New National Lockdown and School Closures

The start of January usually means the start of a new term in schools. However, the continued escalation of the coronavirus pandemic has resulted in a number of changes to the expected return of pupils to schools across the UK, a situation that is constantly changing.  From Tuesday 5th January the government have enforced a new national lockdown and have closed schools for all children with the exception of vulnerable children and children of critical workers. Nurseries can remain open to all children.

In England all primary and secondary schools, along with colleges, must now stay closed until 15th February.

In Scotland schools are open for children of key workers, however they are to remain closed across the country, including on the islands, until at least 1st February.

In Wales schools are also currently open for children of key workers, with a phased return expected from 11th January. All pupils are expected on 18th January.

Many of you may be wondering what this means for you as an employer?

Where a parent is not self-isolating but are faced with unforeseen childcaring issues, they are legally entitled to unpaid time off for dependants. The employment right to this time off is intended to be for unforeseen emergencies only, of which the coronavirus will likely fall under. The law stipulates that time off for dependants can be taken specifically where a dependant has either fallen ill, is injured, or is assaulted.

Other circumstances in which this time can be taken include where arrangements for the provision of care of a dependant need to be made, where normal arrangements have been disrupted. This would include the unexpected closure of an employee’s child’s school. Currently, there is no qualifying service period required to entitle an employee to take time off work of this nature so employees who have just started a new role can still take this time off.

If parents are to take time off for dependants, they should be aware that, aside from the fact that it is unpaid, they are required to inform their employer as soon as reasonably practicable about the absence, the reason for it and the anticipated length. Organisations should not reasonably refuse this time off. Employees have a right to take a ‘reasonable’ amount of time off, which is generally taken to be up to 2 days per instance. This is because the point of the time off is to make other arrangements for childcare, rather than time off actually to look after the child. However, employers may want to consider the coronavirus situation when establishing principles around a ‘reasonable’ amount of time.

Where it is clear that a longer period of time off may be needed, organisations may find it beneficial to open up communication with employees about how an extended period of time off will be dealt with. It may be that employees are permitted to work from home where possible, or a temporary period of other flexible working options arranged. It should be remembered that working parents can also be furloughed in response to childcaring issues where necessary. However, there is no right to be furloughed; it is used at the employer’s discretion.

 

Employing Foreign Nationals Post-Brexit

The main impact of Brexit in employment law terms will be seen in the recruitment process as immigration laws change. Employers are already under an obligation to take steps to ensure a worker’s right to work in the UK and this process will be altered in light of the consequences of Brexit.

Currently, all EU citizens, as well as those from Iceland, Liechtenstein and Norway (EEA countries) and Switzerland are able to live and work in the UK under ‘free movement of persons’.

Between 1st February 2020 and 31st December 2020, EU/EEA/Swiss citizens could still come to the UK to work without having to obtain permission before their arrival. From 1st January 2021, the transition period, and so free movement ended. This means that EU/EEA/Swiss citizens arriving in the UK will need to gain permission to work in the UK, as is currently the case with non-EU/EEA/Swiss citizens.

What are the potential consequences for employing foreign nationals unlawfully?

Employers are under a legal duty to prevent illegal working and you can be subjected to penalties where you fail to do so.

There is a civil penalty in place where the employer can be fined a maximum of £20,000 per worker who does not have permission to carry out the work they are employed to do. Under the civil penalty scheme, an immigration officer who believes the organisation is employing an individual who does not have the correct permission to work can issue a notice imposing the fine.

To gain a ‘statutory excuse’ against the civil penalty, you need carry out right to work checks in accordance with the Home Office’s checking process. You should also only make offers of employment conditional upon successful right to work checks.

A criminal offence will be committed if you employ an individual and you have ‘reasonable cause to believe’ they do not have the right to work in the UK.

From 29th January 2019, employers can rely on the Home Office’s online right to work checking service to be granted the statutory excuse. Where the service can be used to check an individual’s immigration status, no further documentary checks will be required. This is to remain in place after 1st January 2021.

Does Brexit affect EU citizens I already employ?

Yes. EU citizens who are currently working for you,  need to take action to gain permission to remain in the UK. This applies unless they have already been granted indefinite leave to remain (ILR) or are from Ireland. Employees must apply to the EU Settlement Scheme. Successful application guarantees the right to continue living and working in the UK indefinitely.

How does the EU Settlement Scheme work?

