Tag Archives: UKGov

COVID-19: UKGov Holiday Pay and Entitlement Guidance

By Nic Hart

13.05.2020

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.

Holiday entitlement

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

Staying ‘COVID-19 Secure’: Analysing UKGov’s Back-To-Work 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

They think it’s all over – it is now! COVID-19: Furlough and Holiday Update April 20th 2020

By Nic Hart 

20.04.2020

Good evening. I am hopeful that this is the last “ COVID-19 UK Furlough” update you will receive…from me at least!

HMRC has now provided us with some much needed clarity on taking annual leave while on furlough. This has been an update to the Employees Guidance, not the Employers Guidance (as at the time of this email).

Put simply it states;

Continue reading They think it’s all over – it is now! COVID-19: Furlough and Holiday Update April 20th 2020

COVID-19: Job Retention Scheme UK Gov Guidance April 15th 2020

By Nic Hart & Liam Hutton

15.04.2020

Another week and another set of Guidance on the Coronavirus Job Retention Scheme has just been released today, April 15th 2020.

In addition, there has also just been a Treasury Direction released this afternoon (April 15th 2020).

UK Gov Updated Guidance

I will first deal with the 4th Guidance issued by the Government. Details on this as follows.

Continue reading COVID-19: Job Retention Scheme UK Gov Guidance April 15th 2020

New COVID-19 UK Government Financing Options Available

By Drew D. Salvest & Natalie A. Stewart

31.03.2020

The UK government recently announced a package of measures to provide liquidity to UK businesses during the COVID-19 pandemic. Two schemes are particularly useful for financing needs: the HM Treasury and the Bank of England COVID-19 Corporate Financing Facility and the British Business Bank Coronavirus Business Interruption Loan Scheme. Our Alert provides summaries of the financing schemes, eligibility requirements and the application process.

HM Treasury and the Bank of England COVID-19 Corporate Financing Facility

Who Is Eligible?

Continue reading New COVID-19 UK Government Financing Options Available

COVID-19 Job Retention Scheme – Update March 26th 2020

By Nic Hart & Liam Hutton

26.03.2020

The UK Government’s COVID-19 Job Retention Scheme is available to any large or small employer. Furlough leave is short term temporary leave. The scheme will cover the cost of wages backdated to March 1 and cover all UK-wide employers with a PAYE scheme.

The government will pay cash grants (grants will be received from HMRC) of 80 per cent of an employee’s wages up to a cap of £2,500, providing the worker is kept employed.

At present the scheme will be open initially for at least 3 months but the government has indicated it will extend it for longer if necessary. There is no limit on the amount of funding available for the scheme.

Government expectation is that the first grants will be paid within weeks and HMRC are aiming to get this done before the end of April. There are no existing systems set up to facilitate payments to employers at this time.

Continue reading COVID-19 Job Retention Scheme – Update March 26th 2020

Furlough Leave – The UK Government’s COVID-19 Job Retention Scheme

By Nic Hart

23.03.2020

Last week the UK Government announced that it would be providing support for businesses through the ‘Coronavirus Job Retention Scheme’. Under this scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. ‘Laid off’ in this context will mean in general rather than in the technical sense.

As at the time of writing (23 March 2020 – 9:30am), the Guidance remains limited on the scheme, particularly in relation to its administration. However, we have tried to best summarise the current position below.

 The Scheme

HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. Existing systems are not set up to facilitate payments to employers.

It is not clear at this stage whether this is a cap on £2,500 gross salary or cap on net payment, but indications are from reading current guidance on this is that this will be the net salary cap.

Employees guidance is that they should not undertake work, will remain employed and on the payroll and that the employer can make up the 20% shortfall but this will be at the employers discretion.

The scheme will be backdated to 1 March 2020 and will run for an initial three months from that date. The Government have stated that the scheme will be extended if necessary.

 Eligibility

All UK businesses are eligible. The guidance currently does not state any limitation to this, so it will apply to limited companies, LLPs, Partnerships, charities, sole traders etc.

Continue reading Furlough Leave – The UK Government’s COVID-19 Job Retention Scheme

COVID-19: UK Government Postpones IR 35 Reforms until 6 April 2021

By Nic Hart & Liam Hutton

19.03.2020

As part of the UK Government’s emergency measures to tackle the effects of the coronavirus crisis on the UK economy, it announced on 17 March 2020 that the implementation of new regulations subjecting ‘medium and large’ companies to the off-payroll working rules have been postponed until 6 April 2021.

The Reforms

In July 2019 the Government published draft legislation to the effect that from April 2020, the IR 35 rules would no longer apply where ‘medium and large’ companies in the private sector contract with personal service companies for the provision of workers’ services.

However, this implementation date has now been moved to 6 April 2021 as part of the UK Government’s financial measures in light of the coronavirus crisis.

When eventually implemented, the effect of these changes will be that the IR 35 rules, which place the obligation to assess employment status and operate payroll if appropriate with the personal service companies rather than end user companies, will no longer apply to those entities regarded as ‘medium and large companies.’ Consequently, these end user companies will be subject to an obligation to account for tax and national insurance for workers engaged via a personal service company through PAYE under the off-payroll working rules from 6 April 2021.

Continue reading COVID-19: UK Government Postpones IR 35 Reforms until 6 April 2021