New laws on SSP and Annual leave

Emergency legislation promised by the Government on extending sick pay has now been passed.

The Statutory Sick Pay (Coronavirus) (Suspension of Waiting Days and General Amendment) Regulations 2020 came into force on 28 March 2020.

These Regulations remove the need for employees to serve three waiting days before they become eligible for statutory sick pay meaning that it is now payable from day one, rather than day four, where the reason for the absence is coronavirus sickness or self-isolation. The Regulations include a back-dating provision, so that any periods of incapacity which started on or after 13 March 2020 will no longer serve waiting days.

Other eligibility criteria have not changed, meaning that workers still need to earn at least the lower earnings limit on average, which is currently £118 per week but will increase to £120 per week from 6th April 2020.

In addition, the Working Time Regulations 1998 have been amended to allow for more flexibility when dealing with annual leave remaining in this leave year. Due to circumstances, workers may struggle to take their remaining entitlement before the end of the leave year. This may be because:

  • they’re self-isolating or are too sick to take holiday before the end of their leave year
  • they’ve been temporarily sent home as there’s no work (‘laid off’ or ‘put on furlough’)
  • they’ve had to continue working and could not take paid holiday

The Regulations now give workers a statutory right to carry leave over into the next two leave years after this one. This only applies to the first 4 weeks of leave under the Regulations (Regulation 13 leave). The other 1.6 weeks of statutory minimum leave is already capable of being carried over to the next leave year with agreement from the employer and the new laws do not change this. This means that all statutory minimum annual leave accrued in this leave year is now capable of being carried over, in the following way:

  • 4 weeks (legal entitlement to be carried over to next two leave years)
  • 1.6 weeks (employers can agree that this be carried over to the next leave year)
  • Enhanced contractual entitlement (at employers’ discretion)

The rules on pay in lieu of untaken annual leave have also been amended so that, when employment terminates, the holiday pay payable will include anything carried over and not taken due to the coronavirus carry over. The law still does not allow pay in lieu of statutory minimum entitlement at any time other than termination.

IR35 Postponed Coronavirus

IR35 Postponed in The Wake of Coronavirus Outbreak

Many will be breathing a sigh of relief after a year long delay has been announced to the roll-out of the private sector off-payroll rules.

This controversial change has been postponed as response to the Coronavirus.

In the House of Commons yesterday, Steve Barclay, the chief secretary to the Treasury, said that the IR35 changes that were due to come into force at the start of April 2020 are to be pushed back for a year and begin in April 2021. “This is a response to the ongoing threat of Covid-19 as a way of helping businesses and individuals” he said.

He also added that it was not to be confused with a cancellation and that the Government will remain committed to reintroducing the policy to ensure that people working like employees, in their own limited companies, pay the same tax as those who are employed directly.

Long before the postponement was announced, employers, recruiters and freelance groups had been calling for a delay, so it comes as a welcomed announcement.

The CEO of Morson Group, Ged Mason said that the delay has come at a “Poignant time” for UK industry. He said “Many businesses that rely on flexible talent and contractor populations will take a sigh of relief”

IR35 states that if a contractor is to carry out the same work, or similar work to a permanent staff member, the employer is required to take income tax and NI contributions like they were an employee. The new legislation was introduced to make sure that workers that undertake similar roles are paying the same tax amounts regardless of whether they were an employee or a contractor.

The changes will shift the responsibility of assessing which of the contractors come under this category to employers. These changes have applied to the public sector employers since 2017.

Head of the legal services department at Brookson Group, Matt Fryer, said “The delay will allow businesses that have not yet prepared for the change, more time to take action” “Hopefully some of the businesses that have implemented knee-jerk blanket bans on contractors will now have the time to reconsider this as their strategy for ensuring access to flexible expertise.”

He also added that employers should now have a clearer understanding and guidance from the HMRC than when the initial date for the rollout was set. ” Those end hirers that have invested in getting IR35 right are going to be well prepared for April 2021 and can now use this next year to consider how to accommodate for roles currently thought to be inside the regulations of IR35.

