CJRS ending soon, what happens next?
The Government is withdrawing the Coronavirus Job Retention Scheme – CJRS as of 31st October, 2020 & it’s being replaced by the Job Support Scheme valid for 6 months.
How will it help employers & what does it entail?
The Government is offering support to retain jobs after CJRS ends 31st October – JSS currently on hold!
Rishi Sunak. Chancellor of the Exchequer unveiled the The Government’s Job Support Scheme (JSS) on 24 September 2020. It has been revised twice, namely 9 October 2020 and 22 October 2020. It was originally proposed to be effective as of 1 November 2020 for 6 months to due to the CJRS – Coronavirus Job Retention Scheme ceasing to exist at the end of the month, however, the Government has now announced Friday 30 October 2020 that the CJRS will be extended to 31 November 2020.
The rest of the information below relates to the original Job Support Scheme details which is on hold, however, The Job Retention Scheme bonus is still relevant.
How will it help employers and their workers? There’s two classifications for the scheme, ‘JSS Open’ & ‘JSS Closed.’ So, what does this mean & what’s the eligibility criteria?
JSS Open
This Government Grant is available to businesses who remain open with staff on reduced hours. To be eligible, an employee would need to be on the payroll submitted real-time to HMRC on the 23 September 2020, & it is practicable for Health & Safety, legal and business reasons for an employer to be ‘Open’, there is a prerequisite for a minimum of 20% of usual hours worked at full pay, paid by the employer.
In these circumstances 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 hours not worked, up to a maximum of £125 per month, & can pay more should they wish. The government will pay the remainder of 61.67%, of reference salary for hours not worked, up to a maximum cap of £1,541.75 per month. This will ensure employees receive at least 73% of their normal pay when earning £3,125 a month or less.
JSS Closed
This is where employers are legally required to close their business premises due to COVID-19 restrictions stipulated by one or more of the four governments of the UK. For these businesses, the Job Support Scheme, through JSS Closed, will help them when directly affected by these restrictions by supporting the wage costs of employees in eligible ‘closed premises’.
Each employee who cannot work due to these restrictions will receive two thirds of their normal pay, paid by their employer and funded by the government, to a maximum of £2,083.33 per month, although their employer can pay more.
Please note, that this Government Grant has already been amended twice, therefore it is subject to change. Experts, ELHR Ltd. are happy to assist should you require further clarity and assistance.
There is eligibility criteria to note & ELHR Ltd. would be happy to assist with this.
All employers can access the Job Retention Scheme irrespective of whether workers on the payroll have been furloughed previously. However, the real-time data payroll for each worker applied for on, or before 23 September 2020 is a prerequisite.
Can the JOB RETENTION BONUS still be accessed?
Rishi Sunak, the Chancellor confirmed employers using the JSS can still claim the Job Retention Bonus, providing employers with £1000 for each furloughed employee they continue to employ until the end of January 2021 who also meets other criteria. For more information on the Job Retention Bonus, please contact us on 01788 432077.
Mental Wellness and Physical Health
To be COVID-19 safe, you need to follow government guidelines to make working at home, or physically at work safe.
However, employers need to consider the management of employees emotional wellbeing in line with these changes. Fatigue from living within strict cleanliness routines and anxiety, some in relation to money worries and concerns regarding the new world coping with the unprecedented pandemic are very real threats to your company through the reduction of motivation and efficiency.
Using the approaches of ELHR to listen and understand the perspectives of your employees, will enable your team to improve productivity and allow your company to have the best possible chance of surviving financially.
What can you do to prepare?
Remember that it is important that you take the time to evaluate your duty of care as employers in relation to health & safety, mental, wellbeing and physical health of your staff working from home, or at work.
Risk assessments & taking guidance at difficult times is crucial. ELHR Ltd. are here to help and can assist in pointing you in the right direction.
How can we help?
From employment contracts that provide flexibility during uncertain times, advising on continuous employment law legislative changes, restrictive covenants protecting your business, to onboarding and performance management practices, our goal is to create an atmosphere that enables successful recruitment and retention of staff due to high morale and wellbeing, building on the lessons learned through 2020.
Our bespoke Human Resources Consultancy is not formulated as a package. We listen, understand and use our expertise to create a pathway for the companies we are proud to work with.
At ELHR, we work with you to create a culture that limits the risk of litigation through staff engagement surveys, change management during uncertain times, and succession planning. Looking to prepare for problems in order to avoid running into them.
Whether you need support for a set time frame or project, or a longer-term arrangement, we have the skills and capacity to make a real and measurable difference to prepare you for the future.
Contact us via our online form, or give us a call for your initial free consultation and we can discuss your specific issues you’re facing as an employee, or employer.
