By Nic Hart
Further to our earlier blog posts on this topic, please be reminded that the Coronavirus Job Retention Scheme (CJRS) is closing to new entrants from 30 June 2020. You must furlough new entrants on or before 10th June.
From 1 July 2020, there will be a new flexible furlough scheme where furloughed employees will be able to return to work on a part-time basis. Full guidance has yet to be issued (proposed for 12 June 2020) but present Guidance has advised that only employees who started furlough on or before 10 June 2020 will be eligible for the new scheme.
The Government Guidance states;
“From this point onwards, employers will only be able to furlough employees that they have furloughed for a full 3-week period prior to 30 June”
Continue reading “IMPORTANT COVID-19 UPDATE: UK Gov Furlough Scheme Cut Off -10th June”
By Nic Hart
In the daily press conference on Friday May 29th 2020, the Chancellor Rishi Sunak, announced further changes to the Coronavirus Job Retention Scheme.
In essence these are as follows:
- The CJRS will continue until October 2020.
- Flexi furlough will commence from July 1st 2020.
- Grants through the CJRS will be tapered from August 2020.
- The scheme will close to new entrants on 30 June.
This is commencing on July 1st 2020 -a month earlier than previously announced. Employers can decide the hours and shift patterns their employees will work on their return to work, so that they can decide on the best approach for them. Employers will be responsible for paying the employees’ wages while in work.
Further guidance on flexible furloughing and how employers should calculate claims will be published on 12th June 2020, but HMRC has provided some initial advice:
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
Continue reading “COVID-19: UK Chancellor Announces Changes To Furlough Scheme – 29th May 2020”
By Linda Crow
Last week the UK government introduced the Corporate Insolvency and Governance Bill in Parliament.
The main objective of the Bill is to provide businesses with the flexibility and space needed to continue to trade during this difficult time caused by the COVID-19 pandemic. That said, the provisions around the new moratorium and the new restructuring plan proposal have been under consideration for a few years.
The Bill’s measures can be split into three categories:
- Those that provide greater flexibility, allowing companies protection from creditor action and safeguarding supplies whilst it explores options for rescue.
- Temporary suspension of parts of insolvency law to support directors continuing to trade during the crisis without threat of personal liability and to prevent aggressive creditor action.
- Temporary extension of certain times for filing documents at Companies House and temporary relaxation of strict compliance with constitutional requirements relating to corporate meetings (including AGMs).
The insolvency measures are: Continue reading “Prompted By COVID-19: The UK Government Introduces Corporate Insolvency & Governance Bill”
By Sam Pearse
On 20 April the United Kingdom’s Chancellor of the Exchequer announced that the UK Government would launch the Future Fund as part of the British Business Bank Coronavirus Business Interruption Loan Scheme. The Future Fund is intended to provide support to the UK’s innovative companies with good potential, for which we might read start-ups, growth companies or emerging companies. The Future Fund was launched on 20 May. This alert summarises the scheme, eligibility and the application process.
What financing is available?
Continue reading “Covid-19: The Future Fund for Financing of Innovative UK Companies”
By Linda Crow
On 14 May 2020, the UK Government extended the temporary suspension of wrongful trading liability until 30 June 2020.
On 28 March this year, the Government announced that it would “at the earliest opportunity“ introduce legislation, retrospective to 1 March 2020, to relax the insolvency rules which can make directors of limited liability companies potentially liable if they continue to trade and incur liabilities when they knew or ought to have concluded that there was no reasonable prospect of avoiding an insolvent liquidation or administration.
The relaxation of the wrongful trading rules is to give directors confidence to do all that they can to continue trading during the pandemic emergency, knowing that they have no threat of personal liability should the company subsequently fall into an insolvency procedure.
The current laws relating to fraudulent trading and directors’ disqualification continue in full force and effect. Continue reading “COVID-19: Insolvency & The UK Gov’s Temporary Suspension of Wrongful Trading Liability”
Many hope to see an expansion in areas that stimulate growth in a more environmentally friendly manner
By Drew D. Salvest & Natalie A. Stewart
While the world is currently focused on the impact of COVID-19 on the global economy, with “COVID-19 Bond” issuance easily outdistancing the current volume of green financing, it is time to consider post-COVID-19 activities. One positive effect of the pandemic is the demonstrable improvement of carbon levels and other environmental measures. So, as national governments consider measures to reopen their economies, lenders and borrowers may want to consider how best to finance the economies’ reemergence. Many hope to see an expansion in areas that stimulate growth in a more environmentally friendly manner.
