Purpose
To:
1. Look at the corona virus employee retention scheme
2. Look at the statutory sick pay scheme (as amended)
The corona virus employee retention scheme
Introduction
The government has advised that it will give businesses support up to 80% of the salary of their employees who would have lost their jobs in this crisis provided employers retain the staff and have explained that they are no longer going to be able to work during the crisis and must stay at home. The staff will be defined as “Furloughed Workers” and a claim can be made to HMRC.
Some employment contracts, depending on what the terms and conditions state will allow you to take advantage of the scheme without the need for any adjustment or discussion with your staff. Other contract types. will mean a discussion with the employee and you arrive at an agreement because you usually can not simply vary the contract of an employee unilaterally. It is worthwhile in the latter case getting the employee to confirm to the new arrangement in writing and for it to be placed on the employee personnel file.
Employers must remember that they are still responsible to pay the employee their full wages under their contract of employment. The government is just helping by providing up to 80% per month in this pandemic.
Who is eligible?
All UK employers with a PAYE scheme, thus it could be a business or a charity.
How much will I get per employee?
The amount is 80% of salary capped at £2,500. It covers all employment costs: salary, national insurance, pension costs etc.
When do I apply to get paid?
HMRC are working hard to get the scheme up and running and you will be advised by the government when it is ready.
Others Matters
The scheme is open for 3 months and is back dated to 1 March 2020.
Please remember, holiday pay and sick pay are still due to be paid as normal.
Risk of non-compliance
· A potential claim in the employment tribunal for constructive unfair dismissal (provided the individual is employed for two years).
· A negligence claim:-
o Employees ( and workers) are owed a duty of care.
o By refusing the above and insisting that they work, you are in breach of their duty of care as per any government policy guidelines regarding Covid -19 as well as a breach of the health and safety regulations, and
o The individual concerned has suffered loss and damage.
· I am not a personal injury expert, but I am sure a good one will try and make an employer liable under this head of claim if any harm was caused to the employee at work, because of the employer insisting for example that they must continue to work and the employee has been harmed at work, as a result of the employers failure.
In the current pandemic, non-compliance with government advice is not a good idea. Trying to insist this difficult times, in the life of all humans as holiday period, cannot be valid and should be refrained.
The statutory sick pay scheme (as amended)
Support for employers paying sick pay for the employed
Small and medium size business owners will be allowed to reclaim the statutory sick pay (SSP) paid to employees who have Covid – 19.
Employees that can claim
· Employees who have contracted Covid-19.
· Employees who have to self-isolate because of Covid-19
Eligibility
Employers who are in the UK and defined as a small or medium sized business who thus employ less than 250 people.
Other Matters
S38 to 40 of the Covid 19 emergency legislation is what deals with amendments to the statutory sick pay (SSP) legislation. S38 removes the 3 day need for workers to wait before they can receive SSP because the government wants to encourage people to stay at home when ill. It is important as an employer that you comply with this and the recent rule that only key workers must be working.
S39 enables the secretary of state to make the necessary amendments to encourage employees to stay at home if they are sick, so they can claim SSP now from day one. Employees must not be forced to work if ill or they have to self-isolate.
The SSP rules have been amended to encourage to help contain the virus and to try and reduce the pressure on the NHS. The bottom line is if this virus is not contained, many would die unnecessary. Let us play our part and try and be fair and keep social contact to a minimum.