Topic

Measures Taken/Proposed

Coronavirus Job Retention Scheme

In broad terms this is a temporary scheme initially put in place for 3 months starting from 1 March 2020, however on 16 April it was extended by one month until the end of June 2020 and then extended again to the end of October.  It is designed to help employers whose operations have been severely affected by coronavirus to retain employees and protect the UK economy. However, all employers are eligible to claim under the scheme as it is recognised that different businesses will face different effects from coronavirus. From July the scheme will change to allow furloughed staff to work part-time with employers paying 100% of wages for hours worked and the grant covering (initially) 80% of wages (subject to the cap of £2,500) and employer NIC's and pension contribution for any of the employees normal hours that are not worked.  From August onwards employers will increase their contribution to the pay for hours not worked and the scheme is due to be wound down by the end of October. 

See our scheme Overview and FAQs, Returning for furlough FAQs, Flexible furlough from 1 July the UK Government guidance for employers and employees and ACAS coronavirus advice for employers and employees

Statutory Sick Pay

A number of changes have been made to SSP including:-

• Suspension of the 4 day waiting period which will apply retrospectively from 13 March 2020 for employees whose incapacity for work is related to coronavirus.  This means SSP will paid from the first day of absence in any such case.
• Employers with fewer than 250 employees can reclaim payments of SSP made for the first 14 days of incapacity for work related to COVID-19 with retrospective effect from 14 March.
• A number of new categories of person will be deemed to be incapable of work for the purposes of SSP
• Employees can use isolation notes to provide evidence to their employers that they have self-isolated because of COVID-19.

For more information see our Coronavirus and employees FAQ, UK Government guidance for employers and business on coronavirus and guidance on claiming back SSP paid to employees due to coronavirus

Self-employment income support scheme

This temporary scheme provided, subject to certain eligibility criteria, for self-employed individuals or members of a partnership to claim a taxable grant worth 80% of trading profits up to a maximum of £7,500 for a 3 month period.  The grant is paid in a single instalment.  A second grant, also to be paid in a single instalment, is to be made available with appliations opening in August.  The second grant is for 70% of trading profits up to a maximum of £6,570 for the three month period.  For more information on this see our guidance on the scheme as well as the UK Government guidance. 

Additional help for the self-employed includes:-

• Deferral of self-assessment income tax payments due in July 2020 and VAT payments due from 20 March to 30 June 2020;
• Grants for businesses that pay little or no business rates; and
• Business Interruption Loan Scheme.

For more information see UK Government guidance COVID-19: support for businesses.

Emergency statutory volunteer leave

Employees and workers who have been certified by an appropriate authority to act as an emergency volunteer will be able to take unpaid leave in blocks of two, three or four weeks. 

To take the leave workers must:-

• Give three working days' notice
• Produce a certificate confirming they have been approved

A UK wide compensation scheme is to be set up to compensate volunteers for loss of earnings, travel and subsistence.  Workers will remain bound by terms and conditions of employment (except those relating to pay) and there will be a statutory right to return to their job.  Automatic unfair dismissal protection will be extended to cover this leave as will protection from detriment. 

This leave and some of the measures relating to SSP have been implemented in the Coronavirus Act 2020. 

Annual leave

The rules relating to carry forward of annual leave have been relaxed in response to the coronavirus outbreak. Regulation 13 holidays (the 4 weeks provided for under the EU Working Time Directive) can be carried forward and taken in the two leave years immediately following the year in respect of which it was due where it was "not reasonably practicable" to have taken it as a result of the effects of coronavirus.  Effects of coronavirus include the effect on the worker, the employer or the wider economy or society.

For more information see our blog and ACAS guidance on using holiday and the UK Government guidance on Holiday entitlement and pay during coronavirus.

Immigration

Temporary changes were made to right to work checks with effect from 30 March 2020 to make compliance easier.  For more information on what employers need to do now see what amendments have been made to the right to work procedures as a result of coronavirus.

Visa centres inside and outside the UK suspended operations due to coronavirus in late March.  For more details on the implications for businesses with overseas staff see business immigration and the coronavirus.

IR35 and Gender pay gap reporting

The implementation of the new rules on off-payroll working (IR35) in the private sector have been deferred to 6 April 2021 in light of the outbreak.  Gender pay gap reporting has also been suspended, however, employers can still report if they wish to do so. 

For more information see our summary of the IR35 deferral.

Support for businesses

Significant temporary measures have been put in place to support businesses through the outbreak.  These include:-

• The Coronavirus Large Business Interruption Loan Scheme
• Corporate Financing Facility for larger firms
• Support for businesses paying tax: Time to Pay service

as well as measures specific to sectors such as nursery businesses and retail, hospitality and leisure businesses that pay business rates.  For more information see our overview of Coronavirus business support and the UK Government guidance COVID-19: support for businesses.