Government measures in key jurisdictions 5th edition - Flipbook - Page 156
UnitedKingdom
Employment
What
financial support
is
the government
providing to
businesses and
to individuals on
employment issu
es?
156
•
The UK Government introduced The Coronavirus Job Retention Scheme (or "furlough
scheme") in March 2020 under which employers could access a grant to cover the
wages for employees on “furlough” (i.e. still on their employer’s payroll but not providing
any work). Under the Scheme the grant covers 80% of an employee’s wage, up to a
maximum of £2,500 per month. To find out more: Coronavirus Job Retention Scheme.
•
The Coronavirus Job Retention Scheme was originally intended to last for three months,
but has been extended a number of times, most recently until 30 September 2021 (as
confirmed by the Chancellor in his Budget speech on 3 March 2021). Currently, the UK
Government is contributing 80% of wage costs for hours not worked up to a maximum
of £2,500 per month; employers only need to contribute employer National Insurance
Contributions and pension contributions. Employers will be expected to start
contributing towards the cost of wages for hours not worked by furloughed employees
from July onwards, at a rate of 10% in July and 20% in August and September. To find
out more: Coronavirus: Budget 2021 - furlough scheme extended and other
employment-related Covid news.
•
To be eligible, for periods up until 20 April 2021, employees must have been on their
employers payroll on 30 October 2020. For periods starting on or after 1 May 2021,
employees must have been on payroll on 2 March 2021. It is possible to “flexibly
furlough” employees – where an employees work some hours (and receives full pay
from their employer for hours worked) and is furloughed the rest of the time. It is not
possible to claim a furlough grant for any employee serving a contractual or statutory
notice period for their employer. To find out more: Coronavirus: furlough scheme
extended until March and Coronavirus: quick furlough update – notice periods not
covered from December.
•
The UK Government has also introduced changes to Statutory Sick Pay, which
can now be paid both to those who are displaying symptoms of Coronavirus, who live
with someone who has symptoms and who have been notified that they have been in
contact with someone with Coronavirus. To find out more: Coronavirus: an update on
Statutory Sick Pay.
•
At the start of the Coronavirus outbreak in 2020, the UK Government announced it
would be delaying changes to IR35 (also known as off-payroll working) in the private
sector, which have the potential to affect the taxation of payments to consultants and
contractors. These changes are due to come into effect on 6 April 2021. To find out
more: IR35 tax rules delayed by 12 months.
•
The UK Government is continuing to recommend that people should work from home
where they can and minimise the number of journeys they make where possible. It is
likely that this advice will remain in place until around Step 4 of it’s “roadmap out of
lockdown”, which will take place no earlier that 21 June 2021. For anyone unable to work
from home, they are permitted to attend their workplace. Employers are under an
obligation to follow “COVID Secure” guidelines. The Government has published a series
of guidance documents for employers aimed at helping ensure workplaces are as safe
as possible.
•
To find out more: Guidance on making workplaces safe for employees told they “should
go to work” - 10 key takeaways. And: Employment updates from 1 August - changes to
home working, the furlough scheme and further detail on the Job Retention Bonus.
•
To assist employers and employees, the UK Government has also amended the Working
Time Regulations 1998 (which govern holiday entitlement in the UK) to relax the carrying
over of holiday entitlement: under these new rules, workers will be allowed to carry-over
up to four weeks’ holiday into the next two holiday years. The Government has also
published guidance on holiday entitlement and pay during the Coronavirus pandemic.
To find out more: Holiday entitlement and pay during the Covid-19 pandemic and the
impact of this on the furlough scheme.
Government measures in key jurisdictions
