EMPLOYMENT LAW UPDATE

With the new financial year comes a number of changes to the landscape and practice of Employment Law in the United Kingdom.

Below are some of the changes/proposed changes to expect from 1 April 2023.

1. Increase in Minimum Wage

The National Living and Minimum Wage rates are set to increase from 1 April 2023. These rates provide employees with a statutory employment right to a wage not lower than that set by the Government.

As of 1 April 2023, the new rates will be as follows:

• National Living Wage – increase from £9.50 to £10.42 an hour;
• 21 – 22 year old – increase from £9.18 to £10.18 an hour;
• 18 – 20 year old – increase from £6.83 to £7.49 an hour;
• 16 – 17 year old – increase from £4.81 to £5.28 an hour; and
• Apprentices – increase from £4.81 to £5.28 an hour.

The changes also see an increase in the Accommodation Offset from £8.70 to £9.10 daily.

2. Increase in Statutory Benefit Payments

In addition to the increase in Minimum Wage, The Department of Work and Pensions have announced new rates for statutory maternity, adoption, paternity, and shared parental leave.

We will see an increase in the above payments from £156.66 to £172.48 a week as of 2 April 2023.

Statutory sick pay is also set to rise from £99.35 to £109.40 a week as of 2 April 2023.

3. Proposed new right to request a predictable work pattern

The Workers (Predictable Terms and Conditions) Bill is being supported by the Government and is set to create a Government commitment to provide a statutory right to workers and agency workers whose existing working patterns lack certainty (e.g. workers on zero hour contract or those with a fixed term contract of less than 12 months) to request a predictable work pattern.

An employee will be limited to a maximum of 2 statutory requests in a 12 month period.

Workers must first have worked for their employer for a set period before they make their application. This period will be set out in regulations, but it is expected to be 26 weeks (this does not need to be continuous). This same criteria will apply to agency workers who will be required to have worked for their hirer for at least 12 weeks continuously during the 26-week period.

4. Carer’s Leave Bill

The Carer’s Leave Bill has secured Government support and is now on its journey through the House of Lords. The Bill is set to provide employees who act in a carer capacity with a day one right to take one week’s unpaid leave a year for planned caring commitments.

5. Protection from Redundancy (Pregnancy and Family Leave) Bill

Under current rules, pregnant employees are protected from redundancy whilst on maternity or parental leave.  The Protection from Redundancy (Pregnancy and Family Leave) Bill seeks to extend this protection to apply to pregnant employees before they start maternity leave and after their return to work (for a period of 6 months). The new bill will also look to protect new parents returning to work from adoption leave/shared parental leave.

6. Neonatal Care (Leave and Pay) Bill

The new Neonatal Care (Leave and Pay) Bill is set to provide a statutory right for up to 12 weeks’ paid time off work for parents of newborn babies (up to the age of 28 days) who require neonatal care for a continuous period of 7 days or more. This will be in addition to other parental leave entitlements i.e. maternity, paternity and share parental leave.

7. Employment (Allocation of Tips) Bill

The Employment (Allocation of Tips) Bill is set to place a greater obligation on the employer and will look to require that all tips and service charges must be paid to workers without any deduction and by the end of the following month. This obligation is also set to extend the duty so that employers are to have a written policy in place regarding the allocation of tips to display transparency and fairness in distribution between workers.

8. Draft ‘Fire and Rehire’ Code of Practice

On 24 January 2023, the Government published a draft Code of Practice to provide guidance for employers in their dismissal and engagement procedures. The Code is set to ensure that employees have been provided information on any proposed contractual changes, that they have been consulted and that their employer has explored alternatives without the threat of dismissal.

If an employer fails to follow the Code, the Tribunal will take this into account and will be able to uplift an employee’s compensation by up to 25%.

If you are either an employer or employee and require advice on any employment law issues, please contact Hatchers Solicitors’ Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

The post Employment Law Update – Key changes from 1st April 2023 first appeared on Hatchers Solicitors.

1. EMPLOYMENT LAW UPDATEHatchers  quarterly newsletter contains the summary of the key developments in Employment Law during June, July, and August 2021.

