Furlough Scheme update

The last few weeks has seen so many changes to businesses due to the Lock down. If your business has not been able to work remotely and has had to close, no doubt, you will have taken advantage of the Furlough Job Retention Scheme. 

Since the Furlough Scheme was announced the Government have published further details and we have set them out below.

These are the key points, some of which had not previously been announced:

• the scheme is open to all UK employers that had a PAYE scheme in place on 28 February 2020;

•  any organisation with employees can apply, including charities, recruitment agencies.  With agency employees, the scheme is only available for agency employees who are not working;

• employers can reclaim up to 80% of wage costs up to a cap of £2,500 per month, plus (not including) the associated employer NICs and minimum auto-enrolment pension contributions on that wage.  Fees, commissions and bonuses are not included;

• an employer can choose to top up to 100%, but does not have to (any changes are subject to employment law and renegotiating any contractual entitlements);

• for employees whose pay varies, the employer can claim for the higher of (i) the same month's earning from the previous year (e.g. earnings from March 2019); or (ii) average monthly earnings in the 2019-20 tax year;

•  individuals are only entitled to the minimum wage for the hours they work.  So, if they are furloughed and do not work, and 80% of their normal earnings would take them below the minimum wage based on their normal working hours, they still only receive 80% as they are not working.  However, they are entitled to be paid National Minimum Wage for any time spent training;

•  to be eligible, the employee must have been on the payroll on 28 February 2020.  If they were hired later, they are not eligible.  Anybody who was on the payroll on 28 February 2020 and has since been made redundant can be rehired and put on the scheme;

• furlough leave must be taken in minimum blocks of three weeks to be eligible for funding, there is nothing in the guidance which prohibits rotating furlough leave amongst employees, provided each employee is off for a period of at least three weeks;

• the employee must not be working at all.  If they work for even an hour, they are not eligible to be furloughed.  However, they are able to undertake training and do volunteer work, provided they do not provide services to or make any money for their employer.

• when agreeing changes in hours (and acceptance of 80% pay), if the contract does not already allow for that, normal employment law applies.  The employer must be careful not to discriminate in deciding who to offer furlough too; 

•  employees on sick pay or self-isolating cannot be furloughed, but can be furloughed once they are no longer on sick leave.  Employees who are shielding (isolating) in line with Public Health Guidance, can be placed on furlough;

• employees on maternity (or similar) leave can continue to draw SMP (or similar) payments.  The guidance does not prohibit women on maternity leave agreeing to return to work early and then being furloughed, or electing to change to shared parental leave and then being furloughed.

• employers can only claim once every three weeks, i.e. they cannot get weekly reimbursement.  Claims can be backdated to 1 March 2020;

• HMRC hope to have the portal available by the end of April 2020.

 If you would like to discuss Furlough or check if your employment contracts require changes to protect your business once you are able to return to work, please contact us on 01245 261883

Covid-19 and Lockdown

The Prime Minister last night (Monday 23 March 2020) announced that the UK is in lockdown and there are restrictions in place to stop the spread of the Virus.  People are allowed to go out to buy essential items such as food and medication.  They can only go out to exercise once a day, in open spaces and must adhere to the 2 metres distance space and only 2 people can be together and can only be more than 2 people if they are members of your household.

The Prime Minister announced that people can travel to and from work when they cannot do the work at home.  This is still being debated as it is ambiguous and unsure if it applies to key workers only set out by the Government.

As business owners if the work can be undertaken by your employees at home, you should let them do this.  If they cannot do their work at home and the business has to remain open and is not in the list of businesses that has to close, then you should ensure that there are 2 metres space between employees, provide hand sanitiser and clean the areas on a regular basis.

If you are in the situation that your business has had to close and employees cannot work from home, you can use the Government option to Furlough them.  The Government will reimburse the business for the salary that you have paid out.

What does Furlough mean? – it effectively is placing the employee on standby whilst the company is closed and the employee cannot work for the company due to it being closed.

To qualify to Furlough the employee they must have been paid by the business in February.  The employee is paid 80% of their salary up to a maximum of £2,500 per month.  The business has to enter the details into HMRC portal which is still being designed.

If you have employees that have been notified by NHS that they have an underlying health condition and must isolate for 12 weeks, then they will be paid SSP and not be placed on Furlough.  The reason for this is that they cannot work due to being isolated and not that the employer cannot provide them with work.

The situation is changing daily and if you have any concerns for your business, please contact us to discuss on 01245 261883.

Have your employees got any annual leave left?

Employers have to remind employees that they have to use any unused holiday up by the end of the holiday year.

Previously, if the employee hadn’t taken their holiday, they would lose it and they would not be able to carry it over to the next year. This changed due to case law and you now need to give the employee the opportunity to use it.

Employers need not require employees to take leave, but must inform them accurately and in good time of the right to take leave. If your holiday leave ends on 31 December 2019, it is important that you remind your employees that they have to take the remainder of their annual leave entitlement before 31 December 2019 or they will lose it.

For more information on all employment issues, call us on 01245 261883

Christmas parties – enjoy them but don’t get caught out!

Office parties can be a great way to reward your staff and thank them for their year’s work. However, if it takes place outside the workplace, the employer is still responsible for their employees.

