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Employment Law Update 5th Nov 2020
Parfitt Cresswell • November 9, 2020
This article is brought to you by Parfitt Cresswell Solicitors
Extension of the Furlough Scheme (CJRS)
On Saturday 31st October the Prime Minister announced a further national lockdown in England to address the increasing rate of Covid-19 infections throughout the UK. This lockdown commenced on 5th November and will remain in place until at least 2nd December 2020.
Under the previous tiered ‘local’ lockdown arrangements, the Government had announced two Job Support Schemes which were intended to succeed the Coronavirus Job Retention Scheme (furlough scheme). These schemes were known as the ‘JSS Closed’, aimed at businesses that had been forced to close under the tiered restrictions and the ‘JSS Open’, a scheme for businesses who although affected by Covid-19, were still able to open. These schemes were due to replace the existing furlough scheme when it ended on 31 October 2020, with the Government support significantly reduced when compared with the original CJRS.
However, along with the announcement of a national lockdown throughout November, it was also announced that the CJRS would be extended for a further month. A few days after this, the Chancellor announced that this extension of the furlough scheme would now run until the end of March 2021. As such, the JSS is not likely to resurface until at least April 2021 (if at all).
How had furlough changed
By way of a reminder, the CJRS has been through several changes since its introduction in March 2020, from the Government initially funding 80% of an employee’s salary up to £2,500, with government support reducing in recent months as restrictions eased.
In October 2020, the month before the scheme was due to end, the government contributed 60% of unworked hours up to a cap of £2,187.50, with the employer paying the additional 20% along with employer national insurance and pension contributions.
How will the extension work?
In simple terms, the extension of the Furlough Scheme puts employers back to the same level of government contributions that were available in August 2020, with the Government funding 80% of eligible employees’ salary, but the employer having to contribute both employer national insurance/pension contributions themselves.
The current understanding is that the furlough extension will operate largely as it did before, however the following now applies:
• The extended scheme will run until 31 March 2021.
• The employer or employee are not required to have previously used the CJRS
• To be eligible, the employee must have been on the employer’s PAYE payroll by 23.59 on 30 October 2020 and the employer must have made a Real Time Information (RTI) submission for that employee by that date.
• The employee can be furloughed either full-time or flexibly (for part of their hours). Employers will need to report and claim for a minimum period of seven consecutive calendar days.
• The government will pay 80% of eligible wages for any unworked hours, (up to a cap of £2,500) with the employer paying employer NIC and pension contributions on these unworked hours. Employers will need to pay the employees for any hours worked as per usual.
• The employer can choose to top up to 100% if they wish but is not obliged to.
• The Job Retention bonus for employers (£1,000 for each employee kept on until the end of January 2021) will no longer be able to be claimed in February as planned, but will possibly be introduced at a later date to help avoid the impact of the furlough scheme ending.
• The Government will review the scheme in the New Year, so it is still possible that increased employer contributions could be required prior to the end of March.
As with all these announcements, further detail and guidance will follow from the government in due course.
If you require further legal assistance regarding the CJRS or and other employment law issue, take advantage of our complimentary initial consultation (available via telephone or video call) today by calling 0800 999 4437
or email enquiries@parfittcresswell.com
LinkedIn is a key channel for personal branding, so your LinkedIn profile is the launchpad to building a strong professional network. The channel is also the place to be if you wish to continue relationships of key people you meet at zoom networking events allowing you to easily stay in touch after making the effort to attend the meeting. As well as being the touchstone for nurture and lead generation a well optimised LinkedIn profile is on the same level as making a good first impression when you meet in person. How do you optimise your profile? 1. Make sure you have a current and professional head and shoulders photograph of yourself. You are on the platform to do business so ensure you appear to be there for that reason so a picture with your partner, favourite pet or vehicle doesn’t cut it. It should be a current photograph as it could be embarrassing putting a ten-year-old photo on the platform and when you meet a contact in person you look nothing like your photo so it could end up being a little like a bad first date. Be authentic. 2. Also use Canva.com to create a background image as why miss the opportunity to promote your business. If you have staff on LinkedIn create an image for all of them to use as their background as it’s a little like giving them all a company vehicle with no costs attached. 3. Treat your LinkedIn profile as an online resume and ensure you complete every section – a. The about section – I split this into two sections i. My Background ii. What I Do Now iii. Include an email and phone number at the bottom of this section b. Experience – show at least the last two positions c . Education d. Licences and Certifications e. Skills and Endorsements – You can have 50 of these so put in as many as you can for example if you were a bar person you could include customer service. f. Recommendations – request these from people you know 4. Use keywords in your headline – think of the words you would use if you were looking for your goods or services. 5. Join groups which could be a. Within your industry b. Where your target market is c. Services you have an interest in If you require any help or advise we offer training or talk you through the process via zoom. Blog written by Linda Cloke of We Do Social Media Ltd Contact: Linda@wedosocialmedia.co.uk or call 07769943756
According to the Health & Safety Executive, over 11 million workdays are lost each year due to stress at work! The latest Employment Law Bulletin from our sponsors Parfitt Cresswell Solicitors focuses on the topic of stress in the workplace and the actions that employers can take to defend themselves against claims arising from this. In the Employment Law Bulletin expert Philip Luff covers: • What stress is • The duties of an employer • The potential action that an employee can bring against their employer for work related stress, and offers tips on how employers can best protect themselves against workplace stress claims To read the article and find out more about Stress Related Claims in the workplace click here . If you would like legal advice regarding an Employment Law matter take advantage of Parfitt Cresswell Solicitors’ complimentary initial video/telephone consultation with one of their legal experts. Call 0800 999 4437 or email enquiries@parfittcresswell.com today to arrange your free initial consultation.