   Mandatory Vaccinations

   The UK government have introduced regulations making vaccinations compulsory for care home staff from 11 November 2021.

   Staff employed by registered care homes (regulated by the Care Quality Commission) must therefore be fully vaccinated against Covid-19 by the above date, unless they are medically exempt.  The duty is cast extremely wide and will apply to all employees, volunteers, agency workers, tradespeople, hairdressers and beauticians that may carry out services for, or within the care home.

   Acas have recently released guidance for employers on supporting staff to get vaccinated, which can be found on their website: https://www.acas.org.uk/working-safely-coronavirus/getting-the-coronavirus-vaccine-for-work

   A judicial review claim has been filed by two care home staff challenging the above legislation on the alleged ground that it violates the European Convention of Human Rights.

   Coronavirus Job Retention Scheme (‘CJRS’)

   The Coronavirus Job Retention Scheme will end on 30 September 2021.

   For claims from 01 July to August 2021, employers must top their employees’ wages up to 80% of their wages (capped at £2,500) for the hours they are on furlough.

   For claims from August to September 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough. Employers must top their employees’ wages up to 80%.

   An employer’s final claim for furlough days must be submitted by 14 October 2021.

   Right to Work checks

   The UK government have extended the temporary Covid-19 measures for right to work checks to 05 April 2022.

   Employers will continue to allow checks to be carried out over video calls for job applications and existing workers.  These individuals are permitted to send scanned documents or a photograph to the employer rather than sending the originals.

   Case Law

   Several cases have been brought concerning claims for unfair dismissal and complaints in relation to Covid-19 measures and employment law practices (for example, Gibson v Lothian Leisure ET and Accattatis v Fortuna Group (London) Ltd).  A number of these cases involved employees raising concerns about the lack of Covid-secure workplace measures and turned upon whether the employer had taken reasonable steps to protect them or their family from the serious and imminent threat of coronavirus.  We can expect further case law development in this area.

   A handful of cases brought before the Employment Tribunal have centred upon whether furlough should be used as an alternative to redundancy and provided useful guidance to employers during the operation of the CJRS.  These cases have successfully argued that it may be unfair if furlough is not considered as an alternative to redundancy, or a good explanation is not provided as to why furlough was rejected and cannot be provided to an employee.

   Finally, a member of the public, who is profoundly deaf and visually impaired, has successfully brought a discrimination claim against the Cabinet Office.  As a service provider, the Cabinet Office had a duty to make reasonable adjustments under the Equality Act 2010, however they were found to have failed to comply with this duty as they did not provide a BSL interpreter for live briefings which were intended to engage the involvement and understanding of the public.

   Disclaimer:

   The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.  The partners of Hatchers Solicitor LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.  The content of this Newsletter is copyright and cannot be reproduced.

   For further information on current employment legislation and/or to be added to our mailing list, please contact Hatchers Solicitors Employment Law Team on 01743 248545.  

The post Employment Law Update – 29 September 2021 first appeared on Hatchers Solicitors.

Employment Law – ‘Spotlight Edition’ for August 2021

Last month saw the removal of all restrictions within England and a number of legislative changes in the aftermath of ‘Freedom Day’.  For our second spotlight issue we have focused upon a significant change coming to the care home sector due to the heightened risk of severe symptoms following a Covid-19 infection and the risk of outbreaks in these closed settings.

Covid-19 vaccinations to be mandatory for staff working in care homes in England

The UK government has introduced regulations making vaccinations compulsory for care home staff from 11 November 2021.

Staff employed by registered care homes (regulated by the Care Quality Commission) must therefore be fully vaccinated against Covid-19 by the above date unless they are medically exempt.  The duty is cast extremely wide and will apply to all employees, volunteers, agency workers, tradespeople, and hairdressers and beauticians that may carry out services for or within the care home.

The regulations are designed by the government to ensure that care home residents are safeguarded and better protected from the risk of death and serious illness that may arise from the transmission of Covid-19 (particularly within a high-risk environment).

