Cha Chang nges es to to th the Cor e Coron onavir virus us Job ob Ret eten ention tion Sc Sche heme me Clair Claire e Sleep Sleep & Luc & Lucy y Pak akes es
Agenda I. The Furlough Scheme pre-1 July II. The Flexible Furlough Scheme Post-1 July III. Zero Hours Workers IV. Redundancy
Furlough Scheme – where are we? • The Introduction of ‘ Furlough Leave ’ – rules applying to 30 June 2020: − Assists business suffering from short-term reduction of work − Applies to employees and workers on payroll as of 28 February 2020 or 19 March 2020 − Employees cannot work for the company whilst on furlough leave (although can do training) − Must be furloughed for minimum of three weeks − Original scheme = business can claim back 80% of wages up to cap of £2,500 per month from 1 March 2020 to 30 June
Furlough Scheme – where are we? • Changes to be brought into the scheme from 1 July • To be eligible for the furlough grant for periods after 1 July, the individual must have been furloughed for a minimum of one consecutive 3 week period prior to the end of June . The last day to furlough someone was therefore 10 June. • Must have been furloughed at some point during the period 1 March – 30 June – don’t necessarily need to be on furlough on 30 June. • Exceptions for those returning from statutory family leave and long term sick leave – guidance expected.
New / repeat Furlough after 10 th June Have you furloughed anyone previously? Yes No Can furlough Can’t furlough someone again if No longer able to someone for the first they’ve been furlough employees time previously furloughed Can furlough employees returning from maternity / paternity / adoption leave etc even after 10 th June
Revised Furlough Scheme Rules 1 July Onwards • From 1 st July onwards: • Flexible furlough starts, but the grant amounts remain the same • From 1 st August onwards: • Employers can claim 80% of pay except employers’ NI and Pension contributions • Cap remains at £2,500 per month • From 1st September: • Employers can claim 70% of pay • Cap reduces to £2,187.50 per month • From 1st October: • Employers can claim 60% of pay • Cap reduces to £1,875 per month NB: furloughed employees still entitled to 80% of pay until October 31 st – employer must top up balance to minimum 80% in respect of furloughed time
Flexible Furlough Scheme • From 1 July, the minimum 3 week period is no longer in place for furloughed staff • Individuals can be brought back to work on any hours / working pattern as agreed with employer • They can be furloughed for the balance of hours • All decisions made in line with employment law
Flexible Furlough Scheme • Why might you want to use flexible furlough? • Health & Safety – cannot get everyone back together • Lower productivity / customer base • Only part opening • Have other roles individual could do that are not their usual duties • Individuals’ personal circumstances – e.g. childcare
Flexible Furlough Scheme • Although flexible furlough is possible from 1 July, you do not have to use it. • It is possible to fully furlough someone until the end of the scheme on 31 October, but the employer will start to have to pay the contributions. • Any time spent on furlough is based on the same rules – no work but can do training. • Holiday
Making claims under the Flexible Furlough Scheme • From 1 July onwards, you can only make claims for the relevant calendar month. All claims in respect of July time must be made by the end of July. • The last day to submit claims in respect of 1 March – 30 June is on or before 31 July . • The minimum claim period is 7 days (unless the last or first day of the month is included in the period and you claimed for the period immediately before, due to the claims having to be concluded by the end of the month)
Making claims under the Flexible Furlough Scheme • Otherwise the claim process remains the same. • The calculation of wages through usual / variable hours also remains the same, and workers are entitled to furlough as they have been to date. • You can still fully furlough people, up until 31 October if you wish.
Making claims under the Flexible Furlough Scheme • All staff furloughed at some stage in a pay period should be included in the claim for that period, even if they were for different lengths of time
Making claims under the Flexible Furlough Scheme • You must keep a record of: • The usual hours the individual would work during any claim period • The hours the individual will work / has worked in that claim period • The hours the individual was furloughed for in that claim period • These records must be kept for 6 years • You must also keep a copy of the written flexible furlough agreement with the individual for at least 5 years
Making claims under the Flexible Furlough Scheme • Claims made in any single period from 1 July may not exceed the maximum number of employees claimed for before 30 June • For example, if you have claimed in one period for 40 employees, one period for 30 employees, and one period for 60 employees, the maximum staff you can claim for going forwards in one period will be 60 staff (other than those returning from family leave)
What can you claim for • The things you can claim for: • wages, non-discretionary commissions, non- discretionary bonuses) remain the same. • The things you can’t claim for: • Discretionary bonuses, remain the same. • You can still claim for employer’s NI and pension contributions on the 80% rate of the furloughed hours in July – this will change from 1 August
What can you claim for • If you are fully furloughing someone, you claim in the same way as before (normal / variable hours). • If you are flexibly furloughing them: • Work out what would have been their usual hours in that period (either the last full pay period before March 2020 or, if variable, the higher of March 2020 or the equivalent month last year) • Work out how many hours they will be working and how many are furloughed hours
What can you claim for • You are responsible for paying staff in respect of the non- furloughed hour s. • For the furloughed hours, you can claim 80% (to the cap, as amended). • Can only claim the NICs/pension in July in respect of the furloughed hours. • You should wait until the end of a period before making a claim in case the hours worked changes. • For anyone returning from family/sick leave, the pay is based on their original salary pre-leave.
How to Calculate Your Claim If you want further information as to how much you should pay employees under the Flexible Furlough Scheme, the Government has created a helpful Coronavirus Job Retention Scheme Calculator.
Errors in claim • There is now a process in place to correct errors made, either by way of overpayment or underpayment (if underpayment you will need to contact HMRC). • If the error has been made but no further claims are planned, a process is being put in place.
Return from Furlough full time Notify Furloughed Staff of Return • Write to furloughed staff: a) Give them reasonable notice that they are returning; b) Confirm that their employment will continue on the pre- furlough terms and conditions; c) What date and time they are to attend work; d) What remuneration they will receive (this should be at the pre-furlough rate unless any other variation); and e) Inform them of any procedural changes in line with govt and industry guidance. Set up and complete online training if necessary. • Follow-up with a phone call
Return from Furlough part time • The “right” under the current variation of contract is: (a) to remain furloughed under the current agreement (b) return to work full time on the rate of pay previously agreed before furlough • To flexibly furlough you will need to agree a new variation of contract • Write or speak to the individual and discuss the arrangement you are seeking to impose – looking to gain consent
Return from Furlough part time • You should be clear with the employee what hours they will be required to work and what hours they will remain furloughed • You should explain what they will be paid for the respective hours (and if you want to effect a pay cut over the “worked” hours this should be dealt with separately) • Be mindful of worries about safety and about other considerations such as childcare • If they consent, the agreement must be recorded in writing and a copy of the agreement kept for 5 years • Usual employment law considerations and discrimination rules apply
Return from WFH Notify WFH Staff • Write to WFH staff: a) Confirm date of workplace opening; b) Inform staff of any changes to how they will carry out their work in line with govt and industry guidance. This could include use of PPE, different opening hours, staggered attendance in the office and spacing out of desks. Set up and complete online training if necessary.
Recommend
More recommend