The law states that the employer may still be liable for incidents, including harassment that takes place at work-related social events and could be at risk of a tribunal claim.

More often than not these are alcohol related and although you do not want to be seen as a spoilsport, there are simple ways that you can reduce the amount consumed. The employer must also remind their employees that they should be mindful of their behaviour at these parties and the potential consequences for their actions. Some simple actions that can be put in place to avoid potential problems.

6 simple things to do:-

• Remind everyone of the policies – send a note around the day of the party so people know the company rules apply outside of the office too;
• Have a dress code – it helps keep things professional (probably best to avoid a ‘saucy Santa’ theme though!);
• Make sure there is plenty of food prior to drinking – to help soak up the alcohol;
• Ensure there are non-alcoholic options available – for those that don’t drink alcohol too;
• Hand out drink tokens – to help regulate consumption, once they have run out, they can buy their own; 
• Make sure everyone can get home – ensure the party finishes before the last train leaves, or arrange taxis / minibus. 

And finally, ensure that your employer’s liability and directors and office insurance are up to date

2020 May bank holiday will be moved to mark 75th anniversary of VE Day

The early May bank holiday in 2020 will move from Monday 4 May to Friday 8 May to mark the 75th anniversary of VE Day which takes place on 8 May, and enable people to pay tribute to those who served in one of the most significant events in our country’s history, Business Secretary Greg Clark announced.

The occasion will remember the contribution of British, Commonwealth and Allied armed forces personnel; those who contributed to the war effort and safeguarded the Home Front. As well as marking the Allies’ victory in 1945, the bank holiday will serve as an opportunity to pay tribute to those who have served and continue to serve in the UK Armed Forces and their families.

Commemorative events will take place over the 3-day weekend across the country, including:

• the Nation’s Toast, where over 20,000 pubs will encourage patrons to raise a glass to the Heroes of World War II
• bagpipers playing the traditional Battle’s O’er at the top of the 4 highest peaks in the UK – Ben Nevis in Scotland, Scafell Pike in England, Mount Snowdon in Wales, and Slieve Donard in Northern Ireland
• bells in churches and cathedrals across the country joining forces in a special Ringing Out for Peace
• local street parties and celebrations across the 3-day weekend

Read more here. 

 

Contact us today on: 01245 261883 or send an email to contactus@littlerock.co.uk

Getting your business prepared for UK employment law changes in 2020

In December last year, the government published details of its ‘Good Work Plan’, which is a dossier that set out specific proposals to reform public employment law after carrying out an extensive review of the modern employment practices across the country. The aim of the proposal is to ‘ensure workers can access fair and decent work, that both employers and workers have the clarity they need to understand their employment relationships, and that the enforcement system is fair and fit for purpose.’ Most of the changes are not to be expected to be implemented until 2020, however, they can sometimes catch the public and businesses out and therefore we would advise that you act now to avoid being caught off guard. Here are some of the key changes proposed by the Good Work Plan: Contractual Changes  Statement of Terms and Conditions  Currently employers have TWO months to provide a Statement of Terms and conditions to employees, but from April 2020 this will be a ‘day one’ right; Employers will also have an obligation not only to provide a Statement of Terms and Conditions to employees, but also to workers – something which they have not had to do before; Additional details will have to be provided in the Statement of Terms and Conditions, such as details of any probationary period, benefit entitlement and details of any paid leave. Key Facts for Agency Workers  Business’ who engage Agency Workers will have to provide them with a ‘Key Facts Page’; a document which needs to include details such as the type of contract they are employed under, details of any fees that might be taken and the minimum rate of pay they will receive. Right to request a more stable contract  After 26 weeks of employment, an employee will have the right to request a more predictable and stable contract. An employer will have THREE months to consider and respond to any such request; in the main this will benefit casual or zero-hour employees, who might seek to request a guaranteed number of hours per week or to have stability over the days of the week that they are asked to work. Operational Changes Continuous Service  As things stand, a gap of one week can break an employee’s continuity of service. For employers who regularly engage the same individuals on a sporadic or casual basis, this protects against the build-up of any significant length of service; under the Good Work Plan, this gap will be extended to four weeks. Tips and Gratuities  New legislative guidance will require all tips and gratuities to be passed directly to an individual, rather than being given to the employer to be split out amongst staff (or to be kept by the employer as sometimes happens). Holiday Pay  The reference period used to calculate holiday pay (i.e. for those who work variable hours) is currently 12 weeks, but this will be extended to 52 weeks. Enforcement Changes Harsher Penalties  Employment Tribunals will be given the power to impose harsher penalties on employers who don’t abide by the rules; The previous penalty for an ‘aggravated breach of employment law’ was a maximum of £5,000, but this has now been increased to £20,000; For repeat offenders, further sanctions will be introduced in cases where they lose a second Tribunal case ‘on similar grounds’ to a previous claim. Judges will be required to consider in all cases such as this whether a penalty should be imposed; Naming and Shaming  If an employer fails to pay compensation awarded by a Tribunal, they will in future the prospect of being publicly named and shamed. This is in addition to the presently available sanction of receiving a penalty notice to pay another fine of up to 50% of the originally unpaid award. Contact us to understand how you can implement these changes in your company on 01245 261883 or email contactus@littlerock.co.uk