1,500+ Business Documents

< Go back

Document updated/added on 07.11.2020

Topic: Changing terms & conditions and TUPE

Closed job support scheme agreement
File size:
89.50kB

# Pages:
4

Closed job support scheme agreement

Closed job support scheme agreement

Although the launch of the Job Support Scheme has been postponed because of national developments related to the coronavirus pandemic, assuming that it does eventually take effect in May 2021, it will provide temporary support to businesses whose premises are legally required to close as a direct result of coronavirus restrictions set by the government. Our letter guides you through seeking employee consent.

Eligibility

The Job Support Scheme for closed business premises (JSS Closed) is expected to come into effect once the Coronavirus Job Retention Scheme ends (which is currently due to be 30 April 2021) and it will be open to employers with a UK bank account and PAYE payroll scheme who are legally required to close their business premises as a result of tier-related coronavirus restrictions set by one of the UK’s four governments. This includes those restricted to delivery or collection only services from their premises, and those restricted to the provision of food and/or drink outdoors. The JSS Closed will pay a grant to you calculated on the number of eligible employees who’ve been instructed to and cease work at the premises for a minimum of seven consecutive calendar days, and who don’t do any other work for you during the premises closure. For an employee to be eligible, they must have been in your employment on 23 September 2020, a Real Time Information (RTI) submission notifying payment in respect of them must have been made to HMRC at some point between 6 April 2019 and 23 September 2020 and the closed premises must be their primary workplace.

Government grant

The government will pay a grant of two thirds of the employee’s usual pay for their usual hours that aren’t worked as a result of the premises closure, subject to a cap of £2,083.33 per month. The employee then agrees to accept a wage reduction in relation to the other one third of their usual pay (and any pay above the cap). In practice, you must pay the employee the monies and then claim them back as a monthly grant in arrears. The grant doesn’t cover employers’ NI or auto-enrolment pension contributions - you must cover those based on the amount paid to the employee, but you don’t have to make any further contribution to wage costs. An employee cant be made redundant, or be serving a contractual or statutory notice period, during the period within which youre claiming the grant for them. When your business premises are permitted to reopen, you can still claim under the JSS Open if needed (see our Open Job Support Scheme Agreement).

Consent

There’s no right for an employee to be included in the JSS Closed; you initiate the process. However, placing an employee on job support leave at reduced pay requires either a term in their employment contract permitting this or their express consent. It’s also a requirement of the JSS Closed that you must make any changes to the employee’s employment contract by agreement confirmed in writing. So, our Closed Job Support Scheme Agreement letter is intended to obtain their written consent, both to the leave arrangement and the reduced wages.

Letter contents

Our letter sets out in what circumstances the leave arrangement under the JSS Closed would end and what the employee would be paid during it. It then asks the employee to sign to confirm they agree to the arrangement. While an employee is on job support leave, their employment contract continues, and they retain their statutory and contractual employment rights.

© Indicator - FL Memo Ltd • Telephone: (01233) 653500 • Fax: (01233) 647100 • customer.services@indicator-flm.co.uk • www.indicator-flm.co.uk
Calgarth House, 39-41 Bank Street, Ashford, Kent TN23 1DQ • VAT GB 726 598 394 • Registered in England • Company Registration No. 3599719