Job Support Scheme: Seasonal businesses

Can we claim under JSS (Open) if our business is closed during winter?

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As a seasonal business that closes for winter, we have several staff who (in a normal year) work their socks off during the summer and work very little during the winter. This year they've also worked very little during the summer.

If we redeploy them in the business - such as in the office admin work or site maintenance (something we've known to do in the past anyway) - does it sound reasonable to claim under JSS? I can't see anything in the guidance so far to rule it out, but wonder if it's a bit of a contrived arrangement. 

 

Replies (7)

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By SXGuy
23rd Oct 2020 10:25

If that's what you will do, and they were to work the minimum hours required I see no reason why you couldn't claim. But I'd imagine you'd need to factor in what their usual hours would be in winter given your scenario.

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By PandoraSleeps
23rd Oct 2020 10:35

Is the reason for their working reduced hours due to coronavirus?

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Replying to PandoraSleeps:
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By the_drookit_dug
23rd Oct 2020 10:57

No - and that's my niggle.

Although the business has been really badly hit - it should have spent the summer building up funds to see it through the winter and pay the staff throughout the closed period. Instead it's incurred a massive loss through first being closed, then operating at way below capacity.

While the preamble mentions reduced demand, the eligibility criteria does not mention it. The policy paper does refer to abuse of the scheme though, and my fear is that claiming for employees who would not be working through the winter anyway may be considered such (despite being paid on an annualised hours contract).

The policy paper also states that all types of contract are eligible, including zero hours and temporary workers.

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Replying to PandoraSleeps:
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By the_drookit_dug
23rd Oct 2020 11:55

The guidance does state:

"For employees who are part of a flexible work time arrangement, employers should:

- not count as hours worked any hours that the employee worked but was not paid for because they accrued paid time off which they could take later
- count as hours worked any hours that the employee took as paid time off (‘flexi-leave’), which they had accrued by working additional hours at some other time"

Is that not essentially what an annualised hours contract is and - given they've been furloughed throughout most of the summer - means that their hours have in fact been reduced due to Covid?

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By Mr_awol
23rd Oct 2020 10:51

In what way are they 'seasonal'?

Are they on Zero hour contracts, etc and wouldn't normally be working (but would normally have earned enough in summer to cover that)? Are they on annualised hours contracts, in which case they'd normally be in credit but now aren't? Is it just that they would have normally taken more holiday but didn't, and now you're left carrying a holiday liability you're trying to get subsidised?

I suspect your intensions are admirable and that even with a claim you're going to be down on the deal (ignoring potential redundancy costs) but i also think it matters which of the three (possibly more) reasons there are for them not having much work, but being kept on. I haven't gone through the various what ifs though.

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Replying to Mr_awol:
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By the_drookit_dug
23rd Oct 2020 11:00

Annualised hours contracts - correct, they're not in credit having been off on furlough for most of the summer.

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By devonbuglet
08th Dec 2020 10:25

Hi,
I find myself in the exact same position. I have read the gov websites and have rung their helpline, to no avail. Have you got any news on anything?
A

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