Furlough Changes, Holidays and SSP

Dear Members,

Please see HR update below. Info from Parallel HR

Nick

The Job Retention Scheme

The Government’s Job Retention Scheme (furlough) has proved to be a valuable lifeline to many businesses. Unsurprisingly, the Scheme cannot go on in its original form for ever, therefore changes are on the horizon.

Flexible furlough
With effect from 1 July 2020, employers will be able to bring employees back from furlough on a part-time basis. You will need to pay them their normal wages for the hours they work and will be able to claim a furlough payment for their remaining normal working hours.

Changes in payment levels
The scheme will continue with the Government paying 80% of salary, up to a maximum of £2,500 per month, until 31 July 2020. Thereafter, for employees who remain on furlough full-time, the following changes will be made [I presume that for those returning part time, the amounts will be pro-rata]:

From 01-31 August 2020
Government pays: 80% of wages up to £2,500 per month
Employer pays: Employer’s National Insurance contributions and pension contributions

From 01-30 September 2020
Government pays: 70% of wages up to £2,187.50
Employer pays: 10% of wages up to £312.50 plus Employer’s National Insurance contributions and pension contributions

From 01-31 October 2020
Government pays: 60% of wages up to £1,875
Employer pays: 20% of wages up to £625.00 plus Employer’s National Insurance contributions and pension contributions

Some important dates
10 June 2020 – last date to furlough any new staff members
31 July 2020 – last date to make any claims for the period to 30 June 2020
31 October 2020 – Job Retention Scheme ends

Holidays – plan now how to spread them

As things are slowly starting to ease, I know many of you are wondering what to do about holiday entitlement. You can require people on furlough to take holiday, as long as you give them twice as much notice as the amount of time you require them to take off as leave. Any holiday taken during furlough must be paid at 100% of normal salary.

Employees can carry over up to 20 days’ annual leave (must be used within two years) if they have not reasonably been able to take holiday due to COVID-19. This could be because they were on furlough or because they were too busy.

Reclaim Statutory Sick Pay

The Statutory Sick Pay rebate scheme has now launched. Those that employ less than 250 employees will be able to claim a rebate for up to two weeks’ Statutory Sick Pay, where this was paid to employees due to COVID-19. This includes employees who were ill, self-isolating or shielding who were not furloughed.

No rebate is due for employees who were off ill for any reason unrelated to COVID-19.

Information Supplied by Parallel HR

debbie@parallelhr.co.uk
01438 870544, 07815 622761

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