@deliver_els, Author at Employment Law Services (ELS) LTD

Workplace Redundancies – What Every Employer Should Know

Posted on 19 August 202012 June 2023 by @deliver_els

The coronavirus pandemic has had a severe impact on the economy and it is inevitable that redundancies will be on the rise, but getting this wrong could prove costly for Employers.

Workplace Redundancies – What Every Employer Should Know

The Legal Definition of redundancy

Redundancy is defined as circumstances where the termination of employment is attributable to the fact that the employer has ceased, or intends to cease, to carry out business for the purposes of which the employee was employed.

If a business no longer requires work of a particular kind, then employees whose role it is to carry out that particular work could reasonably be dismissed by way of redundancy.

Where work of a particular kind had ceased, or is expected to cease or diminish then this can also lead to redundancy.

Consultation

An employer with more than 20 staff at risk of redundancy in one workplace has a legal obligation to consult with staff at least 30 days before any staff are dismissed.

Consultation and notice are completely separate. Consultation should cover the reasons for the proposals to make redundancies, identification of the job groups at risk and the number of staff who are likely to be covered by the proposals.

The employer should also identify the selection criteria being used to score the staff who are at risk. Timescales for the procedure and proposed termination dates should also be put to staff. Where there are 99 staff or more in one workplace consultation should begin at least 45 days before the proposed date of any dismissal, however the employer can chose to consult over a longer period should they wish to do so.

The consultation specifically should consider ways to avoid the redundancy, ways to minimise the number of staff being made redundant and ways to mitigate the impact of the dismissal.

It may seem strange, from an employer’s perspective, that there is a legal obligation to look at ways of avoiding the dismissals as part of the consultation process. However, in reality, staff on ground level can sometimes suggest better working practices which allow the number of staff being dismissed to be minimised.

Staff can mitigate the impact of the dismissal by using the consultation period to apply for another job.

As well as collective consultations, which take place through trade union representatives and workplace representatives, staff should also be offered individual consultations.

Failure to consult properly can leave the employer exposed to the risk of a protective award claim. Any employee who is made redundant without proper consultation can claim a protective award of up to 13 weeks’ pay, if 20 or more staff were made redundant in the same workplace.

How should an employer deal with redundancy?

There are certain steps that an employer must take before they decide to make anyone redundant.

They then need to identify a suitable pool for selection. The employer can identify the pool by identifying which jobs groups it needs to consider cutting head count in.

Depending on the nature of the business, it can be as easy as identifying a particular group of worker. However, the employer must carefully consider whether other staff who do not technically fall within the same job group should be included in the pool.

For example, interchangeable roles, or roles in different parts of the business which are broadly similar.

A selection criteria should be used to look at various elements of an employee’s work history and performance. The selection criteria should be reasonable and objective. It can include elements such as disciplinary record, skills and qualifications, time keeping, absence levels and suitability to carry out future work demands for the employer.

The scoring should be used objectively, and not just as a tick box exercise.

It is important that the scoring is applied in a way that does not discriminate against the individual being scored. For example, time spent on maternity leave should not be recorded as an absence which brings the scoring down. Similarly, any absence which is related to a disability should not be included.

The employer should be mindful of using scoring criteria which might cause indirect discrimination. For example, using length of service as a scoring criteria might be discriminating against younger members of staff are are likely to have shorter service. As such, an approach of last in, first out should can leave an employer exposed to the risk of a discrimination claim.

Notice Periods

Notice periods are sometimes set out in an individual’s contract of employment. However, in the absence of this statutory notice periods would apply. These are as follows:

1 month – 2 years’ service – 1 weeks’ notice
2 years’ service or more – 1 weeks’ notice for each year of service, capped at a maximum of 12 weeks.

Notice is separate from consultation and the employer must have started the consultation process before they can serve notice. The employee should either be allowed to work up until the end of their notice period or should be paid in lieu of notice.

Redundancy Pay

Statutory redundancy pay has to be paid to all employees who made are redundant after been employed for 2 years or more. Staff who have less than 2 years’ service are not entitled to a statutory redundancy payment.

Statutory redundancy pay should be paid based on an employee’s individual weekly pay rate and is capped at a maximum of £538 per week. The weekly entitlement amount for each full year of service are as follows:

0.5 weeks’ pay for each year of service, for staff aged 22 and under
1 weeks’ pay for each year of service, for staff aged 22-41
1.5 weks’ pay for each year of service, for staff aged 41 and over

Statutory redundancy pay is capped at 20 years’ service.

