Social distancing relaxed

Our long national lockdown is beginning to come to an end, Prime Minister Boris Johnson announced that the Government had decided that the social distancing rules in England could be relaxed from 4th July.

He referred to a new “one metre plus” rule that would mean people maintaining a distance of one metre (where two metres was not possible) while combining this with other measures including face coverings, regular hand washing and not sitting face-to-face.

Mr Johnson’s statement that this meant that pubs, restaurants, hotels and hairdressers could reopen from the above date.

Director General Adam Marshall warned: “While the relaxation of the two-metre rule will help more firms increase capacity, we are still a long way from business as usual. Broader efforts to boost business and consumer confidence will still be needed to help firms trade their way out of this crisis.”

For the Institute of Directors (IoD), Director of Policy Edwin Morgan was equally careful.

He said: “This change isn’t a panacea, and doesn’t mean safety can take a backseat. If anything, the onus is now even more on directors to ensure rigorous mitigating measures are in place. In some cases, this won’t be easy or cheap. With many firms already strapped for cash, the Treasury should consider supporting companies to make the necessary adjustments, particularly as some haven’t been able to access schemes so far.”

The Prime Minister had made clear that the proposed re-openings would come with a number of restrictions including venues being asked to collect contact details of customers for the NHS Test and Trace system and pubs and restaurants only being allowed to offer table service.

In other changes, up to 30 people will be allowed to attend a wedding and places of worship will be allowed to hold services. While cinemas, theatres, art galleries and museums can reopen, there will be no live performances.

Changes to the Job Retention Scheme

The Chancellor of the Exchequer, announced the following changes to the Job Retention Scheme.

The Coronavirus Job Retention Scheme was originally scheduled to finish at the end of June – this has now been extended until the end of October. There are key dates that are important for employers to understand.

10th June – This is the final date by which an employer can furlough an employee for the first time. (The full furlough scheme is due to close on 30th June, however there must be a full 3 week furlough period completed prior to this date to qualify. Records must be kept for dates of furloughing employees as evidence this was prior to the 10th June.

30th June – Until this date employers can continue to claim 80% of furloughed employees current salary, up to £2500, but the employee must not carry out any work for their employer. Employers are not required to contribute anything towards furloughed employees’ salaries for June.

1st July –  From 1st July the furlough scheme becomes more flexible – applying only for those previously furloughed – these employees can now return to work part time, but employers can still claim the grant for any normal hours not worked. The amount of working time and any shift patterns should be agreed with the employee.

1st August –  Employers will have to pay employee’s National Insurance Contributions (NICs) and pension contributions and can no longer claim a grant for these. This applies to both the hours worked and the hours not worked. Until 31st August the Government will pay 80% of furloughed employees wages up to the cap of £2,500 for hours not worked. Employers must pay their employees for the hours they work.

In September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work. Employers will also pay employer NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500.

1st-31st October –  The Government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work. Employers will also pay employer NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500.