Commentary

The government have allowed a ‘grace’ period to allow any staff members, agency works, tradespeople etc. who are engaged by a care home to become fully vaccinated.  However, this does not leave sufficient time for provides to prepare or to implement new policies and procedures for those staff who will not have received both vaccines by 11 November 2021.

Providers may wish to consider redeployment or temporary cessation of duties within the workplace should a member of staff not be fully vaccinated.  To cover all bases, providers should also be considering whether their disciplinary policies and practices are compliant with current practices, and that they are strictly followed in the event a staff member refuses to receive a vaccination against Covid-19 (only after all matters in each circumstance have been carefully considered).

It is highly recommended that any discussions with staff should take place as soon as possible so that resolutions can be reached, and all members of staff, and those engaged by the care home, are well aware of their duties and obligations.

For further information or advice on the above employment law rights, please contact Hatchers Solicitors.

Disclaimer:

The content of this article is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.  The partners of Hatchers Solicitor LLP and the writer of this article will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this article.  The content of this article is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post August 2021 – Spotlight on Employment Law first appeared on Hatchers Solicitors.

Employment Law – ‘Spotlight Edition’ for July 2021

For our first spotlight edition we have focused upon two topical employment tribunal cases which have been decided in June 2021.  On the face of it, the two cases appear similar as they each concern claims for unfair dismissal and contain complaints in relation to COVID-measures.  The outcome in each case was different, with one party being successful and the other unsuccessful, however they demonstrate the types of considerations being taken into account by the employment tribunal when determining claims brought during the pandemic.

Claimant was unfairly dismissed for raising concerns about lack of COVID-secure workplace measures

Gibson v Lothian Leisure ET (Employment Judge Brewer). 

The facts

The claimant, Mr Gibson, was employed by Lothian Leisure (LL) as a chef from February 2019.  LL was faced with lockdown in March 2020 and as a result of the pandemic, its restaurant closed temporarily.  Mr Gibson was placed on furlough at this time.

Mr Gibson’s father had a number of medical issues meaning that he was clinically vulnerable and required to shield during the lockdown.

Whilst on furlough, LL contacted Mr Gibson requesting his return to work to undertake a few jobs before the lockdown period came to an end.  Mr Gibson raised concerns at this time that his comings and goings to work meant his father could catch Covid 19.  LL was not offering to provide any personal protective equipment for staff and they had no intention of requiring staff to take precautions and create a Covid secure working environment.

LL’s response to Mr Gibson’s concerns was robustly negative, and he was told to “shut up and get on with it”.

With no prior discussion or consultation, Mr Gibson’s employment was terminated summarily by text message on 30 May 2020.  LL’s evidence was that they were changing the formatting of the business and would need a smaller team going forward.  Mr Gibson received no notice pay and no pay for accrued untaken annual leave.

Mr Gibson brought a claim against LL for unfair dismissal, notice pay, holiday and unlawful deduction of wages.

Grounds for automatic unfair dismissal

Certain reasons for dismissal can be described as ‘automatically unfair’, meaning that if one of these reasons is established by a  claimant, the employment tribunal must find the dismissal unfair.  Consideration of the reasonableness for the dismissal is irrelevant, and instead, tribunals will focus on whether the prohibited reason was the reason or principal reason for dismissal.  The burden is upon the claimant to show an automatic unfair dismissal and that there was a comparator employee who was not dismissed.

Section 100 of the Employment Rights Act 1996 provides that a dismissal for a prohibited health and safety reason is automatically unfair.  Protection against dismissal will be given to an employee who takes (or proposes to take) certain action to protect themselves from danger in the workplace which they reasonably believe exists is serious and imminent under section 100 (1)(e).  There is no qualifying length of service.

Serious and imminent danger

‘Serious and imminent’ is a question of fact and will vary from case to case, however it will involve liability or exposure to harm or injury (the danger does not need to be life-threatening).

On 14 February 2020 the Secretary of State for Health and Social Care declared that the incidence or transmission of coronavirus constitutes a serious and imminent threat to public health.

In the above case, the circumstance of danger was the increase of infections by the Covid 19 virus and the potential significant harm that could be done to Mr Gibson’s father.  Mr Gibson reasonably believed this to be serious and imminent, causing him to raise the issue of personal protective equipment.

