BCLP At Work

BCLP At Work

Employee Status

Main Content

Coronavirus: UK Job Retention Scheme – further government guidance

Summary

As an update to our earlier blog “Coronavirus: UK Job Retention Scheme – what we know so far from the UK government’s 20 March 2020 announcement”, please see below for further details.

Analysis of updated government guidance in relation to the Coronavirus Job Retention Scheme (as at 27 March 2020) >

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.

Extension of UK Off-Payroll Working Rules (often referred to as “IR35”) delayed to April 2021

Summary

The extension of the UK off-payroll working rules to private sector clients, due to take effect from April 2020, has been delayed by one year. This follows growing calls from businesses and business leaders given the difficult and uncertain times faced by many in light of the coronavirus pandemic. This is a huge relief for many contractors and businesses but it is just a postponement. The extra time should be used wisely to prepare for the changes; given the year-long extension it is unlikely that HMRC’s promise not to be ‘heavy handed’ on penalties during the first year of IR35 will stand.

The delay may, however, put some in a difficult position. If, in anticipation of the new rules coming into force, it has already been determined by a private sector client that a relationship would be one of employer/employee if the intermediary was not involved, the intermediary (in most cases the contractor’s PSC) should seriously consider operating PAYE and account to HMRC for employer/employee NICs and employee income tax accordingly. HMRC previously stated that it will not carry out targeted campaigns into earlier tax years where a client determines that a worker would be an employee if engaged directly by the client. However, HMRC may see things differently if a determination has been made in relation to the current working arrangements, in anticipation of the new rules coming into force, and that determination is now ignored. Some contracts may also already have been re-negotiated on the basis of

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

Summary

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

Our global Q&A document answers FAQs about HR issues arising from Coronavirus / COVID-19 across 35 jurisdiction including the United Kingdom, United States, Bulgaria, Hong Kong, Germany, Italy, Republic of Ireland, South Africa and Ukraine.

Download the HR Q&A to read about issues affecting your country >

We have written advice covering 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.

IR35 – 5 key milestones to ensure you’re ready for the new UK regime

Summary

With the revised IR35 (off-payroll working) rules coming into force in the UK for private sector employers in just a few weeks, are you ready for the new regime? Here are 5 key actions to benchmark your readiness.

Are you definitely in scope for the new IR35 rules?

‘Small’ companies can continue to operate the existing IR35 regime (obligation to assess IR35 status and account for tax/NICs falls on the Personal Service Company (PSC)), rather than apply the new regime which puts the obligation on the fee payer/client.

‘Small’ companies are those that satisfy at least two of the following requirements:

  • annual turnover not more than £10.2 million;
  • balance sheet not more than £5.1 million; and
  • not more than 50 employees.

If you are a subsidiary within a group, your parent company must also satisfy the small company test for the exemption to apply.

Have you mapped all your Personal Service Company (PSC) relationships?

This includes identifying both direct engagements with PSCs as well as those provided through an agency.

Have you set up robust processes to make consistent employment status determinations and appropriately communicate them?

The client (the recipient of the consultancy services) must take reasonable care determining whether the consultant would have been an employee if they were engaged directly. HMRC expects you to make a correct and complete determination, and preserve sufficient records to show how the decision was reached. Blanket assessments of a PSC population as a whole are unlikely to be

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

    UK HR Two Minute Monthly: philosophical belief; equal pay; sexual harassment

    Summary

    Our February 2020 update outlines key UK employment law developments from January. It includes cases on ethical veganism as a philosophical belief, equal pay and the difficulties in defending such claims, the impact of the drafting of the employment contract on territorial scope, the EHRC’s technical guidance on sexual harassment in the workplace with practical steps employers can take to tackle harassment, and the FCA’s letter on non-financial misconduct for wholesale general insurance firms. We also outline other points of note, including the draft Parental Bereavement Leave Regulations 2020 and changes to the ICO guidance on the timescales for complying with a data subject access request.

    Ethical veganism held to be a philosophical belief

    An employment tribunal has found that a belief of ethical veganism is a protected philosophical belief under the Equality Act 2010. The Claimant, a qualified zoologist and vegan since 2000, had worked in animal protection most of his working life. He adhered to the philosophy of the Vegan Society and exhausted all reasonable steps to ascertain whether a product or service complied with ethical veganism.

    The tribunal noted that “ethical veganism” is not just about choices in diet, but also choices relating to what a person will wear, the personal care products they will use, their hobbies and their jobs. The tribunal also referred to the definition provided by the Vegan Society, “A philosophy and way of life which seeks to exclude, as far as possible and practical, all forms of exploitation and cruelty to

    Mental health issues at work – #TimetoTalk Day

    February 6, 2020

    Categories

    Today is Time to Talk Day focusing on ending the stigma of mental ill-health in the workplace.

    Mental ill-health costs UK employers up to £42 billion annually due to poor productivity, sickness absence and staff turnover. With the number of stress and anxiety workplace-related cases increasing by over 37% just last year, this is a key topic for employers.

    Over the last several years there has been a growing recognition of the need for employers to proactively foster mental wellbeing in the workplace and of the benefits this can bring. This is a noticeable shift from the historic approach, which tended to focus more on dealing with the problems only after staff had gone off sick.

    #TimetoTalk encourages staff to have conversations about mental health so that they can be more open about the issue and can ask for support if they need it. This reflects key aspects of good practice that employers can adopt to foster good mental health and wellbeing, including:

    developing mental health awareness amongst staff by making information, tools and support accessible; destigmatising mental ill-health, for example via networks and support groups, and training up staff to spot the early signs of a mental health issue so that more targeted support can be provided were needed; and generally supporting staff in need, including offering professional help and where appropriate, making reasonable adjustments to the workplace. These developments can be seen as part of a wider ongoing strategy by the UK government to prevent

    UK HR Two Minute Monthly: religious discrimination; TUPE; IR35

    Summary

    Our first update of 2020 outlines key UK employment law developments over the last month. It includes cases on the definition of ‘employee’ under TUPE, the impact of a job evaluation survey in relation to equal pay, direct maternity discrimination, dress codes and religious discrimination, loss of privilege, and a recent tax tribunal decision on the application of IR35. We also outline other points of note, including the publication of the ICO’s new draft guidance on Subject Access Requests.

    Dismissal violated employee’s freedom of expression under Article 10 ECHR

    The European Court of Human Rights has held that that an employee’s right to freedom of expression under Article 10 ECHR was violated after he was dismissed for posting on a personal knowledge-sharing website.

    The employee described himself in his website blogs as an expert in HR management who worked at a large bank, but did not mention his employer by name.

    The employee argued that the termination of his employment breached his right to freedom of expression and appealed to the ECHR. The Court addressed four main questions when considering whether the right to freedom of expression had been infringed:

  • Nature of the speech – the Government argued that as the blog was only addressed to HR professionals (rather than to the public generally) Article 10 was not engaged. However, the ECHR noted that free speech does not only protect comments that demonstrably contribute to a debate on a public matter.
  • Motives of the author – in this case,
  • 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.