The British government brought in a new law last month which should provide some help and reassurance during the coronavirus pandemic. This article looks at the key changes and will help you to understand what effect this will have on employers or employees.
- Redundancy payments given to furloughed employees will be based on their full normal wage.
Any employees on furlough which are subsequently made redundant will now be protected by new legislation that came about in July 2020. This means that employees on furlough who receive statutory redundancy pay, notice payments or unfair dismissal compensation will have their redundancy calculated on their normal wage. This is instead of the wage they have been getting on furlough.
This is for employees which have been working for their employers for more than 2 years of continuous service. The business secretary Alok Sharma explained that the government is doing all that is possible to protect the incomes of the nation and is urging employers to do all they can to not make employees redundant.
Sharma hopes that this new legislation will provide some reassurance to workers and their families during these unprecedented times.
- Job retention bonus for those who have previously been on furlough – policy paper introduced.
The HMRC revealed a job retention bonus scheme in a new policy paper on the 31st of July. This was brought in to encourage employees to keep their furloughed staff on.
With the scheme, eligible employers can claim a payment of £1,000 for each eligible employee, in respect of who they made a claim under the CJRS, who also stays continuously employed through to the end of January 2021.
- Employers now risk breaking furlough rules with pension payments
Employers should be cautious when paying into their employee’s pensions, as they risk breaking the rules if they do not calculate the correct pension payments for furloughed employees. Your solicitors Chester can offer you advice for this.
- Sick pay regulations 2020
Amendments have been made to the statutory sick pay (ssp) (general) regulations 1982 to lengthen eligibility for ssp to cover people who must isolate for 10 days. This came into action on the 5th August 2020.
The past few months have been extremely concerning times for both employers and employees. These legislations, however, have come into action very quickly. It is very important that people understand things which they can or cannot do, and what they are now entitled to. If you are unsure, your solicitor can help by providing you with appropriate advice and guidance.
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