Applications for the EU Settlement Scheme opened in March 2019 and will close on 30 June 2021. This means that employees have until 30th June 2021 to submit an application. Individuals must have be in the UK by 31st December 2020 to apply. Anyone arriving from 1st January 2021 onwards is not eligible to apply.

Successful applicants who have five years’ continuous residence in the UK at the time they make the application will be granted ‘settled status’ meaning they will have indefinite leave to remain in the UK.  Five years’ continuous residence is gained when someone has lived in the UK, the Channel Islands or the Isle of Man for 6 months in any 12-month period for five years in a row, with some exceptions.

Those who were in the UK by 31st December 2020 but do not have five years’ continuous residence by the date they apply will get ‘pre-settled status’, which allows them to stay in the UK until they have reached the five year residence point i.e. it allows them to stay for a maximum of five years and then they can apply for settled status.

How should employees apply to the EU Settlement Scheme?

Applications for the Scheme are made from the gov.uk website. It is free to apply.

Applicants will need to provide a valid passport or valid national identity card, alongside a digital photograph of their face. In the absence of these, alternative evidence may be provided in certain situations.  Applicants can:

  • scan their document and upload their photo using the ‘EU Exit: ID Document Check’ app using an Android phone, or an iPhone 7 or above
  • send their document in the post and upload their photo using the online application.

This evidence will need to be provided again to switch from ‘settled’ to ‘pre-settled’ status.

Individuals can provide their national insurance number for an automated check of their residence based on tax and certain benefit records. If this check is successful, the individual will not need to provide any further documentation. If not, the Home Office will notify them of the further information required instantly.

Please get in touch if you would like a letter to send out to employees on how they can apply for the scheme.

Are there situations where ‘settled status’ may be refused?

The Government has remained clear that the majority of applications for ‘settled’ or ‘pre-settled’ status under the EU Settlement Scheme will be accepted. However, the main reason they may be rejected is if the individual has committed serious or repeated crimes and/or poses a major security risk.

Applicants will be asked to declare any criminal convictions that appear in their criminal records, either in the UK or overseas. Individuals will also be checked against the UK’s criminal database. If they have been to prison, they will usually need to have five years’ continuous residence from the date of their release.

Individuals will not be asked to disclose spent convictions, cautions or alternatives to prosecution, such as speeding fines.

What will a successful applicant receive? 

Successful applicants will be sent an email confirming their status and the date it was granted with a unique reference number rather than a physical document. It usually takes around 5 working days for complete applications to be processed if no further information is required, but it can take up to a month.

Successful applicants can obtain a ‘share code’ to prove their immigration status to employers through the government website. Share codes can be used for prospective employers to check online if a job applicant has the right to work in the UK.

How can I make sure my EU citizen employees apply to the scheme?

Employers will no doubt be keen to make sure their employees secure permission to remain in the UK. However, it is ultimately the employee’s choice whether they stay or not.

Forcing employees to apply may constitute unlawful discrimination. Whilst it is not a legal obligation for you to inform employees about the Scheme, you may choose to encourage your employees to apply by, for example:

  • providing information about the EU Settlement Scheme, what is involved and the timeframes in place
  • allowing work IT equipment to be used to make the application
  • offering assistance when making the application to employees who are not proficient in the English language or are not confident in using IT equipment.

It will be helpful to carry out an audit of your workforce to understand which of your employees may need to apply.

Should I check that my EU citizen employees have applied to the Settlement Scheme?

Government guidance on the Scheme states that it is the responsibility of the individual to make an application. There is no requirement for the individual to inform you, as their employer, that they have applied or the outcome of their application. Likewise, you should not check that an employee has applied. This does not mean that you cannot ask the employee whether they have applied. The specific wording used by the Government – that employers should not ‘check’ – is to prevent any form of discrimination against employees who are eligible but have not yet applied.

The implications for an employee who needs to apply, but does not, are not yet clear and it is hoped that the Government will provide clarity in the not too distant future.

When recruiting, can I ask job applicants to provide evidence that they have obtained status under the EU Settlement Scheme?

You must continue to check the right to work of all job applicants. Government guidance states that you will continue to check a job applicant’s right to work in the UK under existing rules until 30th June 2021 i.e. there is no change to right to work checks until then. Currently, job applicants can prove the right to work with any of the following:

  • their valid passport or national identity card if they’re an EU, EEA or Swiss citizen
  • their valid biometric residence card if they’re a non-EU, EEA or Swiss citizen family member
  • their status under the EU Settlement Scheme using the Home Office’s online right to work checking service.