An individual’s contract of employer might give them the right to an enhanced redundancy payment, which is more generous than the statutory amount. If this is the case, the employer must make the redundancy payment based on the contractual amount.

Other payments

Employees being dismissed by way of redundancy are entitled to any accrued but untaken holiday pay which is due at their termination date.

They are also entitled to receive their normal salary up until their termination date.

Employees who do not receive all of the payments that they are entitled to can pursue a claim for unlawful deduction of wages in the Employment Tribunal.

Is redundancy always fair?

Redundancy is a form of dismissal and if it isn’t considered correctly it can give rise to a claim for unfair dismissal or a discrimination claim.

Employment Tribunals are generally of the view that scoring criteria must be objective and can’t be scoring should not be reached in a haphazard way. An employer really needs to be able to justify each score for the individual employee.

Any scoring criteria which unfair or unreasonable in a way which is glaringly obvious will most likely be criticised by an Employment Tribunal.

However, what the Employment Tribunal won’t do is make any kind of judgment on what the employee, or others who they compare themselves to, should have scored. It is not the role of the Tribunal to say that one employee should have been made redundant instead of another.

Where an Employment Tribunal makes a finding of unfair dismissal or discrimination the employee is likely to be awarded compensation.

Time Limits

The time limits for making a claim in the Employment Tribunal are 3 months, minus a day, from the date that you are made redundant, the date that you did not received a payment you were owed, or the date of any act of discrimination.

Support for Employers

The COVID-19 pandemic and associated furlough scheme continues to present numerous and complex challenges for Employers.

If you are an Employer and require advice and support on extending full furlough, introducing flexible furlough, or are contemplating a restructure/reorganisation and/or redundancies as a result of the ongoing COVID 19 restrictions, call us now on 0800 612 4772 or Contact us via our website and we will set out clear options for you to help ensure you comply with your legal obligations.

Advice on Settlement Agreements

Posted on 10 August 2020 by @deliver_els

If you find yourself in a situation where you have been advised by your employer that they want to bring the employment relationship to an end and are issued with a Settlement Agreement and told that you have a set timescale in which to make a decision, the team at Employment Law Services (ELS) can help you.

What is a settlement agreement?

A settlement agreement is a mechanism which can lawfully be used to terminate an individual’s employment. A settlement agreement is essentially a contract which ends terminates an employee’s employment. Under the terms of the settlement agreement the employee will be offered a sum of money and will agree to give up certain rights in exchange for that sum of money.

Why Are Settlement Agreements Offered?

Settlement agreements can be offered under various circumstances. Some employers will offer a settlement agreement as standard when making an employee redundant. Employees who are going through disciplinary proceedings or grievance procedure can be offered a settlement agreement. Sometimes circumstances, such as a clash of personalities or the breakdown of a working relationship are enough to terminate an individual’s employment by way of settlement agreement.

The main reason for the employer to offer the settlement agreement is to cover themselves against the risk of an employee bring a claim against them, by essentially buying out the employees right to pursue a claim.

While a settlement agreement can be offered in circumstances where the employer might be at risk of facing an employment tribunal claim, a settlement agreement can also be used simply to get rid of a problematic employee.

What are Protected Discussions?

Settlement discussions should be conducted on the basis of a ‘without prejudice’ discussion, which is sometimes referred to as a protected discussion. At this discussion the employer does have to conduct themselves in a reasonable manner and cannot force or put pressure on the employee to take the settlement agreement.

The employer should not conduct the discussion in a way which discriminates against the employee. Any discriminatory behaviour, or improper behaviour, can result lead to a claim against the employer.

An employer should not assume that everything said at a protected discussion is “protected” in the sense that it won’t come back to bite them in the form of an employment tribunal claim. Any improper conduct or discrimination might lead to the employee deciding to resign and bring a claim for constructive dismissal.

If the employer suggests during discussion that the employee is likely to be dismissed if they don’t accept the settlement and go ahead with any disciplinary, then there is a real possibility that the employee can show that their dismissal was predetermined.

What’s In A Settlement Agreement?

The settlement agreement will normally have a list of all possible employment tribunal claims that an employee could bring. As well as that some employers might try to cover unrelated matters or future claims. An employee cannot reasonably be expected to sign away rights to future claims, for example a latent personal injury claim for an employee working with asbestos will potentially be a valuable claim for an illness that presents itself later in life. Similarly, a miscalculated pension which might become apparent once an employee cannot be covered by a settlement agreement.

