SYLO | Beyond HR. are pleased to provide you with our second quarterly employment law update for this year. Thank you for all your positive feedback following the last update, it was great to know that you found it of value.

Below you will find a summary of the key changes and updates that you should be aware of, through to June 2020. Naturally, being in the midst of a global pandemic, COVID-19 is a key feature of this update.

Should you wish to discuss any of the topics highlighted below and the impact and requirements for your business, please don’t hesitate to contact us.

1) COVID-19

As the UK, very gradually, begins to ease some of the lockdown restrictions, along with recent confirmation from the Government that those who cannot work from home should now talk to their employer about returning to work, this has meant a lot of careful planning required by employers.

a) Coronavirus Job Retention Scheme (CJRS)

During May the Chancellor announced changes to the CJRS, however, the scheme will remain in place until 31st October 2020 and therefore, furloughed workers can continue to receive 80% of their salary up to £2,500 per month until this date.

For employees who have not previously been furloughed, employers have until 10th June 2020 to place them on the CJRS before the scheme, in its current format, changes on 1st July.

From 1st July 2020 ‘Flexible Furlough’ is being introduced meaning employees will be able to work part time and be furloughed part time. Businesses will have the flexibility to decide how that will work in terms of time split i.e 2 days working, 3 days furloughed.

Government will continue to cover 80% of the employee’s salary up to the cap until 31st July.

From 1st August to 31st October Government will require employers to begin to cover some of the cost of the scheme.

Initially, from 1st August, employers will be required to cover employers National Insurance and Pension contributions, and can no longer reclaim them through the CJRS.

From 1st September, the Government will only reimburse 70% of salary so employers will be required to top up to 80% (or more depending on what the employer agreed with the employee).

From 1st October, the Government will only reimburse 60% of salary and employers will continue having to top up to 80% (or more) before the scheme closes entirely on 31st October 2020.

b) Annual Leave

The Government has announced it is allowing employees to carry over up to four weeks annual leave (the statutory leave element only) into the next two leave years. This will allow employees to spread out their holiday across a longer time frame and may allow businesses under particular pressure from the impacts of COVID-19 the flexibility to better manage their workforce.

Also note that the Government has now confirmed that employers can ask an employee to take holiday while on furlough, subject to the notice provisions, (twice as much notice as holiday)  although this must be paid at normal salary rates.

c) COVID-Secure Workplace

Where employees are unable to work from home, the Government have released new guidelines for employers by sector, which include health and safety measures and risk assessments to help employers safely reopen workplaces. It is imperative that these guidelines are followed carefully and measures are put in place prior to reopening. Failure to do so could result in penalties. It is understood that the HSE will be undertaking random spot checks on employers to ensure they are following safety guidelines and employees are able to report any H&S breaches or concerns to the HSE if employers do not rectify concerns raised internally. SYLO | Beyond HR. can provide a range of expert H&S Covid-Secure support for your business so, please do get in touch if you require any assistance.

d) Workforce Planning

Many businesses have been either directly or indirectly impacted by the Coronavirus pandemic and in some cases may be at a point that they need to consider making changes to the size and scope of their workforce in order to sustain and secure the future of the business. Each business is unique and, it is important that you carefully consider all options, and where possible, aiming to minimising the risk of redundancies. Our HR Advisory and Business Strategy team are on hand to talk through your circumstances and offer you expert guidance and support on these complex matters so, please don’t hesitate to get in touch.

2) BREXIT

It is easy to forget, given the global health crisis we find ourselves in, that the UK left the European

Union on 31st January. As an employer, you may employ workers from the EU or EEA countries or Switzerland. We must not forget that whilst EU workers will continue to have the right to live and work in the UK upon Brexit date until the end of 2020, there is a requirement that they will need to apply for ‘settled status’. Whilst it’s the responsibility of the individual and not the employer to make an application to the EU Settlement Scheme, it is advised that Employers be pro-active in checking in with any employees who may be affected to check in that they have taken action on this, to ensure continuity of employment will not be affected in the future. The deadline for applying is currently 30 June 2021. Further information can be found on the GOV.UK website or by following this link https://www.gov.uk/settledstatuseucitizensfamilies

3) RECENT CHANGES IN LEGISLATION

Whilst there is no immediate forthcoming legislation changes due in the next few months. We felt it important to recap on the key changes that came into force in April 2020 as follows. Should you require any support with updating your existing contracts, policies or processes to capture these then please do get in touch.

            a)         Holiday/Annual Leave for casual or seasonal workers

The Government lengthened the reference period for determining an average weeks’ pay from 12 weeks to 52 weeks from 6 April 2020. This impacts those who employ casual or seasonal workers in respect of calculating their annual leave entitlement.

            b)         Issuing of Employment Contracts

Effective from 6th April 2020 all ‘workers’ and employees must receive a statement of ‘written particulars’ (an employment contract) on their first day of employment. Previously employers had up to two months to issue.  Employers will also be required to provide additional information in the written statement, to include:

  • The end date of a fixed term contract
  • Details of eligibility for sick leave and pay, and details of any other type of paid leave
  • The duration and conditions of any probationary period
  • Details of any further benefits and remuneration (not just salary) including health insurance, lunch etc
  • Any training entitlement provided by the employer and any training which is required, which the employer will not fund.

Ideally you should issue a contract to a new employee prior to their start date so you can ensure you have a copy which is signed and dated on or before their first day. This might mean that you need to review your induction processes.

c) Parental Bereavement Leave and Pay

On 6 April 2020, the Parental Bereavement (Leave and Pay) Act 2018 came into force.

The Act gives employees who lose a child under the age of 18, or suffer a stillbirth from the 24th week of pregnancy, the right to two weeks’ leave as a ‘day one’ employment right. The leave, which can be taken as one block or as two, one week blocks, will be paid at the same statutory rate as other family-friendly rights if the employee has 26 weeks’ service.  Employers who offer other enhanced family-friendly pay arrangements may however wish to offer an enhancement to Parental Bereavement Leave.

The leave will be available during the first year after the child’s death.

Employed parents are already entitled as a day one right to take a reasonable amount of unpaid time off to deal with emergencies involving a dependent, including dealing with a dependent’s death.

As an employer, you should ensure that this new Act is incorporated into your policies/Handbook if you have not already done so. SYLO | Beyond HR. can assist you with this.

4) IR35 PROPOSED TAX REFORMS

Please note, the proposed IR35 reforms have been delayed for a year due to the Coronavirus pandemic.

And finally……

 As a valued client, we would like to continue to keep you updated regularly on key topics which we feel would be of interest to you and your business, for example COVID-19 implications for employers, details of our online training programmes and our quarterly Employment Law round-up. Should you not wish to receive these updates then please let us know.

We would like to take this opportunity to thank you for your continued support.

Keep safe and well.