Closed due to coronavirus

(SMP) to be assessed according to the employee’s normal, full pay rather than their furlough pay.

The government announced new legislation which outlines that where statutory maternity leave starts on or after 25th April 2020, statutory maternity pay is to be assessed according to the employee’s usual full pay rather than their furlough pay.

It was understood that employees could be furloughed if they were on Maternity leave and that they could continue to receive statutory maternity pay. This policy needed further clarification on how the present COVID-19 retention scheme would interact with the family related leave that was already set in place.

The Statutory Maternity Pay (SMP) entitlement, along with the other family related pay schemes like parental or adoption pay are at present calculated by using the average earnings over an 8 week period. To qualify and to be eligible for SMP or SAP that employees average weekly earnings should be at the minimum equal to the lower earnings limit which is currently set at £120 per week over the 8 week test period. This period and the earnings are also used to determine the earnings-related rate of SMP and SAP for the first 6 weeks.

New legislation has now confirmed that the furloughed workers who are due to take their maternity, paternity, adoption, shared parental or parental bereavement leave after the 25th April will have their pay assessed based on their usual salary or full pay. No reductions are to be implemented from the Coronavirus job retention scheme.

Paul Scully the Business Minister has said “We’re supporting workers and the businesses in a way that the country has never seen before, in response to the unprecedented effects that COVID-19 has caused. The measures set in place are to ensure that those on the job retention scheme should continue to receive the parental leave and statutory pay that they are entitled to”

The changes that have been set in place are to ensure that the employees that intend to take time off for Maternity, Adoption, or bereavement will not lose out on entitlements to their pay as a result of being in furlough.

Companies and organisations will now have to take this into account when they calculate the amount that is payable to the furloughed staff who are due to take this form of leave. This could mean some fast recalculations of the previously worked out pay. They should also remember that the statutory rates for family leave was also increased at the beginning of April with a rise to £151.20 per week or 90% of their average weekly earnings, whichever is lower.

HMRC Portal for the Job Retention Scheme goes live tomorrow! Access the Step by Step guide in making a claim now!

HMRC are releasing the Portal for the Coronavirus Job Retention Scheme tomorrow.
 
HMRC have already released a step by step guide to assist with making a claim, to access this click the below link:
 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/880099/Coronavirus_Job_Retention_Scheme_step_by_step_guide_for_employers.pdf
New Employment Law April 6th 2020

Changes To Employment Law 6th April 2020

Good Work Plan comes into effect from today.

In July of 2017 Matthew Taylor published a report into modern working practices and stated that numerous changes were needed to improve the productivity of employees. In December 2018 the government responded with the “Good Work Plan” this promised developments to the law over the course of the next few years. In particular this month, April 2020. However, due to numerous worries like the Brexit and the Coronavirus outbreak companies have put the changes on the back burner. Never the less, today on the 6th April the new laws have still come into effect.

From today the following laws apply:

Changes to written contracts of employment April 6th 2020

Several changes have been introduced to the right to receive a written statement of the main terms (SMT) The document will list all of the employees key terms of employment, this will include their pay and annual leave entitlements. Up until today organisations were given 2 months to give this to a new employee. The grace period that existed from today has been removed. This means that the SMT will now have to be given to the employee from the first day of their employment.

Not only this, more details now will have to be stipulated in the SMT these are as follows:

  • Details of training provisions and requirements.
  • Terms and conditions that relate to work have also been extended to cover the terms that relate to normal hours of work, the days of the week that the employee will be required to work and if these will vary.
  • Terms related to paid leave such as family friendly leave.
  • All details of other employee benefits, such as benefits in kind or financial benefits.
  • Terms relating to probationary periods including those in relation to length and conditions.

Employers now also have to provide and SMT to their “workers” as well as all of their employees, this includes employees on a zero hour contract and casual workers.

National Minimum Wage increase April 6th 2020

The rates are for the National Minimum Wage. The rates change every April. The New rates below:

Holiday pay changes April 6th 2020

From the 6th April 2020 companies will now have to use a period of 52 weeks when calculating holiday pay to work out the average opposed to the previous period of 12 weeks.

This will be used to calculate holiday pay for employees who work irregular hours. The new calculation will balance out peaks and troughs of working hours throughout the year.

Parental bereavement leave

As of today, the 6th April 2020 all eligible employees will be allowed to take 2 weeks leave if they suffer either a stillbirth after 24 weeks into their pregnancy or a child under the age of 18 dies. This right is implemented from day one of employment and employees are entitled to take these in one single block of 2 weeks or two separate blocks of 1 week leave. Employees will have up to 56 weeks following the bereavement to take this leave.