Appeals Courts have taken the view that the inclusion of wording such as “full and final settlement” and “settlement of all claims” is simply not the catch all approach that the drafting Lawyer would want it to be.

However, the average employee is unlikely to be able to afford an to bring an appeal in the Appeal Court and it is much better to get proper advice on any settlement agreement that you have been offered before signing.

Fixed Fee Advice On Settlement Agreements

At Employment Law Services (ELS) our experts can offer fixed rate detailed advice on your settlement agreement. We can negotiate a settlement which protects your rights and ensures that you get the highest possible settlement. There are no set rules on what an employee should be paid under their settlement, however we can offer a free assessment and advice you on how much we think your settlement should be.

Contact Us Today

If you have been offered a Settlement Agreement by your employer, call us on 0141 611 9785 or Book a Free Consultation now.

New Quarantine Restrictions on Entering the UK

Posted on 7 August 20209 June 2023 by @deliver_els

Last week the Government warned against non essential travel to Spain and imposed a 14 day quarantine period on holiday makers returning to the UK. Yesterday Belgium, the Bahamas and Andorra were also added to the list. For many people this has meant cutting their existing holiday short or cancelling their holiday altogether.

New Quarantine Restrictions on Entering the UK

Some of those returning home are now faced with the dilemma of telling their employer that they cannot return to work for the next two weeks. So, what happens to employees who find themselves in this situation?

Those who are fortunate enough to have jobs which allow them to work from home should be able to do so. It is still the case that staff should be allowed to work from if they are able to do so.

What is important is that employees returning from any of these countries do not attend their workplace. They face a criminal fine if they break the quarantine rule. It is important that employers do not force, or unduly pressure staff to break quarantine and return to work. Any employer who does that will be asking their employee to commit a criminal offence and also putting other staff, and customers of the business, at risk

What Are The Options?

Where employees are not in a job that allows home working, the employer has a number of options open to them.

The employer can choose to allow the employee simply to extend their period of annual leave by an addition 14 days. In reality this can only work if the employee has enough annual leave remaining to allow them to do that.

However, the employer has to consider the impact that this might have on their business. Allowing an employee to be away from the workforce is likely to put a strain on other members of staff and could impact on other members of staff. It might be the case that other members of staff are due to go on holiday and their leave period could be impacted by the absence of the employee who has to quarantine. In a small business granting additional leave for a quarantine period is likely to impact on the business.

An employment contract is one of performance, so if an employee cannot perform their job then strictly speaking they should not get paid. However, an employee who is forced to quarantine under Government imposed regulation should be given special consideration by the employer.

If an employee cannot be offered additional paid leave to cover the quarantine period then the employer should seriously consider allowing a period of special leave. Most contracts of employment are unlikely to set out provision on special leave. However, it is within the discretion of every employer to allow special leave.

In the unprecedented time that we find ourselves in it, all reasonable employers should consider special leave for employees who are forced to quarantine.

It is up to the employer’s discretion as to whether a period of special leave should be paid. Special leave can be paid in full, based on the employee’s normal pay, paid on part or completely unpaid. Employers can chose to treat a quarantine period as a mixture of annual leave and special leave.

While an employee who is on special unpaid leave might not be paid for the time that they have to quarantine, the important thing is that the leave is authorised by the employer.

If an employer unreasonably refuses to grant a special period of authorised leave, then they are likely to face challenge from the employee or the employee’s trade union. Given that the reason for the quarantine is Government guidance the employee cannot be expected to break the quarantine because their employer has unreasonably refused their request.

If an employer does refuse to allow authorised leave, then the employee is exposed to the risk of being disciplined for not attending work. The outcome of any disciplinary action could be dismissal. In particular, an employee who already has been disciplined due to unreasonable absence levels could be at risk of dismissal if their employer refuses to authorise their leave period. An employee in the circumstances with more than 2 years’ service would be entitled to pursue an unfair dismissal claim in the Employment Tribunal.

An employee who is refused authorised leave, whether it be in the form of extended annual leave or special leave might be entitled to resign in response to the employer’s refusal and bring a claim for constructive dismissal. An employee with two years’ service might be entitled to pursue a claim for constructive dismissal in the Employment Tribunal.