“We would advise businesses that do work with contractors to build IR35 compliance into their planning for the next financial year. Bearing in mind that it has taken many companies 6 months to prepare for the initial deadline”

Chief executive of the FCSA, Julie Kermode has said the delay would enable businesses to focus more on the immediate complexities of responding to the Coronavirus. Which is priority. ” I very much hope that some detailed analysis of the wider implications of this reform can be undertaken in the next few months in order to establish whether or not it should be scrapped entirely.”

The operations director at APSCo said “Many companies have already spent a large amount of their time and effort preparing and planning for the changes” “Nonetheless, many in the staffing and recruitment sector will welcome the change” “Now’s not the time to make flexible labour more expensive or the hiring of contingent labour more difficult, when our sector is facing unprecedented times.”

She also added that the delay could kick start the hiring of remote workers who operate through personal service companies, noting that some employers have had to put a blanket ban on using contractors as their response to the changes in IR35.

Andy Chamberlain the director of policy at IPSE also welcomed the delay. He said it was a “sensible step” to limit damage to self employed. “It’s right and responsible to delay the changes during the coronavirus, this will reduce the strain and income loss for self-employed businesses”

Chamberlain called on the government to do more to protect the income of the contractors. He said “They must create an emergency income protection fund to keep the UK’s crucial self employed businesses afloat”

 

 

Brexit

On 23 June 2016 the UK voted to leave the European Union. A majority of the population voted to Leave, rather than Remain, triggering the start of preparations for the UK withdrawing.

The governments commitment to protecting workers rights following Brexit was reiterated by The Prime Minister using the 2016 Queen’s Speech.

Whilst it is not yet clear what changes there may be to employment law, or when any changes will happen, it is almost certain that there will be some changes. One area that we know will see change is the rights of EU nationals to work in the UK.

The date when the UK is expected to leave the EU (originally the 29 March 2019) was delayed to 31 October 2019. However, this was since delayed again until 31 January 2020, and, on this date, the UK officially left the EU.

Although a withdrawal agreement was successfully negotiated and passed by both the UK and EU Parliament, a transition period is now in place until December 2020 to work out future trade agreements with the EU. Although an extension of this period could potentially happen if necessary, Prime Minister Boris Johnson affirmed in the 2019 General Election that no further extensions to the Brexit process would occur.

Brexit and the coronavirus

There has been no confirmation as yet as to if the 2020 coronavirus outbreak will serve to delay the Brexit transitional period, which is set to end on December 31 2020. However, negotiations between the UK and the EU have been pushed back as all countries work to respond to the developing coronavirus situation, which I currently priority.

Right to work checks will remain the same after Brexit

Until 1 January 2021, the Home Office has confirmed that right to work checks on EU and EEA nationals will continue as normal, under the processes laid out within the prevention of illegal working guidance published in January 2019.

There will be no requirement on organisations to differentiate between those citizens who were resident in the UK before, or after, the date of the exit. Instead, the normal documentary or online right to work checks can be carried out.

Coronavirus Employer & Employee Rights

Legal Implications of Coronavirus for Employers

At present there seems to be a high possibility of a Covid-19 pandemic in the United Kingdom. Infection rates could be seen to rise to nearly 60% of the population, with 25% suffering from more severe symptoms and 2% will require treatment.

If the Cornavirus spreads like suspected it will have a number of knock on effects, transport, schools, working patterns and more.

As an employer it would be irresponsible to presume that these predictions are exaggerated because we have survived other high-profile diseases and they haven’t spread like we thought they may. Now is the time to take sensible precautions and to prepare yourself for the worst. This could protect you from financial losses and claims in the future.

Your obligations

Contracts of employment contain obligations for you to take care of the health and safety of all of your employees.

Any breaches of these obligations could potentially lead to constructive dismissal claims and employee resignations.

As an employer you also have to follow a common law duty that states you have to take reasonable care of the health and safety of your employees. This includes providing them with a safe place of work.

If the damage was easily foreseeable your employee could bring a personal injury claim against you.

As a business you are subject to a similar obligation found under the Health & Safety at work act(1974) any breaches of this could lead to a criminal prosecution against you.

So it is imperative that you plan and prepare for what could be ahead.

Am I allowed to discipline or dismiss someone who is not ill but is refusing to come to work?

