the employer does not offer work they will pay the employee 2/3 of their normal pay through payroll
- Employer’s will then claim a grant of 61.7% of the lost pay from the Government. This will work similar to the furlough scheme where they will make a claim online through an HMRC portal and the cash will be paid in to a bank account nominated by the client.
- This means that the Employer’s contribution of the lost pay is just 5%
- Employers can only claim for money they have paid to the employee.
For ‘Closed’ businesses such as bars in Tier 3 areas they will pay 2/3 of the employees’ wages and claim the full amount back from the Government.
To use either scheme employers must have an online PAYE account set up and to be eligible to be paid under the schemes employees must have been employed by 23rd September 2020 and an RTI must have been submitted for them between April 6th 2020 and 23rd September 2020.
Next steps: Download our free Job Support Scheme Agreement Template
Employees will need to obtain the agreement of employees to work and be paid under the
scheme and will need written notification to the employee on file. We have produced a
simple Job Support Scheme agreement for this purpose which you can download for free
and personalise to your business. To download your copy simply enter your details in the