What should I pay my employees?

CORONAVIRUS JOB RETENTION SCHEME - ANNOUNCED 20.3.20

 

This scheme will allow all UK employers to access financial support to continue paying part of their employees salary for those employees that would otherwise have been laid off in this crisis.

 

  • The employer has to agree that an employee is on furloughed leave.
  • Do you want to place workers on furloughed leave?
  • You will need to designate affected employees as furloughed workers and notify your employees of this change.
  • Changing the status of employees remains subject to existing employment law and depending on the employment contract may be subject to negotiation.  Where the employment contract contains a right to remove work the employer can just notify, but most contracts will need agreement.
  • Once designated as furloughed workers the employer will need to submit information to HMRC about the employees that have been furloughed and about their earnings through a new online portal.
  • HMRC will reimburse 80% of furloughed workers wage costs up to a cap of £2,500 per month (can be backdated to 1 March 2020).
  • To qualify for the scheme employees should not undertake work for the employer while furloughed.
  • The employee will remain employed while furloughed, the employer can choose to fund the difference between the payment and the employees salary but does not have to.  So the employer can say you'll get the 80% that the Government is reimbursing us for but not the other 20%.  The significance of that is that if the employer chooses to withhold 20% of normal wages they've got to have a contractual right to do so.  So they will have to have the employees agreement (employees are very likely to agree to this offer if the alternative is redundancy or just not being paid).

Please think about lay-off or a shut down

NO

Have you got enough work?

YES

 

Please ensure that you have properly:

 

  1. laid off your employees; or
  2. invoked short time working; or
  3. dismissed short service employees

Please contact for advice

YES

Is your employee working their usual hours (either in the workplace or at home?

 

FULL PAY

 

Issue Working from Home Policy

YES

 

PAY AS VARIED

 

Ensure that you consult on varied pay subject to hours worked and issue written confirmation and Working from Home Policy

NO

YES

DO YOU WANT TO PLACE WORKERS ON FURLOUGH LEAVE?

NO

IS YOUR EMPLOYEE ABLE TO COME TO THEIR USUAL PLACE OF WORK?

Where an employee is absent due to Coronavirus Statutory Sick Pay is due from Day 1 if they meet the eligibility criteria of earning an average of £118 per week.

 

The Government have intimated that 14 days of SSP per employee will be recoverable, but this has not yet been legislated for.

 

Where 'symptoms' are stated, at the time of writing they are: a temperature of 37.8 degrees and upwards and/or a new or persistent cough.

 

Any isolation period stated may be subject to change.

GOV.UK CORONAVIRUS ALERT

New rules in force now: most staff must stay at home.

Is it due to childcare?

NO

Is it due to pregnancy or a serious underlying health concern?

NO

Is it due to your employee having symptoms of coronavirus themselves?

NO

 

UNPAID LEAVE

 

Only for as long as they cannot make other arrangements for the provision of childcare

YES

 

STATUTORY SICK PAY

 

A 12-week isolation period has been recommended and SSP is due from Day 1

YES

 

STATUTORY SICK PAY

 

A 7-day isolation period has been recommended form the day symptoms start and SSP is due from Day 1

YES

NO

Is it due to your employee's family member having coronavirus symptoms?

 

STATUTORY SICK PAY

 

A 14-day isolation period has been recommended and SSP is due from Day 1. If your employee starts with a symptom themselves revert to the red box.

YES

DISCIPLINE

Contact us for advice on disciplinary action, your employee should be at work.

NO

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