The tribunal found that Mr Gibson had taken appropriate steps to protect his father from the danger as a result of raising his concerns.  Alternatively, Mr Gibson had been unfairly selected for redundancy because he had taken appropriate steps to protect his father.  Prior to raising his concerns, Mr Gibson had been a valued member of staff with no prior problems.

Claimant was not unfairly dismissed after expressing concerns about commuting, attending the office during lockdown, and asking to be furloughed

Accattatis v Fortuna Group (London) Ltd (Employment Judge Alliott)

The facts

Mr Accattatis was employed by Fortuna Group (London) Ltd (FGL) as a sales and project marketing co-ordinator from May 2018.  FGL sell and distribute personal protective equipment and were therefore incredibly busy from March 2020 due to the global pandemic.

Prior to March 2020, the tribunal found there had been an undercurrent of antagonism between the two parties, however Mr Accattatis’ work performance was good.

During March and April 2020, Mr Accattatis repeatedly asked to work from home or be placed on furlough as he felt uncomfortable using public transport and/or working in the office (he was not a vulnerable person).  Mr Accattatis lived approximately 5 miles from the office and ordinarily travelled to work by bus as he had no car or other means of transport.

FGL told Mr Accattatis that his job could not be done from home as he was required on the premises for deliveries, and that furlough was not possible due to the high demand of PPE.  FGL offered paid leave as part of their holiday entitlement or unpaid leave should staff want to self-isolate.  Mr Accattatis did not accept this and asked three more times to be furloughed.

On 21 April 2020, Mr Accattatis was dismissed by email.  He did not have sufficient service to claim ordinary unfair dismissal but instead alleged that he had been automatically unfairly dismissed for having taken steps to protect himself from serious and imminent danger (see above ‘grounds for automatic unfair dismissal’).

Appropriate steps

The tribunal found that Mr Accattatis was a key worker whose job could not be done from home, however they acknowledged that the incidence or transmission of coronavirus constitutes a serious and imminent threat.  This, together with Mr Accattatis’ emails expressing concerns about commuting and attending the office, showed he reasonably believes there were circumstances of serious and imminent danger.

However, the tribunal then went on to consider whether Mr Accattatis took or proposed to take appropriate steps to protect him or other persons from the danger or took steps to communicate these circumstances to FGL by appropriate means (as is required under section 100 (e) of the Employment Rights Act 1996).

FGL had reasonably concluded that Mr Accattatis’ job could not be done from home and that he did not qualify for furlough but had instead suggested taking holiday or unpaid leave. Mr Accattatis’ response was not only that he wanted to stay at home (which was agreed), but also to demand that he be allowed to work from home (on full pay) or be furloughed (on 80% of pay). These demands were not appropriate steps to protect himself from danger, so his claim failed.

Commentary

Although the above cases are not binding, they are a stark reminder that the pandemic may or may not justify a refusal to attend work under section 100(1)(e) of the Employment Rights Act 1996.  Key considerations for tribunals will be whether the employer has reasonably tried to accommodate the employees’ concerns (and reduce the transmission risk) and/or whether the employee took appropriate steps to protect him/herself from danger.

For further information or advice on the above employment law rights, please contact Hatchers Solicitors Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

Disclaimer:

The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.  The partners of Hatchers Solicitors LLP and the writer of this article will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this article.  The content of this article is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post July 2021 – Spotlight on Employment Law first appeared on Hatchers Solicitors.

A collection of important developments within Employment Law during May 2021.

1. Coronavirus: Spring 2021

The government has released a ‘roadmap’ to ease coronavirus related restrictions and to bring the UK out of lockdown.  The following changes are anticipated to take place, however they will be dependent upon the number of coronavirus cases in the UK and upon sustaining the NHS:

• From 17 May: 6 people or 2 households may meet indoors.  Outside meetings of less than 30 will be allowed.  Indoor hospitality venues will reopen, however customers will have to order, eat and drink while seated.  Up to 30 people may attend weddings, receptions and funerals.  Individuals may be able to travel abroad.
• From 21 June: All legal limits on social contact will be removed. Remaining commercial premises will be reopened, such as nightclubs, and large events / performances will be allowed. This has now been delayed for 4 weeks, until 19 July 2021.

