News and Insights
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|6 April 2020
So our politicians have acted to save jobs and stop redundancies?
Yes, the Government of Jersey has announced business support measures to help Islanders during the COVID-19 outbreak.
New schemes will hopefully help people keep their jobs who might otherwise be made redundant and encourage businesses to retain their employees.
Sounds good. I need to keep paying my staff – can my business benefit immediately from these schemes?
Potentially. The Phase One scheme relates to the period between 20 March and 31 March 2020.
In a nutshell, the Government will retrospectively pay employers (and self-employed workers) up to £200 per week towards wages for individuals working in certain sectors: hotels/restaurants/bars / wholesale/retail (excluding food) / fisheries/hairdressing and beauty.
The first payments in Phase One are due in early April 2020.
For detailed information and for answers to frequently asked questions on the Phase One scheme, please click on these links:
Government Co-Funded Payroll Scheme: Phase 1 FAQ's
Government of Jersey Support for Business and Employment
Sadly, my business is not in any of those sectors. Surely that can’t be the only job retention scheme the Government has created?
Happily no it isn’t. The Government has also set up a Phase Two ‘enhanced support scheme’. This scheme is available from 1 April to 30 June 2020.
The Phase Two scheme is available in Jersey to: (a) self-employed workers such as sole traders and partnerships who pay class 2 social security contributions; and (b) businesses which experience significant detriment due to the restrictions.
My business has experienced ‘significant detriment’ to say the least! So I will be able to claim then?
Unfortunately, not in all cases, I am afraid.
The long list of business sectors below are not included in either the Phase One or Phase Two schemes:
Agricultural and wholesalers / Financial, legal, accounting, management and professional services / Information and communication activities / Property development / Advertising employment agencies and HR services / Medical and dental care activities (that are not shut down) / Freight, water and air transport / Utilities / Supermarkets, pharmacies, grocery stores, and fuel retailers / Food and beverage producers / Postal and courier activities / Consultancy services / Veterinary activities / Education (not nurseries) / Social care and residential care activities / Office administration and support / Security services / Government-owned entities.
For detailed information and for answers to frequently asked questions on the Phase Two scheme, please click on these links:
Government of Jersey Support for Business and Employment
So I qualify for support under the Scheme. Will the Government cover all the payments I need to make to my staff?
In short, no. The maximum subsidy for each retained worker is either 80% of that person’s gross monthly salary or the sum of £1,600, whichever is the lower.
This means a maximum cash payment of £1,600 per month is available to businesses for each worker.
Workers earning more than £10,000 a month do not qualify for the scheme however.
Understood. How do I apply?
Businesses will be reimbursed after wages have been paid.
A dedicated online form will be available to apply. You will need to provide your contact details, industry, bank details, a schedule of each worker and the wages they have been paid for that month (including social security numbers) and declarations related to each of the conditions of the scheme.
If you have any questions then email the Economy Team at their email address: economy@gov.je.
This update was helpful, thank you. If I have more questions to ask can I turn to anyone for business support?
Additional resources are being provided by Jersey Business. Individual businesses and sole traders can speak to Jersey Business about the significant professional support, advice and guidance which is available at no charge to the business.
The following resources and people will be able to help further too. Click on the links below to be redirected:
Jersey Business: https://www.jerseybusiness.je/coronavirus/
JACS: https://www.jacs.org.je/employment-advice/coronavirus/
You can also contact us at Viberts! We are on hand to assist with all and any concerns that you may have, including the legal implications of coronavirus on your business. If you need any further advice, please do not hesitate to contact oliver.hughes@viberts.com.