Legal analysis: The Job Support Scheme

Seamus Rotherick
By Seamus Rotherick October 2, 2020 12:05

The National Golf Clubs’ Advisory Association (NGCAA) looks at the government’s Winter Economy Plan and what it might mean for golf clubs.

On September 24, 2020, the chancellor announced the new Job Support Scheme (JSS), as part of the government’s Winter Economy Plan. The JSS will start on November 1, 2020, the day after the Coronavirus Job Retention Scheme (CJRS) / furlough scheme closes.

There is a government treasury policy paper on the Winter Economy Plan, as well as two related fact sheets for the JSS and the Self-Employment Income Support Scheme. This article focuses only on the JSS.

Chancellor Rishi Sunak

Further detailed guidance is due to be published from the government in relation to the JSS, but the information we can publish that is known at the present time is as follows:

  1. It will run for a period of six months from November 1, 2020.
  2. All employers applying under the JSS must have a UK bank account and a UK PAYE scheme.
  3. Employees must be on the employer’s PAYE payroll on or before September 23, 2020.
  4. Neither the employer nor the employee needs to have previously used the CJRS.
  5. All small and medium-sized enterprises (SMEs) will be eligible – it is anticipated that most golf clubs should fit within this definition, although no precise definition is given as yet.
  6. Employers will be able to make a claim under the JSS online through the government website from December 2020. Payments will be made monthly.
  7. HMRC may withhold payments or may require repayment if a claim is found to be fraudulent or based on incorrect information.
  8. Employers using the JSS will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
  9. Employees will be able to dip in and out of the scheme and do not have to be working the same pattern each month, but each short time working arrangement must cover a minimum period of seven days.
  10. In order for an employer to claim in respect of an employee, the employee will need to be working for a minimum of 33 percent of their usual hours. The scheme is aimed at reduced hours jobs, not fully furloughed posts.
  11. Before a claim may be made, employers must have agreed the new short time working arrangements with the relevant employee(s), made any changes to the employment contract by agreement and notified the employee in writing. This agreement may have to be made available to HMRC if requested.
  12. ‘Usual wages’ calculations will follow a similar method as those for the CJRS. Further guidance will follow from the government in respect of the calculation. However, we do know that employees who have previously been furloughed will have their usual (‘pre-furlough’) pay and hours of work used to calculate their wages, not the amount they were paid whilst on furlough.
  13. For every hour not worked the employer and the government will each pay one third of the employee’s usual pay, with the government contribution capped at £692.92 per month.
  14. The employer will be reimbursed in arrears for the government contribution. Grants can only be used as reimbursement for wage costs actually incurred, meaning that claims can only be submitted in respect of a pay period after payment to the employee has been made and such payment has been reported to HMRC via the RTI return.
  15. The JSS grant will not cover Class 1 Employer NICs or pension contributions, although these contributions will remain payable by the employer.
  16. Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming this grant for that employee.
  17. Employees using this scheme will receive at least 77 percent of their pay where the government contribution has not been capped.

It is important to note that the employee will still be paid by their employer for all hours actually worked.

Where an employee is working one third of their normal hours, the employer would pay for that one third of worked hours. Of the remaining two thirds of their normal hours (not being worked), one third of the overall normal full wage would be paid by the government (subject to the £679.92 per month cap), one third of the overall normal full wage will be paid by the employer and one third would go unpaid. In percentage terms this translates to 55.5 percent of the employee’s normal wage being payable by the employer and 22.2 percent being payable by the government.

In cases where the employee works more than one third of their normal hours, the overall percentage of wage that the employer will have to pay will be more than 55.5 percent, whilst the government payment will be less than 22.2 percent. That is to say, 22.2 percent is the maximum the government will ever pay in respect of an employee.

We will update members with further information when it becomes available from the government. For further advice on this or any other legal matter affecting your golf club, please contact the NGCAA on 01886812943 or office@ngcaa.co.uk

 

Seamus Rotherick
By Seamus Rotherick October 2, 2020 12:05
Write a comment

3 Comments

  1. Savannah October 16, 07:20

    This information is very helpful, thanks. Stay safe everyone

    Reply to this comment
  2. max October 5, 15:07

    what if i cant survive another six months on even less money ,and would rather take my chances finding full time work. if i refuse what options would my employer have

    Reply to this comment
  3. Kevin Johnson October 3, 05:19

    Nice info .. the next few months is going to be very challenging for the industry let’s hope we can keep the new members

    Reply to this comment
View comments

Write a comment

Your e-mail address will not be published.
Required fields are marked*

Join Our Mailing List


Read the latest issues

Advertise With Us

To advertise in the magazine or online, contact:

Email marketing@thegolfbusiness.co.uk
Tel 020 7803 2453

Twitter Timeline