Back to Work Hospitality Incentive 2013 –
Guidelines
Back to Work
Working for Jersey, working for you
Introduction
The Hospitality Incentive has been designed to encourage and support hospitality employers in recruiting people who are registered as actively seeking work and locally qualified into the industry through the payment of a financial incentive.
The key aims of the scheme are to:
- Reduce the number of locally qualified people who are registered as actively seeking work.
- Encourage hospitality employers to take on people who are locally qualified and actively seeking work.
- Provide access to employment and upgrade the skills of people who are currently out of work.
- Provide the foundations for a shift in cultural mind set for:
- Employers to employ locally
- Candidates to take up job opportunities in the industry
- Enable job substitution.
How the Hospitality Incentive works
The incentive will be available when a hospitality employer recruits a candidate who has either been registered as actively seeking work for at least six months or has participated in the Back to Work Hospitality Training Programme. These candidates will be locally qualified and already registered as actively seeking work.
- Incentive payments can be payable to both employers and employees.
- An incentive of up to £2,080 can be paid to employers per candidate who is recruited for seasonal work for up to 26 weeks.
- An additional incentive of up to £1,000 is payable to the employer if a permanent contract is offered. The total incentive payable to the employer per candidate is therefore £3,080.
- An incentive of up to £650 can be paid to the employee if they are recruited and retained for the season.
Incentive Payments
All payments detailed below are made at the end of the season, as confirmed by the employer. No payments will be made in respect of any period of employment less than 13 weeks.
Employers – for contracts of 40 hours per week or more
For each candidate recruited and retained for an initial 13 weeks, the employer will be entitled to an incentive payment of £1,040, plus a further payment of £80 for each additional complete week worked. A maximum of £2,080 is payable after 26 weeks. These payments are payable at the end of the season.
If a permanent contract is offered by the employer, then an additional incentive payment of £1,000 is payable six months after the permanent contract start date.
A maximum incentive of £3,080 can be paid to employers per candidate employed for 40 hours per week or more.
Employers – for contracts of between 25 – 39 hours per week
For each candidate recruited and retained for an initial 13 weeks the employer will be entitled to an incentive payment of £650, plus a further payment of £50 for each additional complete week worked. A maximum of £1,300 is payable after 26 weeks. These payments are payable at the end of the season.
If a permanent contract is offered by the employer, then an additional incentive payment of £625 is payable six months after the permanent contract start date.
A maximum incentive of £1,925 can be paid to employers per candidate employed for between 25 – 39 hours per week.
Employees – for contracts of 40 hours per week or more
Each candidate who is successful in securing a position and who remains in employment for at least 13 weeks will be entitled to an incentive payment of £325, plus a further payment of £25 for each additional complete week up to a total of 26 weeks. All payments are payable at the end of the season.
A maximum incentive of £650 can be paid to an employee working 40 hours a week or more.
Employees – for contracts of between 25 – 39 hours per week
Each candidate who is successful in securing a position and who remains in employment for at least 13 weeks will be entitled to an incentive payment of £208, plus a further payment of £16 for each additional complete week up to a total of 26 weeks. All payments are payable at the end of the season.
A maximum incentive of £416 can be paid to an employee working between 25 – 39 hours per week.
For both employers or employees
- The value of the Hospitality Incentive is based on the number of contracted hours with the employee and not the hourly rate paid to the employee.
- The employer will confirm when it is the end of their season as part of their claim for the incentive. In doing so they will enable payments to be made to both the employer and the employee.
- The payment of the incentive at the end of the season is to support the employer in ensuring that the employee remains engaged until the end of the season.
- No immediate payments are available. Paying immediate or interim payments may encourage employers to release staff earlier to maximise the incentive or employees to depart early.
Qualifying employers
The Hospitality Incentive is open to any hospitality employer, registered under the Regulations of Undertakings Law, who takes on a candidate who has either been registered as actively seeking work for at least six months or has participated in the Back to Work Hospitality Training Programme.
Hospitality employers are broadly defined as those contributing to the Island’s tourism and service industry, including restaurants, cafés, hotels, bars, pubs, tourist attractions and various associated providers. The States of Jersey is excluded.
Qualifying candidates
The incentive applies only to candidates who have been registered as actively seeking work for at least six months or have participated in the Back to Work Hospitality training programme. These candidates will be:
- Locally qualified for work i.e. five years continuous residence, and
- Registered with the Social Security Department as actively seeking work or active clients of the Jersey Employment Trust.
Excluded candidates
- Any person who has not been registered as actively seeking work for at least six months or participated on the Back to Work Hospitality Training programme.
- Any person who is either not locally qualified to work or who is not registered as actively seeking work.
- Non-EU nationals whose visa does not allow them recourse to public funds are excluded.
- Any candidate who is deemed unsuitable for the Hospitality Incentive by Back to Work.
Qualifying contracts of work
- Permanent contracts.
- Fixed term contracts.
- Contracts of at least 25 hours paid employment per week.
- Zero hour contracts are included and incentive payments will be paid based upon the actual hours worked. A minimum of 25 hours paid employment is required for an incentive payment.
