BCLP At Work

BCLP At Work

Other Posts

Main Content

Coronavirus: UK Job Retention Scheme – previously excluded employees now in scope to be furloughed

Summary

Key points arising out of the revised guidance and the legislative framework include:

1. Eligibility cut-off date extended from 28 February to 19 March: This is the most significant change to the UK Coronavirus Job Retention Scheme (CJRS) guidance. It brings into scope many new recruits who previously could not be furloughed. Earlier versions of the guidance said that new recruits who joined after 28 February were excluded from the scheme. However, the latest guidance now says that individuals put on the employer’s payroll on or before 19 March, and in respect of whom the employer has also made an RTI submission to HMRC on or before 19 March, can be furloughed.

It may well be that employers have already taken action to terminate new recruits who, according to previous versions of the guidance couldn’t be furloughed. Employers still have the option to rehire these individuals and then furlough them, if they wish to do so.

2. Requirement for employer/employee agreement: the legislative underpin for the CJRS (the ‘CJRS Direction’) has now also been published and says that to be furloughed, the employer and employee must agree in writing that the employee will cease all work. This conflicts with the guidance, where the employer only has to confirm in writing that the employee has been furloughed, not that the employee has agreed to cease working. The best evidence of employee agreement is express confirmation from the employee that they agree to the furlough letter terms (which include the

Coronavirus: UK Job Retention Scheme – government fills in some gaps in the guidance

Summary

As an update to our 27 March blog “Coronavirus: UK Job Retention Scheme – further government guidance”, the UK government has revised its online guidance to provide more information on how the Coronavirus Job Retention Scheme (CJRS) operates. A number of points have been clarified, whilst some important issues have still not been addressed.

The following CJRS points have been clarified:

Who can be furloughed?

Clarifications on who can be furloughed include:

  • Terminated and rehired staff: employees who were terminated on or after 28 February, whether or not for redundancy, can be furloughed, providing the employer rehires them. Previously the guidance only talked about those who were made redundant;
  • Carers/shielding employees: employees who are unable to work from home because they have caring responsibilities, or because they are shielding in line with public health guidance, are expressly covered;
  • Insolvency: employees of a company which is in administration may be furloughed, although the government expects administrators to only access the CJRS if there is a reasonable likelihood of rehiring them; and
  • Non-employees: whilst we already knew that non-employees such as agency workers who are paid through PAYE could be furloughed, the updated guidance highlights that company directors and salaried members of LLPs are also covered, as are apprentices.

What elements of staff remuneration can be reclaimed?

  • Fees, commission and bonuses: previously the guidance said these aspects of remuneration could not be part of the remuneration that could be reclaimed. However, the guidance now provides that

Coronavirus: UK Job Retention Scheme – what we know so far from the UK government’s 20 March 2020 announcement

Summary

As an update to our earlier blog “Coronavirus – UK job retention scheme”, we have analysed the Retention Scheme announced by the UK government on 20 March 2020, based on the information released so far.

 

Analysis of the Coronavirus Job Retention Scheme (as at 20 March 2020) >

Coronavirus – UK job retention scheme

As an update to our earlier blog “Coronavirus – update on UK government measures in relation to employee absences and statutory sick pay”, set out below is a brief overview of the key measures that have, today, been announced by the UK government in relation to employees.

  • Employers will be provided with a grant to cover 80% of the salary (up to £2,500 per month) of employees who are not able to work, so that they can be furloughed, rather than dismissed. Employers can choose to top this up if they wish.
  • These grants will be backdated to 1 March 2020 and will be available for at least 3 months.
  • There will be no limit on the amount of funding under the scheme and the first grants are expected to be paid within weeks.
  • Additional measures have also been announced, including the business interruption scheme being interest-free for 12 months rather than 6 months, and VAT payments being deferred to the next quarter.

COVID-19 / Coronavirus: HR frequently asked questions in multiple jurisdictions

Summary

We understand that our clients and contacts will be addressing complex COVID-19 related HR issues in multiple jurisdictions. BCLP, together with our local counsel friends, have produced a global Q&A document covering 35 jurisdictions.

Please download our global Q&A document here.

The document covers the following questions:

  • What if an employee refuses to attend work due to fear of the coronavirus?
  • What if an employee refuses to undertake work travel to an ‘at risk’ area?
  • Can an employee be stopped from holidaying to an ‘at risk’ area?
  • If an employee is off sick due to the coronavirus are they entitled to sick pay?
  • What should we do if someone suffering from the coronavirus comes into the workplace?
  • What if the workplace needs to be closed?
  • Can an employee be required by their employer to ‘self-isolate’?
  • What physical measures should employers be taking?
  • How should employers deal with discriminatory behaviours?

If you have any questions that we have not covered, please contact any member of the team and we could be happy to help.

Coronavirus – Top 5 HR tips for UK employers

Summary

The outbreak of the coronavirus has created real challenges for businesses. From a people perspective, employers need to bear in mind both employment law and health and safety obligations.

Our top 5 HR tips are:

  • Restrict non-essential travel to high risk areas – for example, many UK employers at present operate a very restrictive policy on travel to mainland China, and strongly discourage non-essential travel to Asia in general.
  • Quarantine staff who have returned from specified infected zones for a period – for example, require staff to work remotely from home for a 14 day period following their return. If the nature of their role means they are unable to work remotely, the general principle is that employees who are ready and willing to work are entitled to continue to be paid. Note however that an employer’s obligations in this regard depend on the actual contractual employment terms in place.
  • Deal appropriately and sensitively with staff who refuse to come to work for fear of infection – employers should listen to concerns staff may have and look to resolve genuine issues constructively. Ultimately, however, employers are entitled to discipline staff who refuse to obey a reasonable management instruction to come to work.
  • Minimise disease transmission within the office – remind staff to maintain hygiene standards, and consider installing hygiene facilities such as hand sanitisers at exit and entry points and enhancing existing office cleaning services.
  • Deal with discriminatory behaviours – monitor complaints or grievances which could indicate discriminatory behaviour towards employees of Asian origin.
  • For more information

    Who is responsible for providing National Minimum Wage pay information in the context of a TUPE transfer?

    July 19, 2019

    Categories

    Employers are required, under the National Minimum Wage Act 1998 (“Act”), to maintain pay records and, if requested to do so, to produce such information to their workers.  A failure by an employer to comply with its obligation to produce pay information within 14 days of a request can result in an Employment Tribunal making a declaration and award against the employer of up to 80 times the national minimum wage rate.

    The Act expressly provides that in the event of a cessation of employment, the employee should seek such information from their former employer in respect of pay during that period of employment.

    In a recent decision, the Employment Appeal Tribunal (“EAT”) clarified that because an employee’s employment automatically transfers and does not terminate in the context of a TUPE transfer, where an employee TUPE transfers to a new employer (the transferee), it is that employer which has the obligation to provide pay records, not the employee’s former employer (the transferor).

    This decision highlights the need (particularly in the context of an outsourcing) for contractual obligations on a transferor to provide the transferee with all necessary information in relation to the transferring employees.

    The attorneys of Bryan Cave Leighton Paisner make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.