2. Tips for Businesses Reopening

Acas have published five helpful tips for businesses reopening from 17 May 2021.  These are:

• Make sure the workplace is COVID-secure, including completing a COVID-19 risk assessment. In addition, staff should be involved in decision-making and kept informed of any changes.
• Plan ahead with staffing, for example, by considering how many workers need to attend the workplace each day, and how start and finish times can be staggered to help staff avoid busy commuting travel times. In addition, consider how to reintegrate furloughed staff into the workforce.
• Talk to staff about plans, arranging early conversations with them and listening to any concerns they may have about returning to the workplace. Employers are encouraged to be flexible where possible and seek to resolve any staff concerns.
• Think about staff health and wellbeing, for example, by learning what the signs of mental ill health may be, and tailoring management and support to individual workers.
• Have regard to employment rights, by ensuring compliance with the National Minimum Wage (which increased in April 2021), allowing workers to take their accrued holiday entitlement, and making reasonable adjustments for disabled workers.

3. Order made extending health and safety detriment protection to workers from 31 May 2021

From 31 May 2021, the rights under section 44(1)(d) and (e) of the Employment Rights Act 1996 (ERA) not to be subjected to a detriment in certain health and safety cases will be extended to workers.

4. Right to Work checks

Employers may continue to carry out checks over video calls, and job applicants may send scanned copies of their identity documents as an alternative to providing the originals.

Employers will also not have to carry out retrospective checks during the extended period.

5. Was it fair to dismiss an employee for refusing to agree changes to her employment contract during the pandemic?

Employment Tribunal Judge Morris rules no in Khatun v Winn Solicitors Ltd ET/2501492/2020.

The claimant had declined to agree to a variation to the terms of her employment contract, which her employer had stated was necessary in the interests of their business.  The changes included an agreement to go into furlough or accepted reduced hours and salary level.  There were to be no immediate changes other than working from home and the claimant was told that the position was non-negotiable.

The claimant did not dispute the reason for her dismissal, however, she claimed that her employer had not acted reasonably in all the circumstances in treating it as a sufficient reason to dismiss her.

Tribunal Judge Morris agreed with the claimant and found that whilst her employer had sound business reasons for their decision to seek a contract variation and a potentially fair reason for the claimant’s dismissal, the dismissal itself was not within the band of reasonable responses of a reasonable employer in the circumstances.

When determining the case, Judge Morris considered relevant factors ‘including the fairly significant size of the response and its administrative resources; the unprecedented times; and the genuine need to preserve the respondent’s business for when it emerged from the effects of the pandemic’.

Through our newsletters, we will provide updates on the key developments in Employment Law.  For further information or advice on any of the above employment law developments, please contact Hatchers Solicitors Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

Disclaimer:

The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.  The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.  The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post June 2021 – Key Employment Law developments first appeared on Hatchers Solicitors.

1. Coronavirus: Spring 2021

The government has released a ‘roadmap’ to ease coronavirus related restrictions and to bring the UK out of lockdown.  The following changes are anticipated to take place, however they will be dependent upon the number of coronavirus cases in the UK and upon sustaining the NHS:

• From 12 April: non-essential retail, personal care premises, public buildings and indoor leisure facilities will reopen. Outside hospitality venues will also reopen and will be allowed to serve people outdoors.  There will be no curfew or requirement for a substantial meal in order to buy alcoholic drinks.
• From 17 May: 6 people or 2 households may meet indoors.  Outside meetings of less than 30 will be allowed.  Indoor hospitality venues will reopen, however customers will have to order, eat and drink while seated.  Up to 30 people may attend weddings, receptions and funerals.  Individuals may be able to travel abroad.
• From 21 June: All legal limits on social contact will be removed. Remaining commercial premises will be reopened, such as nightclubs, and large events / performances will be allowed.

