Alan Lewis explains implications of new Job Support Scheme for Express

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Thursday 1 Oct 10am Alan Lewis of Constantine Law gave a Zoom masterclass on the IoC channel - the subject was the new Job Support Scheme (JSS), which will replace furlough on 01 Nov 2020.

The rules are public, but the devil is in the detail...

Where does JSS stand for a second-job employee working in a sortation shift outside regular hours?

Watch the full keynote on YouTube here

Alan Lewis, ‘Job support scheme. JSS. This is not furlough and it starts November 1st.’

Alan put the first key question. "What are worked hours?"

The second key question, "How will this fit with a second job?"

Where an employee works in express on a sortation shift from a different role in another part of the day - will this scheme still apply where an employee takes a second job during the un-worked normal hours of the first job?

Example, Sue works ten to four, she is cut down to ten till one and she wants to work two until four in a sortation role. Will this disqualify the first employer from claiming JSS grant payment?

Alan did the dozen with a twelve-question special for the express courier sector, looking at issues ranging from sick pay to NIS payments between employer and govt.

The dozen questions are on a link here for fellows to review.

Fellows key question,

where do we stand with an employee who does not want to be on the scheme?

 

Alan's answer is the only viable alternative for that employee is redundancy.

 

Alan Lewis: Unravelling the JSS detail for Express logistics

Alan Lewis goes further to provide IOC fellows with a summary of the key points of the new Job Support Scheme, JSS

 

With effect from 1 November 2020, the new Job Support Scheme (“JSS”) will come into force. We await published guidance from the government for the full story. For now, here are the key points to be aware of:

· The JSS will operate for 6 months from 1 November 2020.

· The idea behind the JSS is to help employers keep people in employment by supporting the wages of employees who are in viable jobs, but on shorter working hours.

· Employees must work at least 1/3 of their normal working hours and the employer must pay them for those hours

· For the hours not worked, the government and the employer will each pay one third of an employee’s salary. The employee will not be paid for the remaining third of hours not worked.

· The grant will be calculated based on an employee’s usual salary, with a maximum grant per employee of £697.92 per month.

· All small and medium enterprises are eligible to participate in the JSS.

· Larger businesses, who can show that their turnover has fallen as a result of coronavirus, are also eligible to participate in the JSS, but must comply with conditions, including restrictions on making capital distributions to their shareholders.

· An employer does not have to have claimed under the Coronavirus Job Retention Scheme 9CJRS) (the scheme in place until 1 November) in order to be able to participate in the JSS.

· Employers cannot issue redundancy notices to any employees they are claiming for under the JSS.

What does this mean for the express courier sector?

· Couriers will face higher costs under the JSS than under the CJRS.

· An example: a manager paid £33,000 per year works 2 out of his usual 5 days. That is 40% of normal working hours and so is eligible for the JSS. The employer will pay £1,100 per month (40% of the normal monthly salary of £2,750). Of what would have been the £1,650 per month remaining normal salary for the hours not worked, the employer pays one-third, namely £550 and claims another one-third (£550) under the JSS. In this case the employee’s gross salary per month is £2,200 which works out at 80% of his normal salary for working 40% of his normal hours. It has not been made clear yet, but we believe the employer will have to pay employer’s national insurance contributions calculated on the aggregate gross amount paid by employer and the government, in this case on £2,200.

· Couriers should carry out detailed assessments of their requirements for the 6 months from 1 November 2020 and consider whether relying on employees who are, essentially, working part-time will meet their business needs.

· Couriers may have to consider implementing redundancies. It is important to be aware of the collective consultation periods if couriers are potentially to make redundant 20 or more employees (30 day consultation period, unless 100 or more employee are to be made redundant, in which case the period is 45 days).

 

 

IoC