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Coronavirus (UK): detailed guidance published on the extended furlough scheme – key points for employers

In our blog on 5 November 2020, we flagged that further government guidance on the extended Coronavirus Job Retention Scheme (“CJRS”) would be provided on 10 November 2020. HMRC has now published that guidance.

Key details of the government guidance

The updated guidance includes the following key details:

  • During the period 1 November 2020 to 31 January 2021, the government furlough grant will pay 80% of wages for hours not worked up, capped at £2,500 per month. Employers will be liable for employer National Insurance contributions and employer pension contributions only. The government will review the terms of the scheme in January 2021 and may then require that employers make a contributions towards wages (as it did under the original scheme).  This is likely to be dependent on the state of the economy and the general prevalence of the virus.
  • The extended CJRS applies to employees who were employed as at 30 October 2020, as well as employees who were made redundant or stopped working on or after 23 September 2020, if they are then re-employed by their employer.
  • Employers can make a claim under the extended furlough scheme in relation to employees who have not previously been furloughed and claimed for, and there is no cap on the number of employees that an employer can claim for under the extended scheme.
  • The scheme is fully flexible – employers can furlough employees for any amount of time and any work pattern.
  • Any claims under the initial CJRS

Coronavirus (UK): further extension of the furlough scheme – key details for employers

The UK Chancellor of the Exchequer has, today, announced in Parliament, the extension of the Coronavirus Job Retention Scheme (“CJRS”) until the end of March 2021.

The scheme will continue to be on the terms as outlined in our previous blog on Monday until at least 31 January 2021, with the government grant at 80% of salary, capped at £2,500 per month. However, there will be a government review in January 2021 and it is possible that the government grant will, again, be reduced.

Full guidance on the CJRS extension will be published on 10 November 2020. The guidance on claims from February 2021 onwards will be published following the government’s review.

 

BCLP has assembled a COVID-19 Employment & Labor taskforce to assist clients with employment law issues across various jurisdictions. You can contact the taskforce at: COVID-19HRLabour&EmploymentIssues@bclplaw.com.

You can view other thought leadership, guidance, and helpful information on our dedicated COVID-19 / Coronavirus resources page

Key details for employers: second national coronavirus lockdown for England and extension of the furlough scheme

November 2, 2020

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On Saturday 31 October in the evening, the UK Prime Minister announced a second national lockdown in England and an extension of the Coronavirus Job Retention Scheme (“CJRS”).  The lockdown comes into force on Thursday 4 November 2020 and lasts until at least 2 December 2020.  Under the government’s current plans the CJRS will be extended until December 2020.

Key details of the changes

The key details of the changes to the extended CJRS that have so far been announced are as follows:

  • It is currently due to be extended until December 2020, presumably to coincide with the period of the national lockdown.
  • Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500. Employers will only have to bear the cost of National Insurance and employer pension contributions. This reflects the government’s more generous contribution when the scheme originally began to taper off.
  • To be eligible to participate in the CJRS, employees must have been on the payroll by 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before 30 October 2020.
  • Employees who participate in the extended CJRS do not need to have been furloughed before.
  • Employers need to report and claim for a minimum period of seven consecutive calendar days.
  • The Job Support Scheme, which was scheduled to come into force yesterday (1 November 2020), has been postponed until the CJRS ends.

Implications

UK HR Solutions: Changing terms and conditions

Welcome to the tenth and final post in our current series of hands-on guidance for UK HR professionals. In this series we’ve looked at common HR issues that you’ll encounter in the workplace and given you practical guidance on how to deal with them. Over the course of the series we’ve covered a variety of topics, such as how to handle grievances, disciplinaries, sickness absence, performance management and much more besides.

This week we look at changing terms and conditions.

Click here to read our guidance note on changing terms and conditions.

UK HR Solutions: Addressing Bullying and Harassment in the Workplace

Welcome to the next post in our weekly series of hands-on guidance for UK HR professionals. In this series we look at common HR issues that you’ll encounter in the workplace and give you practical guidance on how to deal with them. Over the course of the series we’re covering a variety of topics, such as how to handle grievances, disciplinaries, performance management, sickness absence and much more besides.

This is the first of two weeks where we focus on bullying and harassment. This time we give a brief overview of taking steps to prevent bullying and harassment, and how to manage an incident if it arises.