Agency workers

As of today the “Swedish derogation model” contracts given to agency workers are banned. The contracts were used as a legal loophole to avoid paying agency workers the same basic pay as their direct recruits at the company after 12 weeks of being assigned. Anyone who is at present engaged on one of these contracts will be entitled to a statement to explain the effect of the ban on their pay. This will need to be given out no later than the 30th April 2020.

All agency workers will also now be entitled to a key facts sheet before agreeing to any terms which they will be undertaking work. This will include the minimum rate of pay, any deductions that could be expected from their pay and the type of contract the agency worker will be given.

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”

 

 

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.

 

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.

Jack’s Law – Paid leave for grieving parents

The UK has become the first country to offer grieving parents two weeks’ statutory paid leave. Known as Jack’s Law, the new rules will come into force in April, allowing all working parents who lose a child aged under 18 to take leave as either a single block of two weeks, or as two separate blocks of one week each across the first year after the death. Mother Lucy Herd began campaigning for reform after her son died in 2010. Her-then husband was given just three days leave.

New Year, new laws – upcoming changes in 2020

As 2019 draws to a close, here are some key developments to be aware of next year.

CEO pay ratio reporting

From 1 January 2020, UK listed companies who have in a year, on average more than 250 employees are expected to compare their CEO’s most recent remuneration against that of their full time-employees. 

Statement of main terms (SMTs)

The provision of SMTs will become a day one right for employees and workers from 6 April 2020. They will also need to contain additional details for the first time, including entitlement to family friendly leave, clarification of any probationary periods and confirmation of which specific days and times individuals are required to work.

Extension of holiday pay reference period

The holiday pay reference period, which is used to calculate the average pay of those who work irregular hours, will be extended from 12 to 52 weeks from April 2020. It will be important for organisations to keep track of employees’ working time throughout the year, including overtime, to ensure they are correctly remunerated whilst on annual leave.

End of Swedish derogation contracts

Organisations will no longer be able to make use of Swedish derogation contracts from 6 April 2020 as these contracts, which allow employers to avoid providing agency workers with equal pay after 12 weeks’ of an assignment, will become unlawful. 

Agency Workers ‘Key facts’ page

From 6 April 2020, agency work-seekers will have a right to receive a key information document to help them make informed choices about the work they accept. This document is required to clarify specific matters including the type of contract the worker is employed under and their minimum rate of pay.

Increase to minimum wage

As national minimum wage (NMW) rates are reviewed each year, it is reasonable to expect an increase to the existing rates in April 2020. The government has previously pledged to ensure those aged 25 and over will be entitled to a minimum of £10.50 per hour by 2024.  

Parental bereavement leave

The right to parental bereavement leave will also become effective in April 2020. Although no exact date has been confirmed, we know that qualifying parents will be entitled to two weeks of paid bereavement leave following the death of a child under the age of 18.

Government pledges

Although there have been no fixed implementation dates, the government have pledged to improve redundancy protection for working mothers and alter existing legislation around the use of non-disclosure agreements. We are also expecting the results of separate consultations on preventing sexual harassment as well as restructuring the availability of family friendly entitlements and statutory sick pay. However, it is worth remembering that much of this will depend on the new Conservative majority in government.

New Legislation To Require Organisations To Provide Basic References

New legislation could require organisations to provide a basic reference for all former employees.

The UK government has confirmed their intention to consult on forcing organisations to comply with requests to provide a basic reference to former staff.
Coming as part of their response to recommendations made by the Women and Equalities Select Committee regarding the misuse of non-disclosure agreements at work, the government accepted that the threat of withholding a reference could work to silence victims of sex or other forms of discrimination.
Business secretary Andrea Leadsom announced that the proposals would ‘ensure individuals are protected, striking a fair balance between the interests of employers and workers’.
Although there was no detail on what information would be required in a mandatory reference would, suggestions for basic references have included confirmation of an individual’s employment, as well as their start and finish date.
If anything, this proposed change could help to clarify the existing legal position around employee references as this can often be a source of confusion. In the meantime, organisations should keep in mind that there is currently no statutory requirement for them to provide a reference for a former employee, unless this is a contractual obligation or they operate in certain regulated sectors.
However, it is relatively unusual for an organisation to refuse requests to provide a reference and doing so to punish an employee for involvement in harassment claims, or whistleblowing, will be unlawful. Any inconsistency in giving references is also likely to increase the chances of employees feeling that they have been discriminated against.
Those who agree to provide a reference also have a duty of care to ensure the information given is accurate and fair. Organisations can be sued for defamation, or malicious falsehood, for providing unfavourable statements which are untrue, if the person giving the reference either knew it was untrue or was recklessly indifferent as to whether it was true.
As a result, it is becoming more and more common for employers to have a policy only to provide bare references, giving dates of employment, position held and sometimes salary. For assistance in writing a reference of this kind, please see our template letter for providing a reference to a former employee.