For employees who are due to travel to any of these countries, it is important that they discuss any impending travel plans with the employer before they decide to go on their holiday. It is important that the employer is given a fair opportunity to decide whether they can accommodate the quarantine period.

It might be reasonable for an employee and employer to reach agreement on whether the employee should travel. The employer cannot force the employee to cancel their holiday, however they can give withdraw the employee’s annual leave authorisation.

Any authorised holidays can be withdrawn as long as the employer gives notice of the same length of time as the holiday would have been. An employer could cancel a seven day holiday by given notice seven days before the employee’s holiday is due to start.

If an employee still insists on going on holiday after their holiday authorisation has been withdrawn then they will be treated as having an unauthorised absence. This is likely to lead to disciplinary action being taken and could lead to dismissal.

Support for Employers

If you are an employer and need advice regarding how to deal with staff who have to quarantine, call us now on 0800 612 4772 or Contact us via our website

Support for Employees

Employees have three months, minus a day, from the date of any action by the employer to lodge a claim in the Employment Tribunal. If you would like a free consultation call us now on 0800 612 4772 or Book Now via our website .

Employment Law Services (ELS) builds upon its talented workforce with two new key appointments

Posted on 1 August 202012 June 2023 by @deliver_els

We are delighted to announce two key appointments as part of our continued expansion strategy.

Employment Law Services (ELS) builds upon its talented workforce with two new key appointments — Priya Cunningham

Based at our Glasgow offices, Priya Cunningham and Naomi Scrimshire join our multi-award-winning Employment Law Team on 3 August 2020 and will help us to continue to exceed client expectations and deliver service excellence across a full range of employment law and HR matters.

Priya is an accomplished litigator with over twelve years’ experience at both the Employment Tribunal and Appeal Courts, including acting as the lead agent in the landmark case of North – v – Dumfries & Galloway Council.

Naomi is a proficient HR and ER specialist with over six years operational experience providing advice and support to Directors and Senior managers across a range of contentious and non-contentious employment related matters to mitigate risk and protect businesses from costly employment tribunal claims.

Both will use their experience and expertise to advise clients on a full range of employment law and HR matters and add increased capacity and capability to our existing service offering to both employers and employees.

Information on the Reopening of our Offices on a Limited Basis

Posted on 18 July 20209 June 2023 by @deliver_els

As lockdown measures are gradually being eased, we are delighted to announce the reopening of our offices from Tuesday 4 August 2020 and will resume seeing new and/or existing clients strictly on a pre-booked appointment only basis from that date.

Information on the Reopening of our Offices on a Limited Basis — Employment Law Services (ELS) – Offices Reopening

We are phasing the return of staff to our offices, whilst ensuring health and safety for both our clients and our staff and have carried out comprehensive risk assessments to protect both employees and clients. Social distancing measures will be in place.

When attending our offices, please sanitise your hands when you arrive, before your meeting. You can either bring your own, or we have hand sanitiser available in our reception areas for your use. If you feel more comfortable wearing a mask, that is entirely your choice – please wear whatever makes you feel more reassured and confident during your visit.

For clients who require an appointment but who would prefer not to attend our offices, you can instead book a telephone consultation using the link below.

Book a Consultation Now

HMRC Update on Furlough Scheme & Notice Periods

Posted on 17 July 20208 June 2023 by @deliver_els

The confusion and concern created by Paragraph 2.2 of the third iteration of the Treasury direction, which stated that a claim should only be made where the payment will be used to continue employment, has hopefully been alleviated by HMRC after this morning’s update to the guidance.

HMRC Update on Furlough Scheme & Notice Periods

Background

We recently highlighted that the third Treasury direction appeared to introduce a new requirement which is arguably designed to prevent the use of CJRS funds in this type of situation. Paragraph 2.2 states that a claim should only be made where the payment will be used to continue employment. This suggested that it would be contrary to the purpose of the scheme to use the funds where employment has been terminated and the employee is working under notice.

Accordingly, we advised caution and recommended that Employers intending to use CJRS funds to pay employees working under notice should contact HMRC for guidance and advised against doing so unless or until they receive confirmation from HMRC that they can.

Latest HMRC Guidance

Well, in yet another update from HMRC it has this morning updated its guidance to remove any uncertainty. The relevant passage now says: “You can continue to claim for a furloughed employee who is serving a statutory or contractual notice period, however grants cannot be used to substitute redundancy payments.”

This further clarification from HMRC will be warmly welcomed by Employers who were deeply concerned about the financial impact of having to fund 100% of notice pay to those employees who were serving their statutory or contractual notice.

