The Government’s Job Retention Scheme, also known as furlough, ends on 31st October, but this doesn’t mean the end of support for employers and employees. The new Job Support Scheme (JSS) will begin on 1st November 2020, and is designed to keep staff on your payroll, even if their hours have been cut.
What is the Job Support Scheme (JSS)?
The Job Support Scheme has been designed to reduce the likelihood of redundancies and layoffs. From 1st November, and running for six months, the Government will contribute towards the wages of staff working fewer than normal hours. Employers continue to pay staff for the hours they work, and then the Government and employers each contribute half of the rest of the employee’s usual wages up to a cap of £697.92 per month.
So, as an example, an employee who would normally work 30 hours per week, but has had their hours reduced to 20 hours per week, would be paid by their employer for their hours worked, and then the remaining 10 hours would be paid by the employer and the Government, equating to 5 hours each.
Businesses are able to claim money from the scheme from December 2020, with grants paid monthly.
For businesses that have been forced to temporarily close as a result of Covid-19, the Job Support Scheme (Closed) will provide two thirds of an employee’s pay. This needs to initially be paid by the employer and can be claimed from 8th December 2020.
What other help is there?
For businesses who furloughed their staff but have brought them back to the workplace, the Job Retention Bonus will pay £1000 for every eligible employee who is still continuously employed on 31st January 2021. In order to qualify, staff members must earn a minimum of £1560 between 6th November 2020 and 5th February 2021. The bonus can be claimed from 15th February 2021 – 31st March 2021.
The introduction of the Job Retention Bonus may go some way to covering the extra costs of topping up any wages for staff on the Job Support Scheme.
Other ways to reduce staff costs without making redundancies
With the introduction of JSS, it’s a good idea to sit down with your team and ask them if they have any ideas for making some collective cost cutting changes. Some staff may welcome going part-time or starting a job share, if they know that they won’t suffer a negative financial impact. They may have other cost cutting suggestions that you may not have considered as well.
Having a conversation with staff also helps to open communication routes, meaning they will be happier to approach you about other issues and concerns, and will help to reduce stress and uncertainty.
As always, the team at Dakota Blue are always on hand to advise employers on any HR related concerns or issues. Contact us here.