Returning to work

Employers must continue to ensure that the workplace is ‘Covid-secure’ and demonstrate robust strategies for managing the risk of transmission.  Employers should regularly review their health and safety policies and carry out appropriate risk assessments to safeguard against any risks.  Government guidance should also be followed to demonstrate that an employer is satisfying their legal obligations.

To tackle the transmission of Covid-19 and produce a safe environment during the pandemic, employers should:

• keep infected staff out of the workplace i.e. by testing employees;
• follow strict hygiene rules; and
• enforce social distancing rules and ventilation.

Workplace testing and vaccinations

It is not mandatory for employers to test their staff, however they may wish to introduce testing into their workplace policies and procedures for those employees who cannot work from home.

Businesses of all sizes can now register to order lateral flow tests for their workers.

The Advisory, Conciliation and Arbitration Service (Acas) has released new guidance on workplace testing for Covid-19 which employers may find interesting and may wish to consider.  The guidance can be found at https://www.acas.org.uk/working-safely-coronavirus/testing-staff-for-coronavirus and includes helpful information and practical tips on how the tests should be carried out and what employers will need to do with test results.

Acas has released a similar piece of guidance in relation to getting the coronavirus vaccination at work and how to support workers during this time, in particular, how to deal with workers who are refusing to be vaccinated. The guidance can be found at https://www.acas.org.uk/working-safely-coronavirus/getting-the-coronavirus-vaccine-for-work.

Data protection

If an employer plans on carrying out workplace testing and collecting information on staff who have been vaccinated, they will need to consider and assess their data protection policies and how they plan on collecting the data.  The collection and recording of data (processing) will need to be carried out in accordance with the UK’s data protection laws.

Particular care will need to be given as the information being processed relates to an individual’s health and may therefore be classed as ‘special data’.  The UK data protection laws set out heavier burdens where ‘special data’ is being processed.

Businesses must ensure they are adhering to the 7 principles of the UK GDPR, in particular, personal data should be processed lawfully, fairly and in a transparent manner in relation to individuals.   Employers will also have to justify the introduction of any policies and use of personal data, which will depend on each workplace, the role and any particular risks of the job.

2. The Department of Health and Social Care consults on mandatory vaccinations for staff in care homes with older adult residents

A 5-week consultation has been launched looking at requiring care home providers who are caring for older adults to deploy only those workers who have been vaccinated against Covid-19.  Care home workers are already being encouraged to have a vaccine to keep themselves and those they care for safe.

Local authorities have begun implementing a vaccination rate which care home providers must meet to provide a minimum level of protection.  For example, SAGE (a social care working group) have advised that 80% of staff and 90% of residents need to be vaccinated where older residents are being cared for.  At present, only 53% of older adult homes in England are meeting this threshold.

Should the consultation result in a mandatory policy, staff who are medical exempt will not be required to be vaccinated.

3. Limit on tribunal awards to rise

The following new figures will apply for certain dismissal claims where the effective date of termination falls on or after 06 April 2021:

• The limit on a week’s pay will rise from £538 to £544;
• The maximum compensatory award for unfair dismissal rises from £88,519 to £89,493; and
• The minimum basic award for certain unfair dismissals (including health and safety dismissals) rises from £6,562 to £6,634.

The changes are laid out in The Employment Rights (Increase of Limits) Order 2021.

If you are either an employer or employee and require advice on any of the above, please contact Hatchers Solicitors’ Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

The post Employment Law Update – 14 May 2021 first appeared on Hatchers Solicitors.

Central Changes to the Job Support Scheme

Background

Chancellor Rishi Sunak has this week announced important changes to the Job Support Scheme which the Government hopes will provide additional support to workers and businesses throughout the UK in comparison to the original proposals.  The support comes as part of Mr. Sunak’s ‘Winter Economic Plan’ to save viable jobs and stabilise the economy.

The original Job Support Scheme was unveiled at the end of September as the replacement to the current Coronavirus Job Retention Scheme which ends on 31 October 2020.

The Changes

The previous Job Support Scheme proposals provided that the employee must be working at least 33% of their hours for the scheme to apply.  If the scheme applied, the employee would expect to receive up to 77% of their ordinary wage, with the unworked proportion being paid for by their employer and the Government.  22% would go unpaid.