In this context, loan market groups including the Asia Pacific Loan Market Association (APLMA), Loan Market Association (LMA) and Loan Syndications and Trading Association (LSTA) have recently published guidance to market participants on how to apply the Green Loan Principles (GLP) and Sustainability Linked Loan Principles (SLLP) in practice. The aim of the guidance is to develop the market for green financing, following the publishing of the GLP in March 2018 and the SLLP in March 2019.
The key difference between green loans and sustainability linked loans is that green loans place greater significance on the use of proceeds for green projects, whereas sustainability linked loans look to the sustainable nature of the borrower measured against specific targets. Loans can follow both the GLP and SLLP, but are rarely seen in the current market.
Further guidance has been given on the following aspects: Continue reading “New Guidance Documents on Green Loan Principles and Sustainability Linked Loan Principles for a Post-COVID-19 World”
By Vijay Bange
Throughout the lockdown in the UK, the construction industry has been allowed to remain open for business providing that compliance with the Public Health England measures is maintained. However, most national house builders at least had taken a decision to close sites. Boris Johnson on Sunday 10th May, in his long awaited press briefing on the potential relaxation of social distancing road map, made clear that those in construction and manufacturing should go back to work, if they could.
The distancing restrictions will require those at sites to plan their works to ensure compliance with the still in force social distancing measures, and to also consider that other safety requirements also need to be put in place. Adherence to safety at work guidance remains paramount. Sites will be a different place to how they were before. The net effect will be that works may take longer, and potentially there will be risks of delays to delivery of projects. Contractors will need to do what they can to mitigate this risk. Continue reading “Open All Hours – Greater flexibility with site opening hours for UK construction”
By Vijay Bange
“Lean Isn’t for Lockdown, It’s for Life” was a thought provoking treatise by my fellow partner at Duane Morris, Alexander Geisler (London office co-head, author, journalist and creator of the Lean Law Suite of lean practice methods). He discussed how our “New Norm” in the COVID-19 era is forcing industries to adopt Lean Thinking principles to work efficiently and effectively. This paper seeks to consider the extent to which these concepts are applicable to the UK construction & engineering industry.
Lean Thinking as a concept has its roots in Toyota’s production system. One of the primary tenets of this concept is to aim to perfect process, as continuous improvements address root causes of quality issues, and the elimination of waste. Continue reading “UK Construction & Engineering: Lean Thinking Re-Visited”
By Nic Hart
This UKGov guidance outlines how holiday entitlement and pay operate during the coronavirus pandemic. It is designed to help employers understand their legal obligations, in terms of workers who:
- continue to work
- have been placed on furlough as part of the government’s Coronavirus Job Retention Scheme (CJRS)
This guidance should not be treated as legal advice. Employers and workers should always check individual contracts and if necessary seek independent legal advice.
Almost all workers, including zero-hour contracted workers and those on irregular hours contracts, are legally entitled to 5.6 weeks’ paid holiday per year. The exception is those who are genuinely self-employed. Continue reading “COVID-19: UKGov Holiday Pay and Entitlement Guidance”
By Nic Hart
Following on from the Prime Ministers statement on Sunday evening (May 10th), setting out the next phase -Stay Alert- there was a general reaction of uncertainty about how this will translate for employers and employees in practical terms.
In the time since the Prime Ministers statement we have now had a number of Guidance documents released regarding how workers will be kept safe, which is fundamental to implementing a return to work which will have industry and union support. I have given an overview of the new Guidelines and Guidance below, however I am aware that there will be sector specific queries as this Guidance is implemented which I am happy to discuss as required.
The first of the guidance was the Government paper- OUR PLAN TO REBUILD: The UK Government’s COVID-19 recovery strategy, published yesterday -May 11th, which dealt with the work place in general terms. This advised that from Wednesday May 13th and for the “foreseeable future”; Continue reading “Staying ‘COVID-19 Secure’: Analysing UKGov’s Back-To-Work Guidance”