CORONAVIRUS JOB RETENTION SCHEME AND STATUTORY SICK PAY

With the ever changing situation with regards to COVID-19 and how this effects businesses if you have employees, we have detailed below what the Coronavirus Job Retention Scheme involves and the present position on Statutory Sick Pay.

Coronavirus Job Retention Scheme

HMRC will set up a new online portal so that ALL UK employers, regardless of size, will be eligible for assistance where an employee has been designated as a ‘furloughed worker.’ HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month.  The current plan is that this will be in place for 3 months, at which point it will be reviewed.  This will be backdated to 1 March 2020.

Employers must set out which of their employees are ‘furloughed workers’ and inform particular employees.

Furlough is the equivalent of lay off. So, you can lay off staff, continue to pay them and recover 80% of that cost up to £30k per annum.

The current guidance states ‘You will remain employed while furloughed. Your employer could choose to fund the differences between this payment and your salary, but does not have to.’

Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation. Our HR support line can help (0844 892 2807).

Questions we have been asked, and our answers, given the current information (23^rd March 2020)

1. Can an employee still work if they are Furloughed?

• No, it is classed as being laid off.

2. My employees received a pay rise in March, will I be able to recover 80% of this higher rate, or will the rate of pay be that as at 28^th Feb?

• We are awaiting clarification of the details.

Statutory Sick Pay (SSP)

Employers will be able to reclaim up to 2 weeks of SSP payments per employee where those SSP payments related to Coronavirus. This applies to all UK employers with 250 employees or less as at 28 February 2020.

The reclaim will not be via RTI, instead, HMRC will set up a new portal to facilitate this.

Please call us on 01132864486 if you need assistance.