Whilst job applicants can use their status under the EU Settlement Scheme as evidence, you cannot require them to produce this. If they do so, you can use the share code to check status online. If an EU citizen produces their valid passport, then this is sufficient evidence of their right to work. There is no obligation to provide their status under the Settlement Scheme. Requiring this is likely to constitute discrimination. You cannot make an offer of employment, or continued employment, dependent on an individual having made an application.

How will I know whether an EU national arrived in the UK before or after 1st January 2021?

The reality is that you will not know this, nor are you required to find out due to guidance stating that right to work checks will not change until after 30th June 2021. The Government has not yet addressed the consequent predicament that employers are left in.

What are the rules on recruiting EU nationals under new immigration rules from 1st January 2021?

From 1st January 2021, a new points-based immigration system will come into operation which will apply to all non-British and non-Irish citizens. Under this system, anyone coming to the UK for work must meet a specific set of requirements for which they will score points. Visas are then awarded to those who gain enough points.

There will be various routes available for entry to the UK to work, including:

  • Skilled worker
  • Intra-company transfer
  • Health and care visa
  • Start up and innovator
  • Global talent visa
  • Graduate

How will the skilled worker route work?

Currently, foreign nationals from outside the EU can enter the UK under a Tier 2 visa, which involves them attaining a certain number of points, including sponsorship from an employer licensed by the government to sponsor. A similar system is set to be introduced from 1st January 2021, which has been labelled the ‘skilled worker’ route.

This is expected to be the route in which the vast majority of foreign nationals seek to enter the UK to work. There will be no cap on the number of individuals taken on through this route.

Applicants will need to achieve 70 points in total, made up of 50 mandatory points, and 20 tradeable.

All applicants will be able to trade characteristics, such as their qualifications, against a lower salary to get the required number of points. If the job offer is less than the minimum salary requirement, but no less than £20,480, an applicant may still be eligible if they have:

  • a job offer in a specific shortage occupation
  • a PhD relevant to the job
  • a PhD in a STEM subject relevant to the job.

Mandatory points

  • Job offer from an approved sponsor – 20 points
  • Job at the required skill level (RQF 3 or above (A Level and equivalent)) – 20 points
  • English language to a required level (this will need to be evidenced by completing a test or having a degree in English language similar to an English bachelors) – 10 points

In addition to this, the job offer must meet the applicable minimum salary threshold. This is the higher of either:

  • the general salary threshold set by the Government on advice of the independent Migration Advisory Committee at £25,600, or
  • the specific salary requirement for their occupation, known as the “going rate”.

It is expected that only the applicant’s basic salary will count towards the tradeable points criteria.

Tradable points

  • Salary of £20,480 to £23,039 or at least 80% of the going rate for the profession (whichever is higher) – 0 points
  • Salary of £23,040 to £25,599 or at least 90% of the going rate for the profession (whichever is higher) – 10 points
  • Salary of £25,600 or above or at least the going rate for the profession (whichever is higher) – 20 points
  • Job in a shortage occupation as designated by the Migrant Advisory Committee (MAC) – 20 points
  • Education qualification: PhD in a subject relevant to the job – 10 points
  • Education qualification: PhD in a STEM subject relevant to the job – 20 points

All jobs have a corresponding Standard Occupational Classification (SOC) code. Each SOC code has a designated skill level. This determines whether the job meets the requirements of the skilled worker route.

Examples of point attainment

1. Lab technician with a STEM PhD coming to the UK with salary offer of £21,000. The general salary threshold applies.

  • General salary threshold: £25,600
  • Job offer – 20 points
  • RQF 3 or above – 20 points
  • English language – 10 points
  • Salary – 0 points
  • Education qualification: STEM PhD – 20 points
  • Total – 70 points

2. Mechanical engineer coming to the UK with salary offer of £26,750. The “going rate” salary threshold for the profession applies.

  • General salary threshold: £33,400
  • Job offer – 20 points
  • RQF 3 or above – 20 points
  • English language – 10 points
  • Salary – 0 points
  • Job offer in a shortage occupation – 20 points
  • Total – 70 points

A highly skilled worker route is likely to be implemented in 2022.

How will the health and care visa work?

A Health and Care Worker visa is part of the skilled worker route. It allows medical professionals to come to or stay in the UK to do an eligible job with the NHS, an NHS supplier or in adult social care.

