Back to Work
Employment Grant Scheme
“Our most urgent priority is to get unemployed Islanders working, keep people in
work and create new employment opportunities and jobs through sustainable
economic growth”
Strategic Plan 2012
Purpose
To support employers in recruiting locally qualified people who are registered, long-term unemployed into permanent employment.
There are compelling reasons for the introduction of an Employment Grant to encourage the recruitment of the long-term unemployed:
- Record levels of registered unemployment.
- Rapid increase in long-term unemployment (doubled in 2011).
- Protracted recovery, now envisaged 3-5 years.
- Lowest level of full time, private sector vacancies for 12 years.
- Latest Jersey Business Tendency Survey – all sector indicators on employment and future employment were both negative.
These will also then be potentially further affected by worsening economic conditions following the UK Government’s decision to withdraw LVCR from the Channel Islands.
Unless positive action is taken, those who are long-term unemployed today are likely to remain so for the foreseeable future as the job market becomes highly competitive.
The introduction of an Employment Grant is designed to encourage and support employers in recruiting the long-term unemployed through the payment of a financial incentive.
The key aims of the proposed Employment Grant are to:
- Reduce the number of locally qualified people who are registered long-term unemployed.
- Encourage employers to take on the locally qualified, long-term unemployed into permanent employment.
- Support access to employment and upgrade the skills of those furthest away from the labour market.
- Provide businesses with the support to train and retrain long-term unemployed while in employment.
How the Employment Grant will work
A total sum of £7,200 will be paid to employers who recruit a locally qualified individual who has been registered as Actively Seeking Work (ASW) for 12 months or more into a permanent or long- term contract job and retain them for 12 months continuous employment.
- A maximum of £7,200 payable to employers.
- Available to all employers (except States of Jersey).
- The Employment Grant is applicable for the first year of employment in permanent or long-term contract (18 months+) roles.
- £7,200 will be pro rata for roles under 40 hours (i.e. part time posts). Minimum 8 hours per week.
- The full £7,200 is payable where the employee is being paid at the Trainee Rate and the employer meets the obligations and criteria that permit payment of the Trainee Rate.
- £7,200 is intended to cover a proportion of the employers’ costs (wage + employers’ Social Security contributions) for recruiting an employee.
- Three interim payments of £500 can be claimed after 13, 26 and 39 weeks. The remainder (£5,700) is paid after 12 months continuous employment. Interim payments are also pro rata for part time roles
- Quarterly interim payments are in excess of the Social Security contributions payable, based on minimum wage, 40 hours per week.
| Employment Grant claims |
Interim payments | £500 after 13, 26 and 39 weeks |
Final Payment | £5,700 after 12 months |
Total | £7,200 |
The Employment Grant is additional to the existing schemes operated under the Back to Work programme which provide support to unemployed individuals. This support will still be needed by the long-term unemployed to become work ready, secure and then maintain employment.
The Employment Grant is open to any employer operating in Jersey. This includes businesses, States-owned utility companies, charities and not-for-profit organisations. The States of Jersey is excluded.
Temporary contracts, short-term fixed term contracts, zero hours contracts and roles paid with an offset for accommodation/food are excluded.
Rules will exist to prevent employers releasing existing locally qualified staff to take advantage of the scheme.
Employers will source candidates through the Back to Work team. The initial target group for the scheme will be candidates who are:
- Locally qualified for work i.e. 5 years continuous residence, and
- Registered with Social Security as ASW for least 12 months
Those groups that have particular problems in accessing the job market, including those with issues of their physical or mental health, are included in the scheme, however, discussions will be held with relevant support agencies (e.g. the Jersey Employment Trust, Social Services) as to how the Employment Grant can be extended further to those who have not been registered as ASW for 12 months.
Businesses consulted requested interim payments to help with cash flow (predominately in relation to contributions payments). Based on this quarterly interim payments have been added to the Employment Grant. The interim payments of £500 cover the quarterly costs of contributions £421 (example based on minimum wage at 40 hours per week).
Legal Position of Scheme
The Employment Grant is a non-statutory scheme and will be formalised through a Ministerial Decision issued by the Minister for Social Security.
Legal Position of Employer
The employer will recruit the individual in accordance with their normal contract and terms and conditions. Normal probation and notice periods will apply and the employee will have existing statutory rights under Employment Law.
Outline process
- Employer contacts Back to Work for potential candidates
- Candidates supported/prepared for selection process
- Employer makes selection
- Employer provides evidence to confirm contracts etc
- Back to Work programme supports candidate/delivers any training etc
- Employer claims payments with ongoing evidence
Background
Registered Unemployment
Registered unemployment in Jersey has risen to record levels (1,810 ASW March 2012).
The combination of the economic outlook and the impact of the end of LVCR from the Channel Islands could result in registered unemployment rising further.
The number registered as unemployed (in February) for 12 months or more has doubled in the last year. This is the highest recorded to date (see graph below). One third of the number are aged under 25 and all those registered as long-term unemployed are locally qualified for work.
Long-term unemployment is associated with poor physical and mental health, social isolation and financial hardship. Workers who remain outside the workforce for some time find it much harder to re-enter it and their skills diminish.
Many will have additional barriers to employment (e.g. confidence, health, criminal records) which will make them less attractive to an employer and the longer they remain unemployed the greater these barriers appear to a prospective employer.
Licences for non-locally qualified (NLQ) staff (Labour Market Report – December 2011)
| Actual employees | Actual Licences |
Local (inc J) | 48,410 | 51,540 |
Non-Local | 5,380 | 8,380 |
Total | 53,790 | 59,920 |
The Population Office has reduced licence capacity – removing 940 NLQ licences over the last two years.
Vacancies
The total number of vacancies (full and part time) in the private sector in December 2011 was
1,980, a reduction of 40 on the figure recorded for December 2010.
The number of vacancies for full-time positions in the private sector in December 2011 (1,580) was
the lowest for at least 12 years.
This indicates that there are still vacancies available for employers to utilise the Employment Grant to support recruitment of locally qualified, long-term unemployed.
States Departments and agencies
Jersey already has a wide range of initiatives in place:
- Actively Seeking Work (ASW) – proactive weekly regime for those in receipt of income support benefit
- Work Zone – Personal advisers for jobseekers
- Advance to Work – Work placements and training for 16-19 year olds
- Advance plus – Work placements and training for those aged 20 or over
- WorkWise – For those with significant barriers to employment
- Work readiness training – To improve job search and interview prospects
- Job training fund – Short-term interventions to improve employability/secure recruitment
These are being expanded and enhanced under the Back to Work Programme in response to the changing unemployment and job market conditions.
However, the majority of this support is targeted at the unemployed individual and a key area for development is financial support for the employer to take on the locally qualified, long-term unemployed.
- Redundancy FAQ Unemployment Benefit
gov.je