Dependent on the circumstances, yes. First you must take into account any existing conditions that may contribute to irrational or increased anxiety issues.

Do I have to still pay my employee if this happens?

It may well be a good idea for you to do so as the employee has rights to contractual sick pay. However, if the employee is not ill this does not apply. As previously mentioned though, if the employee is suffering from anxiety about the current threat of coronavirus, then they are entitled to the sick pay.

What should I do if my employee comes to work after being in contact with a person infected with the Coronavirus?

To begin with you should make sure that there are clear instructions that staff should not do this and that they should contact you via telephone if they believe they have been in contact with an infected person.

If any of your employees ignore this instruction then you can ask them to go home or to work from home. It is a possibility that you may have to pay your employee should this occur.

Should I impose new safety rules on staff? Do I need to talk to them about the new rules?

If the number of confirmed cases continue to rise as quickly as it has then there will be a duty for you to do so. Even now some would argue that as an employer you have a responsibility to impose these new safety rules.

It’s good practice to consult with all of your management team withing your organisation and to consider your specific needs and operations.

What if my employee chooses to ignore new rules?

If this situation arises then you may be in a position to take disciplinary action. Dependent on the specific circumstances a warning should be implemented first.

Can I adjust working hours to reduce the number of my employees at work at the same time?

Perhaps a good precaution to take if you believe it may reduce a risk of the staff becoming infected. You should however consult with the staff first.

Can I lay people off work or reduce their hours if my revenue becomes affected?

Dependent on if you have stipulated this already in your employee contracts. A well worded disaster recovery plan may give you this right.

 

Neonatal Paid Leave For Parents

Parents of Premature Babies To Be Given 12 Weeks Extra Paid Leave

Plans have been set out in this weeks budget to give neonatal allowance on top of maternity and paternity pay.

The parents of babies that are born premature will receive extra paid leave on top of the existing allowance, this is expected to be announced in this weeks budget.

In addition to the standard maternity and paternity allowance, the new policy that is to be introduced will see that parents of sick children are given statutory paid leave of approximately £160 a week for up to 12 weeks while the child is in neonatal care. The new policy will be available to parents with a newborn child that is in care for longer than a week.

At present the parents of children born prematurely are not entitled to extra leave and its often found that they will spend most of their statutory maternity/paternity leave by their child’s side in hospital. It is estimated that there are around 40,000 children that spend longer than a week in neonatal care.

The exchequer secretary to the Treasury, Kemi Badenoch said that the goverment would incur almost of of the cost of the new policy.

Kemi Badenoch said “creating this groundbreaking new entitlement is the right thing to do” “We also believe it is value for money, because a more supportive workplace environment for employees will be good for business and for the UK economy”

The extra leave policy would fulfil the governments manifesto pledge to introduce a new neonatal care plan.

The found of the charity “The Smallest Things” Catriona Ogilvy who have actively campaigned for the paid neonatal leave, was pleased with the announcement. She said ” As parent who have spent the first days, weeks or even months of our childrens lives in a neonatal intensive care unit, we are over the moon that the worry of work and pay will be eased for the incubator-watchers who follow in our footesteps”

“This will make a large difference to many families at the toughest times in their lives when the health of their babies needs to be their top priority”

Kemi Badenoch has said the the new policy will be in Wednesdays budget and will the first one delivered by Rishi Sunak who has now replaced Sajid Javid as the chancellor of the exchequer.

Statutory Sick Pay – Coronavirus

Prime Minister Boris Johnson has announced that statutory sick pay (SSP) will be paid from day one, not day four, for employees who have the coronavirus.

Announced yesterday , Johnson has stated that employees who self-isolate due to illness should not be ‘penalised for doing the right thing’. He therefore confirmed that, as part of emergency coronavirus legislation, SSP payments will be brought forward to day one of the illness, resulting in an extra payment per person.

The aim is that this will encourage people to stay away from work if they could potentially have been exposed to the virus and help slow down its spreading.

Although it is yet to be confirmed when this would come into law, and exact details are yet to be seen. With the coronavirus situation still developing, it is essential that employers are ready to implement these changes as soon as there has been confirmation.

Current SSP rates are set at £94.25 per week and are set to increase to £95.85 from 6 April 2020.