To qualify for a Health and Care Worker visa, individuals must:

  • be a qualified doctor, nurse, health professional or adult social care professional
  • work in an eligible health or social care job
  • work for a UK employer that’s been approved by the Home Office
  • have a ‘certificate of sponsorship’ from their employer with information about the role they’ve been offered in the UK
  • be paid a minimum salary – how much depends on the type of work they do.

How will the global talent visa work?

This route is already in use for non-EU nationals, having been introduced in February 2020 to replace the previous Tier 1 system. It allows talented and promising individuals in the fields of science, engineering, medicine, humanities, digital technology, and arts and culture (including film and television, fashion design and architecture) to live and work in the UK.

In order to apply under this category, individuals will require an endorsement from an approved endorsing body. The endorsing bodies include:

  • The Royal Society
  • The British Academy
  • The Royal Academy of Engineering
  • Tech Nation
  • Arts Council England
  • UK Research and Innovation (UKRI).

Once endorsed, foreign nationals will be given ‘highly flexible permission’ to work for organisations or be self-employed.

How will the start up and innovator route work?

This route has also been in place for non-EU nationals since Match 2019. It is available to individuals who are setting up a business for the first time or have industry experience and at least £50,000 to fund their venture.

Foreign nationals looking to use this route must have support from an approved endorsing body alongside the appropriate government department. Endorsing bodies can be a higher education provider or a business with a track record of supporting UK-based entrepreneurs.

How will intra-company transfers work?

To qualify, the applicant must:

  • be performing a role skilled to RQF level 6 (as opposed to RQF level 3, permitted under the Skilled Worker category).
  • be paid at least £41,500 a year or the going rate for the job, if higher, compared to £20,480 under the Skilled Worker route.
  • have been employed by the sending business for at least 12 months prior to the transfer.

Do I need to apply for a sponsorship license?

Currently, employers that wish to employ foreign nationals who are not covered by free movement of persons must have a sponsorship license to do so. From 1st January 2021, you must have a sponsorship license to employ a foreign national through some, though not all, of the immigration routes. The skilled worker route requires sponsorship. Sponsorship licences are not needed to employ an individual who has status under the EU Settlement Scheme.

Employers can sponsor an employee only if the role meets the minimum requirements. An employer who is sponsor can issue sponsorship certificates to foreign nationals who will then use it as part of their visa application.

How do I get a sponsorship license?

Sponsorship carries certain eligibility requirements. You must not have any unspent convictions for immigration offences or certain other crimes, such as fraud or money laundering. You must not have had a sponsorship licence revoked in the previous 12 months.

You should decide what licence you wish to apply for; currently, they differ depending on whether you are taking on staff temporarily or more long-term. This will need to be specified when you make your application. The longest you can sponsor a worker for is 5 years.

You will need to pay a fee to apply for a licence, which varies depending on the size of your organisation. Small companies will pay £536 for each application. Larger organisations will pay £1,467 for a licence to take on long-term staff, and £536 for temporary staff. You are likely to be considered a large company if your annual turnover is over at least £10.2 million and you have at least 50 employees.

It takes an average of eight weeks to process applications. You can seek a decision from the Government within 10 days, however this offer is limited to the first 10 applications in a day and costs an extra £500.

Licences are applied for via gov.uk.

What is involved in being a sponsor?

You need to appoint people within your business to manage the sponsorship process when you apply for a licence, and they will use the Government’s sponsorship management system (SMS).

The roles are:

  • authorising officer – a senior and competent person responsible for the actions of staff and representatives who use the SMS
  • key contact – your main point of contact with UK Visas and Immigration (UKVI)
  • level 1 user – responsible for all day-to-day management of your licence using the SMS

These roles can be filled by the same person or different people.  They must be based in the UK most of the time and not be a contractor or consultant contracted for a specific project. Other criteria also apply.

You can also appoint an optional level 2 user once you have your licence. This is an SMS user with more restricted access than a level 1 user, for example they cannot withdraw a certificate of sponsorship.

Suitability checks will be carried out on you and you employees. You may not get your licence in certain circumstances, including if anyone involved in sponsorship has:

  • an unspent criminal conviction
  • been fined by UKVI in the past 12 months
  • been reported to UKVI.

Employers who ae approved for a sponsorship licence will be added to the register of sponsors and will be able to issue certificates of sponsorship. You’ll get an A-rated licence if your application is approved but your rating can be downgraded, suspended or withdrawn if you do not keep up with the employer responsibilities. These are:

  • checking that your foreign workers have the necessary skills, qualifications or professional accreditations to do their jobs, and keeping copies of documents showing this
  • only assigning certificates of sponsorship to workers when the job is suitable for sponsorship
  • telling UK Visas and Immigration (UKVI) if your sponsored workers are not complying with the conditions of their visa.