Read our Addressing Bullying and Harassment note >

UK HR Solutions: Suspending for disciplinary matters

Welcome to the next post in our weekly series of hands-on guidance for UK HR professionals. In this series we look at common HR issues that you’ll encounter in the workplace and give you practical guidance on how to deal with them. Over the course of the series we’re covering a variety of topics, such as how to handle grievances, disciplinaries, poor performance, sickness absence and much more besides.

This week we look at suspending employees in relation to potential disciplinary matters. Suspending someone should not be an automatic response to allegations of misconduct, but a carefully considered decision. The consequences of getting this wrong can be considerable.

Read our FAQs on when and how to suspend an employee for disciplinary matters

Coronavirus: HR impact of the economic statement by the UK Chancellor of the Exchequer

Following catastrophic falls in economic output during quarter 2, the UK Chancellor of the Exchequer has, today, made a ground-breaking economic statement setting out the UK government’s second phase of its economic response, which includes a significant effort to “protect, support and retain jobs”.Given that largescale unemployment would be a key factor in creating long term scarring for the economy, a key emphasis has been on reducing the number of unemployed as we emerge from the Coronavirus Job Retention Scheme (“CJRS”) at the end of October 2020.Set out below are the key points for employers:

  • Job Retention Bonus. To incentivise employers to bring furloughed employees back to work, the government will pay employers a bonus of £1,000 per employee on condition that following the end of the CJRS, they remain employed by their employer until at least January 2021, earning a minimum of £520 per month.
  • Kickstart Scheme. This scheme will provide new jobs to 16-24 year olds who are on Universal Credit.  The government will pay the national minimum wage of young people employed under this scheme for the first 6 months of their employment, subject to the job being a new one; salary being a national minimum wage or above and the role being for at least 25 hours per week.  There will be no cap on the number of places available under the scheme and participating employers will also receive £1,000 for administrative costs. It is estimated that this £2 billion scheme will see the creation of

Coronavirus: Approaching the fork in the road – anticipating UK redundancies

May 1, 2020

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There is no change yet, but an expectation that there will soon be a UK lockdown exit plan. By 7 May 2020 we may have a better idea how and when the lockdown will fall away. But no promises are being made.

Along with the possible easing of restrictions, there is also the end of the UK government’s job retention scheme. Furloughing will become a thing of the past. As it stands, the date for that is the end of June, although there are suggestions that, like the lockdown, there will be a gradual rather than cliff edge assignment of furloughing to history.

For some businesses it will mean a focus on managing within the workplace issues such as social distancing, testing and tracing. The direction for these businesses will be a return to a resemblance of normal.

For others, the direction will be acting on the permanent damage to the business or the sector in which it operates, and that means redundancies.

For many it will be a combination of the two.

The UK job retention scheme, as the name suggests, was intended to keep employees in jobs rather than them being made redundant during lockdown. It can hardly be a surprise that its end means that employees’ status will need to be reconsidered. To some extent that will depend on the permanent damage. To some extent it will depend on the speed and scope with which the lockdown is lifted. We can hope that the lifting of the

Holiday pay; non-party access to court documents

September 20, 2019

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Our September update considers recent key developments in UK employment law, including a case on calculating holiday pay for irregular workers and a Supreme Court decision on non-party access to court documents. We also outline other points of note, including developments relating to non-disclosure agreements and gender pay gap reporting.

Read more here

 

Unconscious Bias in the Workplace

April 11, 2019

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In 2019, discrimination is rarely overt or deliberate.  As a society we have come a long way from the ‘No Blacks, No Dogs, No Irish’ signs of decades past.  But conscious intent is not necessary for unlawful discrimination to occur.  We all have unconscious biases based on stereotypes and prejudices.  We may not always realise our biases, but we do need to be aware that biases related to protected characteristics such as age, sex and gender can give rise to unlawful treatment.

In the UK, under the Equality Act 2010, direct discrimination occurs where “because of a protected characteristic, A treats B less favourably than A treats or would treat others”.  In a discrimination claim, it falls to the Tribunal to consider the reason why the claimant was treated less favourably.  In other words, what was the conscious or subconscious reason for the treatment?  This requires the Tribunal to undertake an enquiry into the mental processes of the alleged discriminator.

As a reminder, the burden of proof lies initially with the claimant, and then shifts to the employer where the claimant shows a ‘prima facie’ case of discrimination.  If the claimant can establish a sufficient difference in treatment then there is likely to be a prima facie case of discrimination.  The alleged discriminator will then need to show a cogent reason for its actions.  Where there is no overt evidence of discrimination, the Employment Tribunal is entitled to draw inferences from the surrounding facts in order to conclude that unlawful

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