The new scheme (Job Support Scheme (open)) will now apply where the employee is working at least 20% of their hours.  The wage contributions have also been altered.  The employer will be responsible for payment of the employee’s wage for the time worked as before, however the Government will now contribute up to 49% of the employee’s wage for the time not worked.  The employer will also pay an additional 5% of the employee’s wages for the time not worked.  In total, 27% of the employee’s wages will go unpaid.

An employee should therefore expect to receive up to 73% of their wages under the new Government proposals where the employee earns up to £3,125 per month.

In addition, the new Job Support Scheme will offer cash grants of up to £2,100 per month for business largely within the hospitality, accommodation and leisure industries, which are located within high-level alert areas.  These grants are to be administered by local councils.

Job Support Scheme (closed)

Mr. Sunak has announced no new changes to the ‘Job Support Scheme (closed)’ or ‘Lockdown Furlough’.  They will continue to contribute 67% towards employees’ wages in the event a business is located within ‘Tier 3’ and has been required to close as result of coronavirus restrictions and measurements.  The employee must be working zero hours to be eligible under this scheme.

The below chart from the Guardian shows the differences between the ‘updated’ Job Support Scheme, the old Job Support Scheme, the Local Furlough Scheme (Tier 3 Lockdown) and the original Furlough Scheme.

If you are either an employer or employee and require advice on the above or the Job Support Scheme please contact Hatchers Solicitors’ Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

Disclaimer:
The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.
The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.
The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post Employment Law Update – Central Changes to the Job Support Scheme – updated 23rd Oct 2020 first appeared on Hatchers Solicitors.

An Overview of the ‘Job Support Scheme’ and ‘Local Furlough Scheme’

Background

Chancellor Rishi Sunak has announced a new Job Support Scheme which is intended to replace the current Coronavirus Job Retention Scheme when it ends on 31 October 2020.  The Job Support Scheme aims to provide continued financial support and assistance to workers who cannot fully perform their job, with a view that it may help prevent mass redundancies throughout the UK.

As it stands under the Coronavirus Job Retention Scheme, the employer is responsible for paying up to 20% of the employee’s wages; with the remaining 60% of wages being paid for by the Government.

The Job Support Scheme will alter the percentage of employee’s wage support and contributions being received by the Government and their employee.

When will the Scheme be introduced?

The Job Support Scheme will begin on 1 November 2020.  Rishi Sunak has announced that the introduction of the scheme is to protect viable jobs as part of his ‘Winter Economic Plan’, and will therefore continue until April 2021.

Key Features

The employee must be working at least 33% of their hours for the scheme to apply.  The employer will be responsible for payment of the employee’s wage for the time worked.  The Government will then contribute up to 22% of the employee’s wage for the time not worked.  The employer will also pay up to an additional 22% of the employee’s wages for the time not worked.   Up to 22% will go unpaid.

An employee should therefore expect to receive up to 77% of their ordinary wage, where there is no cap applied.

The Job Retention Bonus of £1,000 per furloughed employee still employed on 31 January 2021 is unaffected by the Job Support Scheme.

Local Furlough Scheme

Rishi Sunak has also announced the implementation of a new ‘Local Furlough Scheme’ or “Lockdown Furlough”, which is being used to expand the Job Support Scheme in order to protect jobs and support businesses required to temporarily close as a result of coronavirus measures and restrictions.

The Local Furlough Scheme will most likely apply to businesses located within tier 3 of the Government’s new three-tier system.  The system was designed to allocate levels of risk to areas across England.  Those areas which are located within tier 3 are “extremely high risk” and will have stricter measures put into place by the Government, which will likely include closures of businesses such as pubs, gyms and restaurants.

The Government has announced that if your business must close as a results of coronavirus measures then they will contribute 67% towards employees’ wages, up to a maximum of £2,100 per month.  The employee must be working zero hours to be eligible.

Cash grants for businesses required to close in local lockdowns will also increase by up to £3,000 per month.

The below chart from the BBC shows the differences between the original Furlough Scheme, the Local Furlough Scheme and the Job Support Scheme.