You must also:

  • monitor your employees’ immigration status
  • keep copies of relevant documents for each employee, including passport and right to work information
  • track and record employees’ attendance
  • keep employee contact details up to date
  • report to UKVI if there is a problem, for example if your employee stops coming to work
  • report any significant changes in your own circumstances within 20 working days, for example if you:
    • stop trading or become insolvent
    • substantially change the nature of your business
    • are involved in a merger or take-over
  • tell UKVI if you’re changing your details, like your address or allocated roles
  • make sure that foreign workers under 18 have suitable care arrangements for their:
    • travel to the UK
    • arrival in the UK
    • living arrangements in the UK
  • get a letter from the parents of someone under 18 giving consent to the care arrangements.
  • get a Disclosure and Barring Service check on any of your workers who need it.

You may have to pay an additional charge when you assign a certificate of sponsorship to someone applying for a Skilled Worker or Intra-company Transfer visa. This is called the ‘immigration skills charge’.

You must pay the immigration skills charge if they’re applying for a visa from:

  • outside the UK to work in the UK for 6 months or more
  • inside the UK for any length of time.

The amount you need to pay is based on:

  • the size of your organisation
  • how long the worker will work for you, using the start and end dates on their sponsorship certificate

Small or charitable sponsors must pay £364 for the first 12 months, followed by £182 for each additional 6 months. Medium or large sponsors will pay £1,000 for the first 12 months and £500 for each additional 6 months.

Furlough scheme extended further

Chancellor Rishi Sunak has announced that the furlough scheme is to be extended until the end of April 2021 with the Government continuing to contribute 80% towards wages.

In a move to ensure firms can access the support they need through continuing economic disruption, Mr Sunak also confirmed that he would be extending the Government-guaranteed Covid-19 business loan schemes until the end of March.

These changes come ahead of the Budget, which the Chancellor has confirmed will take place on 3 March 2021.

This will, he said, deliver the next phase of the plan to tackle the virus and protect jobs, so the extensions to the business loan and furlough schemes enable businesses to plan with certainty and access support in the first few months of the New Year ahead of that further update on wider Covid-19 economic support.

The eligibility criteria for the UK-wide scheme will remain unchanged and these changes will continue to apply to all Devolved Administrations.

The Chancellor said he would review the employer contribution element of the Coronavirus Job Retention Scheme (CJRS) in January, but decided to bring this forward to allow businesses to plan ahead for the remainder of the winter and the New Year.

The Government will continue to pay 80% of the salary of employees for hours not worked until the end of April, he confirmed.

Employers will only be required to pay wages, National Insurance Contributions (NICs) and pensions for hours worked, and NICs and pensions for hours not worked.

The loans available until the end of March are the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme.

These had been due to close at the end of January.

The Treasury has pointed out that extending the CJRS until the end of April gives businesses certainty well ahead of the 45-day redundancy notice period, with the Budget setting out the next phase of support more than 45 days before the new end date of the scheme.

Christmas and Annual leave

With Christmas Day falling next week, organisations may wonder how they should manage annual leave over the festive period. We explore this further below.

As the festive season approaches, workers will be looking forward to spending some quality time at home with their friends and family, provided they do so with coronavirus restrictions in mind. While most staff will be entitled to enjoy some time off over Christmas, this will differ depending on the organisation’s approach and their contractual terms.

Three bank holidays span the festive period; Christmas Day, Boxing Day and New Year’s Day. Although Boxing Day falls on a Saturday this year, the bank holiday for this particular day will actually fall on the following Monday 28 December. Workers often believe that they have the statutory right to paid time off work on these days. However, this isn’t necessarily the case. Instead, this will depend on their contract of employment and employees can be made to work bank holidays, providing they still receive a minimum of 28 days paid holiday within the leave year.

Workers that are originally scheduled to work over Christmas may request this time off as annual leave. Again, organisations are free to set their own rules on holidays over the festive period, and those who operate in industries such as retail and hospitality that are currently permitted to be open may implement a blanket ban, preventing staff from taking holidays during this time to cope with increased customer demand.