We anticipate that the Treasury direction will soon be updated to reflect this latest guidance, but in the meantime Employers can take comfort from this morning’s update from HMRC and continue to claim for furloughed employees who are serving their notice period with confidence.

As we have been doing from the outset of the COVID-19 crisis, we will continue to monitor developments, digest and interpret the guidance, and keep you updated to ensure you remain informed.

Support for Employers

CJRS: Claiming for Employees Serving Their Notice

Posted on 9 July 20207 June 2023 by @deliver_els

Although the CJRS has now been extended to 31 October 2020, the government has made it clear that it will expect employers to make a financial contribution towards furloughed employees’ furlough pay from 1 August 2020. Furloughing employees beyond that date will therefore come at a cost to employers and many are considering whether they can afford to retain all employees going forward.

CJRS: Claiming for Employees Serving Their Notice

There may therefore still be fair reasons for employers to make furloughed employees redundant despite the extension of the scheme but the latest (third) Treasury direction appears to introduce a new requirement which is arguably designed to prevent the use of CJRS funds.

Can an employer make employees on furlough redundant?

We have confirmed in previous bulletins that the Employees’ CJRS guidance states that an employee can be made redundant while on furlough or afterwards, and that an employee’s redundancy rights will not be affected by being furloughed. However, an employer cannot claim reimbursement of redundancy payments under the scheme (Employers’ CJRS guidance).

The position in respect making furloughed employees redundant and not being able to claim reimbursement of redundancy payments under the scheme has not change, but the latest (third) Treasury direction appears to introduce a new requirement which is arguably designed to prevent the use of CJRS funds to pay employees working under notice.

Claiming through the CJRS for redundant employees

Although the guidance seems to confirm that a furloughed employee may be made redundant, there has been criticism of employers that have taken this approach. The aviation minister, Kelly Tolhurst, suggested in response to British Airway’s decision to dismiss employees on furlough that the Treasury should review the CJRS to ensure that it is not used to pay the wages of employees on redundancy notice (although the criticism may have been based on the fact that it appears that the dismissals were with a view to offering new roles with inferior terms).

On 29 June 2020 the Secretary of State for Work and Pensions expressed similar concern about the use of CJRS funds as a means of paying wages without an intention to keep the relevant employees employed.

The third Treasury direction appears to introduce a new requirement which is arguably designed to prevent the use of CJRS funds in this type of situation. Paragraph 2.2 states that a claim should only be made where the payment will be used to continue employment. This suggests that it would be contrary to the purpose of the scheme to use the funds where employment has been terminated and the employee is working under notice.

The schedule to the third Treasury direction states that the previous Treasury directions continue to have effect subject to the modifications in the schedule. It appears that the Third treasury direction is intended to have retrospective effect, although this is not entirely clear.

Employers may take some comfort from the comments of the Financial Secretary to the Treasury on 8 July in response to a question in Parliament on this issue. He responded that employers are permitted to continue to claim under the scheme for a furloughed employee where they are serving their notice period. However, this is not reflected by the wording of the third Treasury direction and has not been expressed in writing by HMRC or the government.

Whereas previously and based on the earlier iterations of the Treasury direction, we would have been comfortable advising Employers that they could continue to claim under the scheme for a furloughed employee where they are serving their notice, we would now, in light of the latest (third) Treasury direction, recommend that Employers intending to use CJRS funds to pay employees working under notice should contact HMRC for guidance and would advise against doing so unless or until they receive confirmation from HMRC that they can.

Support for Employers

Flexible Furlough – New Treasury Direction Published

Posted on 2 July 20208 June 2023 by @deliver_els

The Chancellor has produced a third iteration of the Treasury Direction in relation to the Coronavirus Job Retention Scheme (CJRS) and this was published on Friday 26 June 2020. The new Direction sets out the rules that will apply under the amended CJRS from 1 July 2020, which allows for ‘flexible furlough’ arrangements, until 31 October 2020, when the scheme ends.

Flexible Furlough – New Treasury Direction Published

Third Treasury Direction on the UK Coronavirus Job Retention Scheme

The updated Treasury Direction which legally underpins the Coronavirus Job Retention Scheme (CJRS) and which can be read here, sets out the rules that will apply under the amended CJRS from 1 July 2020. The new rules allow for ‘flexible furlough’ arrangements, until 31 October 2020, when the scheme ends. In summary the Treasury Direction largely reflects the recent Guidance and clarifies a number of points:

Flexible furlough

From 1 July to 31 October, employers are permitted to use the CJRS flexibly. This means the scheme enables part-work/part-furlough. Employers can claim under the scheme for time furloughed and will have to pay employees normally for time spent working.