Moving Forward

Coronavirus has no doubt caused both financial and emotional stress for employers and employees.  Whilst the Government continue to provide support, the likelihood of job losses and permanent business closures is a gloomy reality for the UK.

If you are either an employer or employee and require advice on the above or the Job Support Scheme please contact Hatchers Solicitors’ Employment Law Team on 01743 248545 or mail@hatchers.co.uk.

Disclaimer:
The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.
The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.
The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post Employment Law Update – An Overview of the ‘Job Support Scheme’ and ‘Local Furlough Scheme’ – 16th Oct 2020 first appeared on Hatchers Solicitors.

COVID-19 JOB RETENTION SCHEME – update 12th May 2020

Employers may have heard that the Chancellor Rishi Sunak has announced today that the Coronavirus Job Retention Scheme will be extended for four months until the end of October 2020.

There will be no changes to the Scheme until the end of July, and beyond that (from August to October 2020), the Scheme will allow furloughed workers to return to the workplace part-time with costs being shared between the employer and the Scheme.

Mr Sunak has said that details will be published by the 31^st May.

If you are either an employer or employee and require advice on the above or the Coronavirus Job Retention Scheme contact Hatchers Solicitors’ Employment Law Team on 01743 248545.

Disclaimer:
The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.
The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.
The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post Employment Law – COVID-19 JOB RETENTION SCHEME – update 12th May 2020 first appeared on Hatchers Solicitors.

“Furlough Leave” – The Coronavirus Job Retention Scheme – update re Annual leave 09.04.2020

Annual Leave Update

In our earlier Newsletter of 6^th April, we explained that the interaction between annual leave and furlough leave was at that time still unclear.

We know that whilst on Furlough leave employees will continue to accrue holiday in the normal way, but the un-answered question is whether they can take it (or be placed on it).

One concern arising from this is whether HMRC would take the view that an employee taking a period of holiday leave during furlough leave meant that any three-week period of furlough leave was interrupted (meaning that furlough payments would not be granted to the employer for the relevant period)

Do we have clarification on this point?

First, a potential answer from HMRC appeared on Twitter earlier this week!

Its Customer Support Team earlier this week stated (in answer to a question on the above issue) that:

‘If an employee is on holiday or has a scheduled Bank Holiday while on furlough, they are entitled to still receive this holiday. Employers must ensure that any employee on holiday or a Bank Holiday is paid their full salary for that period of holiday.’

In addition, HMRC customer support team stated that the Coronavirus Job Retention Scheme ‘will only pay for the furlough paid, everything else is to be paid by the employer‘.

In other words, the employer must pay the difference between the furlough pay and full pay that difference being 20%.

Second, updated ACAS Guidance states:

‘If an employee or worker is temporarily sent home because there’s no work and the employer intends to claim for their wages under the Coronavirus Job Retention Scheme (‘furloughed’), they can still request and take their holiday in the usual way. This includes bank holidays.

Employees and workers must get their usual pay in full, for any holidays they take.’

Employers will have to ensure that they calculate an employee’s normal salary correctly to ensure that any individual taking holiday leave is not underpaid bearing in mind that latest HMRC Guidance on The Coronavirus Job Retention Scheme is now clear that normal salary can include overtime, allowances, compulsory commissions and bonuses.

Despite the above, it is advisable that employers await definitive updated Guidance from HMRC on The Coronavirus Job Retention Scheme regarding the relationship between holiday and Furlough leave.

If you are either an employer or employee and require further advice on the effects of COVID-19 contact Hatchers Solicitors’ Employment Law Team on 01743 248545.

Disclaimer:
The content of this Newsletter is descriptive of its subject matter only and must not be relied upon as providing specific legal advice.
The partners of Hatchers Solicitors LLP and the writer of this Newsletter will not, except as required by law, be liable for any loss or damage arising from reliance on any information provided in this Newsletter.
The content of this Newsletter is copyright and cannot be reproduced in any form without the prior written agreement of Hatchers Solicitors LLP.

The post Employment Law Update – “Furlough Leave” – Annual Leave update 09.04.2020 first appeared on Hatchers Solicitors.