Alternatively, organisations can choose to let staff book time off over the festive season, and it would be reasonable to require individuals to follow the standard procedure for requesting annual leave. Although employers may be encouraged to favour requests from staff with young children, they should consider where this may lead to accusations of favouritism.

Some employers may opt to relax rules on how many staff can be off at the same time over Christmas, especially if the business is expected to be slow. Usually, organisations may want to give extra consideration to workers from further afield who plan to travel home over the Christmas period, however these workers should be reminded about current coronavirus travel restrictions, both overseas and to different areas in the UK.

Whilst organisations should avoid trying to dictate to staff what they can and cannot do in their spare time, they should be reminded of the rules surrounding the need to self-isolate. If employees are going to need to take unpaid leave, for example, it may deter them from taking potentially risky tips.

Companies that shut down temporarily in between Christmas and New Year can opt to enforce mandatory annual leave to cover this period. For this to work, organisations must provide staff with sufficient notice. Organisations can do this by distributing an email on this matter or including this information within contracts of employment.

Staff that are currently on furlough, and therefore receiving 80 per cent of their wages, can take the Christmas bank holidays as annual leave, however they need to be paid in full for this time. This means that the organisation will need to top up their holiday pay by the remaining 20 per cent.

Workers that are curious about their entitlement to leave during the Christmas period are encouraged to review their contracts and any relevant workplace policies. While organisations do have the flexibility to set their own rules on holidays during this time, they should think carefully about which approach would best support their specific business operations.

Shorter Self-isolation periods introduced across the UK

The government has confirmed that self-isolation periods in England, Scotland and Northern Ireland are to be shortened to 10 days from Monday 14 December.

The UK government has confirmed that this change will also be extended to the rest of its nations; England, Scotland and Northern Ireland.

This change means that those who has come into close contact with someone who has tested positive for coronavirus will now need to self-isolate for a period of 10 days instead of 14. It also includes those who are quarantining after returning from a high-risk country. Currently, isolation periods for those who test positive is 10 days, and this is to remain the same.

Anyone who is currently self-isolating will be able to end their quarantine if they hit this 10-day mark from Monday, and will therefore not need to complete the full 14 days. However, if they do start to show symptoms in this time, or test positive for coronavirus, they will need to isolate for a further 10 days from this date as usual.

In a joint statement, the four UK chief medical officers (CMOs) have outlined that this decision came following a review of the evidence, saying that they are ‘confident’ self-isolation periods can be reduced in these circumstances.

Organisations will now be able to ask staff back into work after 10 days instead of 14, which will certainly help to reduce the impact of them not being able to come into the workplace for this period of self-isolation. Whilst staff that cannot work from home during this time will still be entitled to receive statutory sick pay (SSP), this will be shortened to 10 days instead of 14.

It should be noted that this will now apply across the UK, regardless of local restrictions. It is also understood that the NHS Test and Trace app will not be updated until Thursday. Because there will be a time-lag before it updates, anyone who has been advised to isolate by the app can leave isolation if their countdown timer hits three days between Monday and Thursday.

A return to the three tier system

With the current national lockdown in England now ended on 2 December, the Prime Minister has confirmed a return to the three tier system.

The Government has now launched an online tool where it should be possible to enter a postcode to confirm the relevant tier, which can be found here.

A full list of areas and the tiers to which they have been allocated is available here.

According to the Health Secretary, allocation to a tier is based on: Case detection rates in all age groups; Case detection rates in the over 60s; the rate at which cases are rising or falling; positivity rate (the number of positive cases detected as a percentage of tests taken); and pressure on the NHS.

Tier 1

There are very few regions in Tier 1 (medium alert): Cornwall, the Isle of Wight and the Isles of Scilly.

Tier 2

Within Tier 2 (High alert), the most notable entries are all 32 boroughs of London (plus the City) and Liverpool City Region (thanks, presumably to the enhanced testing trialled there).

Cumbria and Warrington and Cheshire join Liverpool in Tier 2 as do York, Worcestershire, Northamptonshire, Cambridgeshire (including Peterborough), East and West Sussex, Surrey and Windsor and Maidenhead.

Much of the South West is also in Tier 2 including Dorset, Bournemouth, Poole, Christchurch, Gloucestershire, Devon and Wiltshire and Swindon.

Tier 3

Turning to the Very High alert Tier 3, we find most of the North East including Middlesbrough, Sunderland, Newcastle upon Tyne, County Durham, Gateshead and Northumberland.

