Cha Chang nges es to to th the Cor e Coron onavir virus us - - PowerPoint PPT Presentation

Cha Chang nges es to to th the Cor e Coron

• navir

virus us Job

• b 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

• r 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

• f £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 10th June

Have you furloughed anyone previously? Yes Can furlough someone again if they’ve been previously furloughed Can furlough employees returning from maternity / paternity / adoption leave etc even after 10th June Can’t furlough someone for the first time No No longer able to furlough employees

• From 1st July onwards:
• Flexible furlough starts, but the grant amounts remain the same
• From 1st 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 31st – employer must top up balance to minimum 80% in respect of furloughed time

Revised Furlough Scheme Rules 1 July Onwards

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 hours.

• 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.

Health and Safety

• Government Guidance

− Review latest government guidance regularly − Review current procedures and improve if possible − Think of vulnerable employees (pregnant, clinically extremely vulnerable, co-habiting with elderly relatives, asthmatic etc.) and how you can adapt the workplace and their return to work to ensure they can work safely.

• Industry Standards

− Review regularly and ask questions if possible to make sure your workplace is compliant

If Return to Work is not possible....

• Lay-Off
• Redundancy
• Zero Hours Workers

Bringing staff back from furlough or unpaid leave may not be an option for your business as you may not be able to sustain their roles in the long term. Certainly this decision needs to be made on the expiry of the scheme on 31 October. Remember the risks of unfair dismissal and discrimination when making choices

Redundancy

• Definition
• It is a dismissal due to workplace closure, business closure
• r diminished requirements of the business for employees to

do work of a particular kind.

• Eligibility
• All employees may be made redundant if a genuine

redundancy situation arises.

• Normal redundancy rules apply to furloughed staff

Redundancy: The Process

• There is no mandatory procedure laid down by statute for

fairly dismissing an employee for redundancy. You should:

• Follow internal contractual redundancy procedure (if you have
• ne);
• Ensure that process is fair;
• Individually and / or collectively consult;
• Act reasonably and fairly.
• Different procedures if making less than 20 or 20 or more

individuals redundant.

Zero Hours’ Workers

• Genuine workers do not have continuity of employment

based rights

• Consider removing these individuals from payroll as a

starting point

• Could consider varying employment contracts onto this

basis – may be a redundancy and would certainly be a dismissal

Questions?

AHRC Online Portal – Exclusive Offer 12 months access to over 90 templates covering 14 topics for £125 + VAT including:

• Contracts and offer letters
• Flexible working
• Performance management
• Sickness absence
• Termination of employment
• Grievances

Online Training Sessions coming up:

• 8 July – Variations to contracts and making

redundancies

• 23 July – Managing Mental Health, Wellbeing and

Resilience

• Training brochure available on request

You can contact us at…

Jessica Piper

Jessica.piper@ashtonslegal.co.uk 07484 047520 www.ashtonslegal.co.uk

Lucy Pakes

Lucy.pakes@ashtonshrconsulting.co.uk 07738 730853 www.ashtonshrconsulting.co.uk