Individuals you can claim the Job Support Scheme for who are other types of employees
Published 30 October 2020
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1. Office holders
Office holders can agree and be put on a JSS temporary working agreement and receive support through JSS Open or JSS Closed. The temporary working agreement, and any ongoing payment during the agreement, will need to be agreed between the office holder and the party who operates PAYE on the income the office holder receives for holding their office. Where the office holder is a company director or member of a Limited Liability Partnership (LLP), any temporary working agreement should be adopted formally as a decision of the company or LLP.
2. Employees working as union or non-union representatives or as pension trustees
Whilst on a JSS Open or JSS Closed temporary working agreement, employees who are either union or non-union representatives may undertake duties and activities for the purpose of individual or collective representation of employees or other workers. However, in doing this during hours claimed for as not worked they must not provide services to or generate revenue for, or on behalf of your organisation or a linked or associated organisation.
Whilst on a JSS Open or JSS Closed temporary working agreement, employees who are pension scheme trustees or trustee directors of a corporate trustee may undertake trustee duties in relation to the pension scheme during hours claimed for as not worked. However, a professional, independent pension scheme trustee cannot during hours claimed for as not worked undertake trustee work that would provide services to or generate revenue for, or on behalf of, the independent trustee company or any organisation linked or associated with that independent trustee company.
Where such duties are undertaken, employees are entitled to be paid at least national minimum wage for this time. Where the time spent performing duties attracts a minimum wage entitlement in excess of the grant payment, employers will need to pay the additional wages (see National Minimum Wage Section for more details).
3. Company directors
As office holders, salaried company directors are eligible to be put on a JSS temporary working agreement and receive support through JSS Open or JSS Closed. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be put on a JSS temporary working agreement. Where one or more individual directors’ JSS temporary working agreements are implemented by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.
Where directors are on a JSS Closed temporary working agreements and need to undertake their statutory responsibilities to file accounts, pay employees and make JSS claims during hours claimed for as not worked, they may do so provided they only do these activities.
Where directors are on a JSS Open temporary working agreements they cannot undertake any duties during hours claimed for as not worked. Where they do need to do such duties these should be undertaken in hours worked.
This also applies to salaried individuals who are directors of their own personal service company (PSC).
4. Company directors with an annual pay period
Those paid annually may be eligible to claim if they meet the relevant edibility criteria. The eligibility criteria for JSS apply in the same way to those who are annually paid as they do to any other employee.
5. Salaried members of Limited Liability Partnerships (LLPs)
Members of LLPs who are designated as employees are eligible to agree and be put on a JSS Open or Closed temporary working agreement.
To put a member on a JSS temporary working agreement, the terms of the LLP agreement (or any such agreement between the LLP and the member) may need to be varied by a formal decision of the LLP, for example to reflect the fact that the member will perform less or no work in the LLP for the period of the agreement, and the effect of this on their remuneration from the LLP. For an LLP member who is treated as being employed by the LLP the reference salary for this scheme is the LLP member’s profit allocation, excluding any amounts which are determined by the LLP member’s performance or the overall performance of the LLP.
6. Agency Workers (including those employed by umbrella companies)
Where agency workers are paid through PAYE, they are eligible to agree and be put on a JSS Open or JSS Closed temporary working agreement including where they are employed by umbrella companies.
The temporary working agreement should be agreed between the agency, as the deemed employer, and the worker, though it would be advisable to discuss the need to do this with any end clients involved.
As with employees, agency workers should perform no work for, through or on behalf of the agency whilst they are on a JSS Closed temporary working agreement. This includes performing such work through or on behalf of the agency for the agency’s clients.
As with employees, agency workers will need to work at least 20% of the usual hours through or on behalf of the agency whilst they are on a JSS Open temporary working agreement. Agency workers should perform no work for, through or on behalf of the agency during hours claimed for as not worked. This includes performing such work through or on behalf of the agency for the agency’s clients.
Where an agency supplies clients with workers who are employed by an umbrella company that operates the PAYE, it will be for the umbrella company and the worker to agree the JSS temporary working agreement and submit any JSS claims.
7. Limb (b) Workers
Where Limb (b) Workers are paid through PAYE, they are eligible to agree and be put on a JSS temporary working agreement and receive support through JSS Open or JSS Closed.
Those who pay tax on their trading profits through Income Tax Self-Assessment, may instead be eligible for the Self-Employed Income Support Scheme (SEISS), extended by the Chancellor on 24 September 2020.
Read more information on the Self-Employed Income Support Scheme.
8. Contingent workers in the public sector
The Cabinet Office has issued guidance on how payments to suppliers of contingent workers impacted by COVID-19 should be dealt with where the party receiving the contingent worker’s services is a Central Government Department, an Executive Agency of a Central Government Department or a Non-Departmental Public Body.
Find more information on contingent workers impacted by COVID-19. This guidance applies to agency workers paid through PAYE, as well as those paid through umbrella companies on PAYE and off-payroll workers supplying their services through a Personal Service Company (PSC).
9. Contractors with public sector engagements in scope of the off-payroll working rules
Public sector bodies will follow the Crown Commercial Services guidance in the vast majority of cases. In a small number of cases, for example where organisations are not primarily funded by the government and whose staff cannot be redeployed to assist with the coronavirus response, it may be appropriate for a deemed employer to make a claim under the Job Support Scheme. Contractors who are deemed employees according to the off-payroll working rules might be eligible for this scheme.
In this scenario, if the public sector organisation wished to engage a contractor, they would have to confirm this with both the contractor’s Personal Service Company (PSC) and the deemed employer or fee-payer (as set out in the off-payroll working rules, usually the agency paying the contractor’s PSC). It should be formally agreed between these parties that the contractor is to do no work for the public sector organisation during their hours not worked. The deemed employer or fee-payer would be able to apply for the Job Support Scheme. The deemed employer or fee-payer would then pay at least the amount of wage-grant received to the PSC, and report the payment via PAYE using the contractor’s details, making the usual tax and National Insurance contributions (NICs) deductions for contracts in scope of the off-payroll working rules. The PSC would then be required to report the amount it pays to the contractor as deemed employment income via PAYE using box 58A on the PAYE Real Time Information return.
Where a contractor is continuing to receive payments from a public sector client (including through the Job Support Scheme or other any other scheme), income from this client should be excluded from any calculation of the reference pay for the purposes of the scheme if the contractor also decides to put themselves on a temporary working agreement as an employee or director of their own company.