Increase in National Living wage

The government has announced it has accepted the Low Pay Commission’s recommendation of a 6.6% increase in the UK’s National Living Wage.

From next April, millions of low-paid workers over the age of 23 can expect to earn no less than £9.50 per hour. Those aged 21 to 22 will see their hourly rate increase from £8.36 to £9.18.

While this is good news for low-income earners who have been hit by rises in inflation, universal credit cuts, and spiralling energy bills in recent times, the move will inevitably impact business budgets. Companies should start planning for these financial changes to ensure their cash flow is protected when the increase comes into effect.

New rates for minimum wage

As businesses are starting to open up you will need to ensure that you are paying your employees the current minimum wage which increased in April 2021.  The Living Wage now applies to 23 years and over where before it was 25 years and over.  The new rates are:

Age                                                                 new rate

Aged 23 and above                                         £8.91
21 to 22 year old                                             £8.36
18 to 20 year old                                             £6.56
16 to 17 year old                                             £4.62
Apprentice rate                                               £4.30

Employee dismissed due to being at a Club whilst off work sick

A few weeks ago, there was case in the employment tribunal relating to an employee who was dismissed because he was off sick from work but seen at a social club drinking and smoking by a manager.  The company commenced disciplinary action against the employee and dismissed him for gross misconduct on the basis that he was not fit to work but was out socialising.  The tribunal judge decided that the employee had not been unfairly dismissed as the company disciplinary policy did not define that socialising whilst off sick was a disciplinary offence. 

There has been much debate around this case and it is not straightforward.  If an employee is off work due to long term sickness such as mental health issues or cancer then the employer cannot expect the employee to stay home and not go out. 
 
It is impractical to list every incident that may amount to gross misconduct in the company disciplinary procedure.  However, after this case, it would be useful for employers to consider if the policy requires updating. 

Furlough scheme not extended

With the news that the current coronavirus restrictions are likely to remain in place for another 4 weeks – subject to a governmental review at the start of July – the hospitality industry is bracing itself for another tough period of profit-curbing limitations.

UK Hospitality, the organisation representing the nation’s pubs, bars and restaurants, predicts that another month’s delay in the lifting of restrictions will cost the hospitality sector around £3bn in sales.

As an employer in this space, you’ll want to do everything you can to weather this next (hopefully short-lived) storm – including protecting your staff as best you can. If you’re not sure where to turn, contact our employment specialists for help navigating the latest rules and mitigating the effect the lockdown easing delay will have on your most valuable assets: your people.

Rishi Sunak has announced that the government will not be extending furlough support and business rates relief beyond the start of July, despite the delay in the easing of COVID-related restrictions here in the UK.
 
Major voices – including Ed Miliband, the shadow business secretary – have shared concerns over the fact that support packages do not now seem to be in step with public health restrictions. Many sectors, including the entertainment, arts and wedding industries, are still facing huge challenges as they are not able to trade (or trade at a profit) due to our part-opened economy.
 
If your company is continuing to be affected by lockdown measures, your next steps could make or break your business. We can provide comprehensive support at what is a crucial time for all organisations and their owners, not least those disproportionately affected by the ongoing pandemic.

National Lockdown

 

We hope you are well and staying safe.  Happy New Year to you.

Due to the announcement last night of the national lockdown, you may have decided that you will need to close your business and furlough your employees or ask them to work from home.

If you are furloughing the employees you will need to ensure that you have a furlough agreement in place confirming that they are being furloughed and you need to keep a copy of the written agreement for 5 years.  If you have previously had an agreement in place and there was no confirmed date when it will end, you can continue to use this.  The current furlough scheme has been extended to 30 April 2021.

If you are lucky enough to continue to remain open, you still have a duty to provide a Covid safe workplace and due to the current restrictions, you may need to consider if you need to make some adjustments.

If you have employees working from home, you have a duty to make sure that they are safe to work at home and we would suggest that you also consider their mental health.  Keeping in touch with them regularly and arranging team calls is a good way to interact with each other.  Also, still hold regular meetings such as 1-2-1 so that you can discuss any concerns with them.

You may want to consider any employees that are on furlough to take some of their holiday entitlement during the furlough period.  You will need to pay them the full salary for the holiday but can use furlough payment towards the holiday – claim 80% and top up with 20%.  This will mean when your business opens, you will not have to juggle too much holiday being taken.

If you have any questions please contact us on 01245 261883.

Stay safe.

Increase to minimum wage

 In April 2021 the National Minimum Wage will increase to the following:

 

Aged 25 and above	£8.72	£8.91
23 to 24-year-olds	£8.20	£8.91
21 to 22-year-olds	£8.20	£8.36
18 to 20-year-olds	£6.45	£6.56
16 to 17-year-olds	£4.55	£4.62
Apprentice rate	£4.15	£4.30

Annual Leave - use it or lose!

It is only 15 days until Christmas and 21 days until the end of 2020.  No doubt after this year, you will be glad to move in to 2021!

If your holiday year for your business runs from 1 January to 31 December, employees normally have to take all of their holiday before the end of the year or they lose it.  However, due to the Covid-19, the rules have changed with regard to holiday and employees do not lose the holiday but in fact can carry holiday over in to holiday leave period 2021 and 2022. 
 
We would suggest that if any of your employees are currently being furloughed that you ask them to take any holiday during the furlough period to reduce the need for them to take excessive holiday in the annual leave period 2021 and 2022.  If you ask employees to take holiday, you must give them twice the amount of notice to take the holiday, e.g., they take one day’s holiday you have to give them two days’ notice to take the holiday. 
 

hey must be paid their full contractual rate of pay for the holiday.  If they are on furlough you can claim furlough payment and pay the additional amount between furlough pay and contractual pay for the holiday.