Cut-off dates

The new Direction confirms that the cut-off date for making claims under the original CJRS, as set out in the previous Directions and in force until 30 June, is 31 July.

It also confirms that a business will only be able to participate in the amended CJRS that applies from 1 July if it has made a claim under the original scheme by 31 July in respect of an employee who has been furloughed for a minimum of three weeks beginning on or before 10 June.

From 1 July, the scheme is changing from month to month. Although more than one claim can be made in a month, a claim must start and end within the same calendar month and must relate to seven or more consecutive days. An exception to the seven-day claim period is made for “orphan periods” at the beginning or end of a month.

Maximum number of employees you can claim for

The number of employees who can be claimed for post 1 July cannot exceed the maximum number in any one claim made for furlough periods prior to 1 July – the new Direction refers to this as the “high-watermark number”.

Exceptions to 10 June cut-off and “high – watermark number”

The new Direction confirms the exception to the 10 June cut-off and the “high-watermark number” for family leave returners and armed forces reservists. There is a similar exception where a TUPE transfer takes place after 10 June 2020, in relation to transferring employees who were furloughed by the transferor under the original CJRS (but who cannot satisfy the 10 June cut-off as regards the transferee). The Direction confirms that the number of these previously-furloughed, transferring employees is added to the transferee’s cap in the same way as “returning employees”.

Financial support for employers

The financial support for employers will not change until 1 August 2020. From 1 August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

From 1 September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

From 1 October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Requirement to reach an agreement on flexible furlough

In our previous bulletin, analysing the recent Guidance on flexible furlough, we referred to the fact that the Guidance is not clear whether the agreement to flexible furlough needs to be full written agreement with employees as opposed to written confirmation / letter as has been applicable for full furlough.

The new Direction confirms the requirement to reach agreement on flexible furlough arrangements but says that the agreement only needs to be confirmed in writing by employers (which may be in electronic form such as an email). Therefore, any flexible furlough arrangements require communication and letters/ emails to employees to evidence agreement. A record of the agreement must be retained by the employer until at least 30 June 2025. As with full furlough, the agreement for flexible furlough can be by means of a collective agreement.

Employers should note that there is a new requirement that the agreement must have been made before the beginning of the period to which the CJRS claim relates – and must not be made retrospectively. However, the Direction confirms that an agreement can subsequently be varied.

Calculating wages

The Direction provides various examples of how to calculate employee wages based on usual hours and hours worked, to determine how much can be claimed under the CJRS.

The requirements are not straightforward and will have to be worked through carefully especially if the claim period does not align with a calendar month. To align with a calendar month, a furlough period may have to start mid-week. In all other cases (for example, if a furlough period started on Monday 6 July), the complex flexible furlough calculations will have to be undertaken. The government has worked through some examples and has updated its calculator on the gov.uk website to assist with hours calculations to claim the CJRS grant.

If you are considering bringing back your workforce part-time, we recommend you start planning and discussing with employees as soon as possible. Bear in mind that some employees will have childcare issues and others may be shielding or live with someone who is shielding. The government expects employers to be understanding and flexible with employees in these situations.

Purpose of CJRS / redundancy

One point on which urgent clarification is being sought is that the new Direction now says that the purpose of the CJRS is to “continue the employment of employees” which begs the question can it be used to pay notice pay or any costs associated with termination of employment? This new wording appears to contradict the Employee Guidance on the CJRS which still states, “your employer can still make you redundant while you are on furlough”. HMRC have apparently referred this question to a specialist team.

This is clearly of significance to some employers who are presently exiting people or are planning to and we will of course keep it under review.

Support for Employers

Details of Flexible Furlough Scheme Released

Posted on 15 June 20207 June 2023 by @deliver_els

On Friday night HMRC released details of the flexible furlough scheme. The most significant change is that the minimum three-week period for furlough has been removed (as of 1 July 2020). There is no minimum period, although any claim through the CJRS portal must be in respect of a minimum one-week period (i.e. employers can only put in four claims a month, not 31).

