Latest in Employment Law>Articles>Employment Status of Jobstart Scheme Workers
Employment Status of Jobstart Scheme Workers
Published on: 07/12/2021
Article Authors The main content of this article was provided by the following authors.
Chris Fullerton
Chris Fullerton

Where an individual is recruited under the government-funded JobStart Scheme, do they acquire the status of an employee and would the statutory rights and obligations of employees apply?

Employers can apply under the JobStart Scheme for funding to cover the following employment costs:

  • 100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months (or 9 months for a young person who meets additional criteria)
  • Associated employer National Insurance contributions
  •  Employer minimum automatic enrolment contributions.

Employers can stagger the start dates of the job opportunities up until the end of March 2022.

Whilst the Department for Communities (“DfC”) guidance refers to ‘employer’ and ‘employment’, it is not entirely clear whether this means that an individual who is given a JobStart Scheme-funded job must be employed under a contract of employment. The language in the Funding Terms and Conditions for Employers is inconsistent in this respect. For example, section 4 regarding the Payment of Funding states that "The Funding Recipient may request payment of the first Funding instalment once the Participant has started working with the Funding Recipient.". There is no indication of any form of contract of employment here. Yet further on in the same section, it is stated that, “Payment of the first Funding instalment will be made following receipt by DfC of a request for payment and confirmation to DfC’s satisfaction that the Participant has started employment with the Funding Recipient.” This would suggest the existence of a contract of employment.

Nevertheless, there is nothing to demonstrate that the rights and obligations between the employer and employee would be limited in the case of an individual who is employed under a contract of employment which is funded by the JobStart Scheme.

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 07/12/2021