- Roles paid at the Trainee Rate (under the Employment Law) are included subject to the employer meeting the conditions which permit the payment of the Trainee Rate.
Excluded contracts of work
- Any candidates engaged through a recruitment agency on a zero hour contract.
- Sub-contracted work from a self-employed contractor.
- Any role which is already subject to grant aid or subsidy from another States of Jersey Department.
Employee Tax Liability
The payment to the employee will be made directly by Social Security. This payment will be exempt from Income Tax or Social Security Contributions. It will also be disregarded for purposes of Income Support.
Employment Grant
If the individual recruited under the Hospitality Incentive also meets the criteria of the Employment Grant and the individual is then recruited into a permanent role than the employer will be able to claim the Employment Grant (less any payments already made under the Hospitality Incentive). The employee may also receive the employee Hospitality Incentive.
Additional types of pay
The Hospitality Incentive is based on the number of contracted hours with 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 Hospitality Incentive payable to either party. These additional payments can therefore still be paid to the employee.
Outline process
- Employer contacts Back to Work with a vacancy and to source potential candidates.
- Back to Work team provides details of qualifying candidates who are best matched to the vacancy.
- Employer shortlists and selects candidates for interview.
- Back to Work provides the support necessary to prepare candidates for the selection process.
- Employer selects candidate.
- Back to Work team delivers any agreed training prior to employment.
- Employer issues a contract to the successful candidate and the candidate is employed.
- Employer submits application form with evidence of signed contract.
- Back to Work team confirm allocation of the Hospitality Incentive.
- Back to Work maintains contact with both the employer and employee.
- Employer confirms that employee has been released due to end of season.
- Employer claims payments submitting claim form with required evidence of employment for the period for which the incentive is claimed.
- Payment made directly to employer by Social Security.
- Payment made directly to employee by Social Security.
Legal position of employer
The person in respect of whom the incentive is payable will be an employee of the employer hoping to receive 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.
Claiming payments
Employers can claim payments when their season has ended. If a permanent contract has been issued then the additional payment can be claimed 6 months after the start date of the permanent contract.
Any claim will need to be supported with evidence that the individual has continued to be paid in accordance with their contract. The payment claim form is available from the Back to Work team.
For the employer, incentive payments will be made by BACS directly to the company or organisation’s bank account within 28 days of receiving a claim form with complete evidence of employment.
For the employee, incentive payments will be made by BACS directly to the individual’s named bank account within 28 days of receiving a claim form from the employer.
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.
When employment ends before the end of the season
It is intended that employees hired under the scheme will be successfully retained. 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 an issue arises.
In circumstances where employment cannot be sustained then the employer may still be able to claim a payment under the Hospitality Incentive.
Example scenarios are provided in the table below:
Scenarios | Time employed |
13 weeks or before | After 13 weeks |
Employee resigns | No incentive payment is due to either the employee or employer. | No incentive payment is due to the employee. Employers will still receive any payments due at the end the season. |
Employee is dismissed by Employer (e.g. for misconduct, attendance or lack of capability) | No incentive payment is due to either the employee or employer. | No incentive payment is due to the employee. Employers will still receive any payments due at the end the season. |
Employer ends contract due to lack of work (e.g. establishment closes at end of season). | Subject to confirmation by the employer, a pro-rata incentive is payable to the employee and employer for the completed weeks worked. | Subject to confirmation by the employer, both the employer and the employee will receive any payments due. |
Employee made redundant | No incentive payment is due to either the employee or employer. | Subject to confirmation by the employer, the employee will receive any payments due. No Incentive payment is due to the employer. |
Legal Position of Incentive
This is a non-statutory scheme. As such the terms of the Hospitality 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 Hospitality 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 Hospitality 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 Social Security Minister is final.
Provision and Publication of financial accounts
A number of requirements exist for any grant scheme operated by the States of Jersey to ensure that any funds granted are spent in the manner intended. These are detailed below for information.
The Comptroller and Auditor General may audit the employer where the grant received is the lower of £5,000 or 50% of total income received during that year.
Grant receiving organisations must provide accounts in accordance with the table below for each year in which a grant is made by the States of Jersey, except when there are grounds for exemption. An organisation is able to submit a request for exemption from provision and/or publication of accounts where doing so would disadvantage the organisation’s commercial interests, or breach confidentiality agreements, Codes of Practice (e.g. Access to Information held by the States, June 2004) or legislation (e.g. Data Protection Legislation).
Amount of Grant | Financial Accounts | Publication of accounts |
Greater than £100,000 (a) | Audited, signed accounts must be provided within 6 months of the organisation’s year end. | The signed accounts will be published by the Treasury in a report to the States (b). |
Between £25,000 and £100,000 | Unaudited, signed accounts must be provided within 6 months of the organisation’s year end. | The signed accounts will be retained at departmental level and made available to individual States Members on request. |
Less than £25,000 | Unaudited, signed income and expenditure Statement must be provided within 6 months of the organisation’s year end. | The signed statement will be retained at departmental level and made available to individual States Members on request. |
(a) This applies to a single grant of more than £100,000 or multiple grants – from one or more department(s) – for the same purpose that when aggregated exceed £100,000.
(b) In publishing a report to the States, the accounts will be publicly available.
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