In the North West, Greater Manchester, Lancashire, Blackpool and Blackburn with Darwen all come under Tier 3 restrictions as do, on the other side of the Pennines, The Humber and West and South Yorkshire.

Much of the Midlands will also be in this tier: Birmingham and Black Country, Warwickshire, Coventry and Solihull, Staffordshire and Stoke-on-Trent in the west while in the east Nottingham and Nottinghamshire, Derby and Derbyshire, Leicester and Leicestershire and Lincolnshire are all included.

In the South East, only Slough and Kent and Medway fall into Tier 3 while the South West sees Bristol, South Gloucestershire and North Somerset included.

The measures will be reviewed every fortnight, Mr Hancock said, with the first full review to be completed by 16 December.

Furlough scheme extended

Only a few days ago we reported on the Chancellor’s decision to extend the Coronavirus Job Retention Scheme (CJRS) as a result of the Government’s decision to take England into a second lockdown.

On 5th November, the day the new restrictions came into force, Rishi Sunak was back in the House of Commons explaining to MPs that he was now planning to offer ‘significant extra support to protect jobs and livelihoods in every region and nation of the UK’.

The CJRS will now run until the end of March 2021 with employees receiving 80% of their current salary for hours not worked. In addition, the next self-employed income support grant will also increase, from 55% to 80% of average profits – up to £7500.

The Government will not pay the Job Retention Bonus in February, as previously announced, but instead redeploy a retention incentive ‘at the right time’.

There are currently no employer contribution to wages for hours not worked.

Employers will only be asked to cover National Insurance and employer pension contributions for hours not worked. For an average claim, this accounts for 5% of total employment costs or £70 per employee per month.

It should be noted that the CJRS extension will be reviewed in January to examine whether the economic circumstances are improving enough for employers to be asked to increase contributions.

The Job Support Scheme has been postponed.

CBI Chief Economist, Rain Newton-Smith, said: ‘Extending the tried and trusted Job Retention Scheme will give companies the certainty and stability they need to help safeguard thousands of jobs into March. Sectors and supply chains under the greatest strain may need more tailored support in the coming weeks.’

Furlough extended

Having reluctantly conceded that the three tier system in England is not reducing the coronavirus rate of infection, Prime Minister Boris Johnson has announced that he sees no alternative but to adopt tougher national measures.

There is one significant difference between the latest measures and those the country experienced during the Spring lockdown, however, and that is that the education sector – school, colleges and universities – will remain open.

While non-essential shops, leisure and entertainment venues will be closed, click and collect services will continue and essential shops, including supermarkets, will remain open.

From Thursday 5 November, ‘everyone must stay at home’ and people should work from home wherever possible with pubs, bars and restaurants all closed, except for takeaway and delivery services.

Workplaces should stay open where people cannot work from home, the Prime Minister said, in the construction or manufacturing sectors for example.

People cannot travel internationally or within the UK, unless for work, education or other legally permitted exemptions. Overnight stays away from primary residences will not be allowed, except for specific exceptions including for work.

Public services, such as job centres, courts, and civil registration offices will remain open.

Help available for businesses

The Treasury has announced that the Coronavirus Job Retention Scheme (CJRS) has been extended for one month with employees receiving 80 per cent of their current salary for hours not worked, up to a maximum of £2500.

Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ended on 31 October.

‘This means the extended furlough scheme is more generous for employers than it was in October,’ the Treasury explained.

Businesses will have flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time, and will only be asked to cover National Insurance Contributions (NICs) and pension contributions only for the hours the employee does not work.

For the average claim, these contributions account for just 5% of total employment costs.

All employers with a UK bank account and UK PAYE schemes can claim the grant. Neither the employer nor the employee needs to have previously used the CJRS.

However, it must be noted that, to be eligible to be claimed for under this extension, employees must have been on an employer’s PAYE payroll by 23:59 on 30 October 2020. This means a Real Time Information (RTI) submission notifying payment for that employee to HMRC must have been made on or before that date.

In addition, business premises forced to close in England are to receive grants worth up to £3000 per month under the Local Restrictions Support Grant, as follows:

  • for properties with a rateable value of £15,000 or under, grants will be £1334 per month, or £667 per two weeks;
  • for properties with a rateable value of between £15,000 and £51,000, grants will be £2000 per month, or £1000 per two weeks; and
  • for properties with a rateable value of £51,000 or over, grants will be £3000 per month, or £1500 per two weeks.

A further £1.1 billion is being given to local authorities, distributed on the basis of £20 per head, for one-off payments to enable them to support businesses more broadly.