Details of Flexible Furlough Scheme Released

The details were released in two ways; the existing guidance was updated, and three new pieces of guidance were released. It would be fair to say the way this update was released was far from helpful.

In summary, the key take-aways from the latest guidance are as follows:

There are no changes to grant levels in June.

From 1 July, employers can bring furloughed employees back to work for any amount of time and any shift pattern, while still being able to claim CJRS grant for the hours not worked.

From 1 August 2020, the level of grant will be reduced each month. To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they are being furloughed.

For June and July, the government will pay 80% of wages up to a cap of £2,500 for the hours the employee is on furlough, as well as employer National Insurance Contributions (ER NICS) and pension contributions for the hours the employee is on furlough. Employers will have to pay employees for the hours they work.

For August, the government will pay 80% of wages up to a cap of £2,500 for the hours an employee is on furlough and employers will pay ER NICs and pension contributions for the hours the employee is on furlough.

For September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

For October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

The timetable for changes to the scheme is set out below. Wage caps are proportional to the hours an employee is furloughed. For example, an employee is entitled to 60% of the £2,500 cap if they are placed on furlough for 60% of their usual hours. The table shows Government contribution, required employer contribution and amount employee receives where the employee is furloughed 100% of the time.

** Wage caps are proportional to the hours not worked **

	July	August	September	October
Government contribution: employer NICs and pension contributions	Yes	No	No	No
Government contribution: wages	80% up to £2,500	80% up to £2,500	70% up to £2,187.50	60% up to £1,875
Employer contribution: employer NICs and pension contributions	No	Yes	Yes	Yes
Employer contribution: wages	–	–	10% up to £312.50	20% up to £625
Employee receives	80% up to £2,500 per month	80% up to £2,500 per month	80% up to £2,500 per month	80% up to £2,500 per month

The Coronavirus Job Retention Scheme will close on 31 October 2020.

For more details, Employers can:

Check if they can claim (original employer guidance doc – – UPDATED

Check which employees they can put on furlough guidance doc – – UPDATED

Steps to take before calculating a claim using the CJRS – – NEW

Calculate how much they should claim – – NEW

Claim for their employees’ wages online – – UPDATED

Report a payment in PAYE RTI – – UPDATED

Part-furlough worked example – – NEW

Long list of worked examples – – UPDATED

Support for Employers

The COVID-19 pandemic and associated furlough scheme continues to present numerous and complex challenges for Employers.

If you are an Employer and require advice and support on the various steps you need to take to end furlough, call us now on 0800 612 4772 or Contact us via our website and we will set out clear options for you to help ensure you comply with your legal obligations.

Parents returning to work after extended leave eligible for furlough

Posted on 11 June 202012 June 2023 by @deliver_els

The Chancellor has announced that parents on statutory maternity and paternity leave who return to work will be eligible for furlough scheme even after 10 June cut-off date.

Parents returning to work after extended leave eligible for furlough

We confirmed yesterday that Employers who had not already furloughed a member of staff who they may want to furlough in the future had until yesterday (10 June 2020) to do so in order for the current three-week furlough period to be completed by Tuesday 30 June.

Today (11 June 2020) we can confirm that the Chancellor has announced that parents on statutory maternity and paternity leave who return to work in the coming months will be eligible for furlough scheme even after 10 June cut-off date.

This will only apply where they work for an employer who has previously furloughed employees and to people on adoption leave, shared parental leave, and parental bereavement leave.

Chancellor of the Exchequer Rt Hon Rishi Sunak MP said:

“When I announced these changes to the furlough scheme last month, I was clear that we wanted to do this in a fair way, that supports people back to work as the country begins to re-open following coronavirus.

But for parents returning from leave, their circumstances has meant that they are still in need of support, and I’m pleased that they will be able to receive the financial assistance they and their family will need.”

As we have confirmed previously, the Coronavirus Job Retention Scheme (CJRS) has been extended until October, with new flexibilities introduced from 1 July to support the economy by allowing furloughed employees to return to work part-time.

More details of the change will be included in updated guidance, published on 12 June.

Support for Employers

The COVID-19 pandemic continues to present numerous and complex challenges for Employers. With various other changes to the Furlough Scheme due to come into effect from 1 July, Employers should be seeking professional advice to ensure they understand their options and implement their preferred actions effectively and legally.

If you are an Employer and require advice and support on the various steps you need to take to end furlough, call us now on 0800 612 4772 or Contact us via our website and we will set out clear options for you to help ensure you comply with your legal obligations.