Back to Work – Autumn 2021 Employer Incentive
Guidelines
#RecruitLocal
Introduction
The Autumn 2021 Employer Incentive is a new initiative which will enable employers to hire locally qualified jobseekers for up to eight weeks at no financial cost.
Under the Autumn 2021 Employer Incentive, up to eight weeks’ wages and social security contributions will be paid to employers who hire locally qualified jobseekers that have been registered as actively seeking work throughout 2021. The incentive will be offered from 20th September to 31 October 2021 and is open to Jersey employers.
Employers who subsequently retain candiates for 6 months or more on permanent or longer term fixed term contracts may also claim further incentive payments.
The key aims of the incentive are to:
- Encourage & financially support employers to recruit staff who are longer term unemployed.
- Bring those furthest from the job market closer to securing long-term sustainable unsubsidised employment.
- Enhance the employability and in-work skills of registered jobseekers who have been out of work for at least six months, or 13 weeks if they are under 25 or over 50.
- Provide employers with the opportuinity to recruit the number of candidates, which best reflects the forthcoming seasonal work schedule of the business.
How the Autumn 2021 Employer Incentive works:
Back to Work will:
- Fund salaries directly to employers on the following basis:
- Starting between Monday 20th to Monday 4th October inclusive an 8-week incentive
- From Monday 11th October – 7-week incentive
- Monday 18th – 6-week incentive
- And then the last one from Monday 25th Oct, a 5-week incentive
- Funding will not be available after 5th December
- Funding will be based on minimum wage plus employer’s Social Security contributions. Employers can pay a higher wage should they wish to do so by topping up the hourly rate the employee will be paid.
- Funding will be based on roles that require employees to work for a minimum of 25 hours and a maximum of 35 hours per week. Employers can top up hours using their own funds should they wish to do so (for example 40 hours per week).
- The value of the incentive is based on the number of contracted hours the employee works (if an employee only works 25 hours per week funding will be on a pro-rata basis).
- Work with the target group of candidates to ensure they are prepared to take full advantage of the incentive employment opportunities.
- Provide a fully supported recruitment process to ensure the employer can select and employ the right candidate for their needs.
- Provide an in work support service whereby a Back to Work advisor can support the employer and the employee once the employee has commenced the role. The advisor will help to ensure that any concerns or queries are raised at an early stage to help to ensure the smooth running of the programme.
As an employer under the Autumn 2021 Employer Incentive, you will:
- Employ candidates under your usual terms and conditions.
- Provide the successful candidate with a contract of employment. Help with contracts can be provided if required.
- Pay successful candidate in line with usual payroll procedures including employee Social Security contribution schedule and ITIS returns.
- Train and support the employee in their new role.
- Provide ongoing feedback to the employee and Back to Work on how they are progressing and provide a formal review at the mid-point of the incentive period, the completed review paperwork will need to be received by Back to Work, before the final payment can be processed.
Qualifying employers
The Autumn 2021 Employer Incentive is open to Jersey registered employers, who employs a candidate from the target group between the 20th September and 31st October 2021. This includes charities and not-for-profit organisations and excludes Government departments and Parishes.
Qualifying candidates (‘Target Group’)
The Autumn 2021 Employer Incentive applies to candidates that have been registered as actively seeking work since before 1st May 2021. These candidates will be:
- Locally qualified for work, i.e. Entitled or Entitled to work , and
- Registered with the Customer and Local Services Department as actively seeking work or active clients of the Jersey Employment Trust.
Excluded candidates
- Any person who falls outside the target group.
- Any person who is not locally qualified for work.
- Non-EU nationals whose visa does not allow them recourse to public funds.
- Any candidate who is deemed unsuitable for the Autumn Incentive.
Qualifying contracts of work
- Permanent contracts
- Fixed term contracts
- Temporary contracts
- Zero hours contracts - incentive payments will be paid on the actual hours worked.
Excluded contracts of work
- Any role which is already subject to grant aid or subsidy from another Government of Jersey scheme.
- Any job paid with an offset for accommodation and/or food.
- Any role which is paid below the Minimum Wage (£8.32 per hour).