Further details, including how to claim this extended support through an updated claims service, will be provided shortly, the Government has said.

Looking ahead

The Government will put its proposals to a vote in Parliament on Wednesday 4 November and, although it obviously has a healthy majority, a number of its backbenchers have expressed opposition to the idea of a stricter lockdown.

While it is extremely unlikely that the Government will be defeated in the vote, a number (including former Conservative leader Sir Iain Duncan Smith) have begun speaking out against the proposals.

They will be even more unhappy when they read comments from Cabinet Office minister Michael Gove to the effect that, if the R rate is not brought below 1, there may have to be an extension of the restrictions beyond 2 December.

Echoing his warning, Sage member Sir Jeremy Farrar said the proposed end date of the four-week lockdown was “useful” but people should not be “fixed on it”.

Finally, Greater Manchester Mayor Andy Burnham and Liverpool City Region Mayor Steve Rotherham have joined the National Education Union (NEU) in calling for England’s schools and colleges to close during the lockdown.

The NEU has warned that if schools and colleges stay open, the restrictions will be less effective.

New laws surrounding breach of self-isolation

With new laws surrounding breach of self-isolation requirements now in force, organisations need to be aware if their employees are told to isolate.

From 28th September 2020, it became a legal requirement for employees to self-isolate if told to do so as a result of potential, or confirmed, coronavirus exposure. These can range from having symptoms, to being told they have a positive case of Covid-19, to coming back from a country listed by the government has having high infection rates.

Breaching these new ‘Self-Isolation Regulations’ can lead to individuals receiving significant fines, a liability that also extends to organisations. In a nutshell, if businesses are found to have breached these requirements, they will face a fixed penalty notice of £1,000, rising to £10,000 for fourth offenses and above. It is therefore crucial that organisations understand the law.

In the Regulations, if an organisation requires an employee to come into work despite them being told to self-isolate, they will have committed an offence. This extends not just to them attending the usual place of work, but any other place connected with work that is not the location in which they are self-isolating, ie their home. For example, if an employee is asked to visit a client on work-related purposes, or even a colleague, this would still be in breach of the Regulations despite any social distancing in place and their visit only being a short one. Whilst staff can be asked to work from home if they are well enough to do so, they must not be encouraged or told by an organisation to leave here for work-related purposes.

These provisions also extend to ‘knowingly’ allowing an employee to attend the workplace, in other words being aware they have been told to self-isolate but permitting them to come into work if they want to. However, the situation does get a little bit trickier if the organisation is not aware of their employee’s situation, and this employee then goes on to breach the rules. Whilst employees are expected under the Regulations to disclose this if they have to undertake work-related activities outside of the place they are self-isolating, the law is less clear on what happens if an organisation is not told, or if the message does not get through to management.

To this end, it is vital that organisations take these new Regulations into account and make sure they are adhering to them. Employees should be clearly informed what they are expected to do if they are told to self-isolate, including who they need to tell, when and how. It should also be made clear that, due to the importance of adhering to the Regulations, failure to follow this could result in disciplinary action.

Businesses required to close due to COVID restrictions to get extra support

In an extension to the Jobs Support Scheme, which is due to begin on 1st November 2020, The Chancellor has announced that businesses across the UK are to be given support if required to close their premises due to coronavirus restrictions.

Those legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work with the aim, the Chancellor explained, of protecting jobs and enabling businesses to reopen quickly once restrictions are lifted. Eligible businesses will see two-thirds of each employees’ salary (or 67%) paid by the Government up to a maximum of £2,100 a month.

‘The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors,’ Mr Sunak said, ‘giving them the right support at the right time.’

Under the revised scheme, organisations will not be required to contribute towards wages and will only be asked to cover National Insurance Contributions (NICs) and pension contributions. Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

The scheme will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via an HMRC claims service that will be available from early December.

Employees of firms that have been legally closed in the period before 1st November are eligible for the Coronavirus Job Retention Scheme (CJRS), the Chancellor pointed out. As the scheme is UK wide, the UK Government has said that it will work with the devolved administrations to ensure the scheme operates effectively across all four nations.

As well as the expansion of the JSS described above, the Government is increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs. These grants will be linked to rateable values, with up to £3000 per month payable every two weeks, compared to the up to £1500 every three weeks which was available previously.

This could, the Treasury said, benefit hundreds of thousands of businesses, including restaurants, pubs, nightclubs and bowling alleys.