Value of funding
The Autumn 2021 Employer Incentive supports roles between 25-35 hours per week and provides funding at minimum wage (£8.32) plus employer Social Security contributions (6.5%). The weekly value of the incentive will therefore range between £221.52 (25 hours) to £310.13 (35 hours) depending on the number of hours worked. Employers are able to pay a higher hourly rate and also offer employment for more hours per week.
The maximum payable per candidate over the 8 weeks is therefore 8 weeks at 35 hours per week;
(8 x £310.13=£2,481.04).
Back to Work is keen to encourage employers to keep candidates on for long-term roles. In addition to the Autumn Incentive, further funding may be available for roles that become long-term:
- Employment Incentive
- Paid Training
Additional types of pay
The Autumn Incentive is based on the number of contracted hours worked by the employee.
Additional payments such as overtime, bonuses, commission, tips, benefits in kind (e.g. car, uniforms etc.) do not affect the amount of the Autumn Incentive payable to the employer. These additional payments can therefore still be paid to the employee.
Claiming incentive payments
Employers claim incentive payments monthly in arrears.
Employers will need to provide supporting evidence that the individual has been paid (e.g. payslips).
It is the responsibility of the employer to ensure that employees recruited with the support of the Autumn Incentive are aware that personal information (employment contracts and payslips) will be provided to Customer and Local Services as evidence for a claim. Employers should note that if they don’t obtain an employee’s consent it is a breach of data protection rules.
Outline incentive process
- Employer contacts Back to Work to discuss potential role.
- A selection of candidates will be provided to the employer. When sending the selection of candidates the Recruitment Officer will state what incentives the candidate is eligible for and what the employer needs to offer to be able to access these.
- Employer selects and recruits candidate and advises Back to Work Recruitment of decision.
- Employer issues a contract of employment to the successful candidate.
- Employer signs incentive agreement with Back to Work and provides a copy of the contract of employment.
- Back to Work maintains contact with both the employer and employee and provides in work support to employee and employer throughout the period of the role.
- Employer claims incentive and provides copies of payslips.
- Back to Work pays incentive to employer via BACS.
- Employer confirms if the employee has been released or maintained as an employee at the end of the role.
Legal position of employer
The person in respect of whom the incentive is payable will be an employee of the employer receiving the incentive. The employer will recruit candidates in accordance with their normal contract and terms and conditions. Normal probation and notice periods will apply and the employee will have statutory rights and responsibilities under the Employment (Jersey) Law 2003.
Employee sickness absence or unpaid leave
The employer will recruit candidates in accordance with their normal contract and terms and conditions. Should the employer not pay the employee for a period, e.g. unpaid leave or sickness absence, then the employer will not be able to claim a payment for this period.
Support for employers
It is intended that employees hired under the incentive will be successfully retained for the period of the incentive and also hopefully employed after the incentive period has ended. However, should issues arise; support will be available to employers through the Back to Work team to help the employee overcome any issues. Employers should contact the Back to Work team as soon as any issues arise.
In circumstances where employment cannot be sustained then the employer will still be able to claim incentive payments for the time the employee has worked within incentive period.
Legal Position of the incentive
This is a non-statutory scheme. As such the terms of the Autumn Incentive can be amended or withdrawn without notice at the discretion of the Minister for Social Security.
It is very much hoped that employers will use the Autumn Incentive as intended. In particular, it is expected that employers will act in good faith and not release existing staff with the intention of replacing them with new employees under the Autumn Incentive.
The Minister therefore reserves the right to:
- Restrict or refuse specific employers from access to this or future schemes.
- Withhold or cancel interim or final payments to specific employers.
- Request additional evidence from the employer.
- Request evidence from the employee.
- Recover incentive payments incorrectly claimed.
- Use Social Security contributions data and benefit data to verify claims made under the scheme.
Additionally, circumstances may arise in which an employer claiming a payment under the scheme is being pursued for monies owed to the department. Should this situation arise the Minister reserves the right to offset incentive payments against any monies owed to the department.
As a non-statutory scheme the decision of the Minister for Social Security is final.