This article is brought to you by our sponsors Parfitt Cresswell Last month’s commercial property bulletin focused on retail and the potential shape of the High Street of the future, discussing the way in which the Covid-19 pandemic has necessitated a more flexible approach to real estate usage by landlords, tenants and local authorities. Since our last update, Haywards Heath, a town with a population of approximately 35,000, where Parfitts has two offices operating under its Colemans Solicitors brand, has seen a planning application approved for the demolition of a long-established office block to be replaced by a mixed commercial and residential development. It therefore seems like an appropriate time to take a look at another aspect of commercial property: office space. Last Thursday, 29 October 2020, marked the closure of the Government’s consultation on proposals for reform of the planning system in England, set out in its White Paper: “Planning for the Future”. The focus of “Planning for the Future” is principally residential development: the word “commercial” appears twice in the White Paper whereas there are over 100 instances of “community” or “communities”. Nevertheless, when it does comment on commercial property, the Government continues to emphasise the need for greater flexibility, despite advocating a move away from the current, relatively discretionary, planning regime towards a more rules-based approach. In relation to commercial real estate, “Planning for the Future” emphasises the need for a new planning system to: “help businesses to expand with readier access to the commercial space they need in the places they want and supporting a more physically flexible labour market”. The reference to a more flexible labour market is interesting in the context of the marked shift towards home working that the Covid-19 pandemic has caused. Things may not be changing as fast as some commentators suggest and there will continue to be a need for more traditional office accommodation, particularly while smaller professional businesses are either unwilling or unable to support employees in adopting more agile working practices. However, earlier this month the multi-national professional services company, Deloitte, announced that it was closing offices across four locations, including Gatwick and Southampton, with 500 employees being offered full-time remote working. Earlier in the pandemic, it was reported that up to three quarters of Britain's biggest employers are looking at a permanent shift to flexible working. Banks and the financial services sector look to have been quick to embrace this shift. Against this background, the recent planning decision in Haywards Heath that sees a dedicated office building (that had, in the past, been occupied by Lloyds Bank) being demolished and replaced by a mixture of housing and office space seems a sign of things to come. As well as highlighting the need for flexibility when it comes to commercial space to accommodate a more agile workforce, “Planning for the Future” specifically references the UK’s knowledge-based economy, stating that in the future Local Plans will need to identify: “… land needed to take advantage of local opportunities for economic growth, such as commercial space for spin-out companies near to university research and development facilities, or other high productivity businesses.” Research and Development is an area of particular importance to the South East: the region boasts 21 universities and 36 business incubators and accelerators. The UK Government is looking to the country’s digital and technological businesses to help drive post-Brexit economic growth so it will be intriguing to see whether the spaces created by white-collar workers logging on from home will be filled by more creative scientific or tech start-ups, where collaborative working is better facilitated by working together and being in close proximity to universities or other R&D facilities. Given that the “spin-out companies” cited in “Planning for the Future” will likely be start-ups with little or no trading history, will commercial landlords be willing to take their chances in letting space? What steps would a prudent landlord take to protect his or her position in these circumstances? How will commercial tenants make best use of available office space? How will both parties seek to maximise the benefits of the increased flexibility available to them? Businesspeople and their professional advisers will have to wrestle with these questions throughout 2021 and the years to come but, as we concluded in our last bulletin: creativity, agility and flexibility will surely be key to navigating the ‘new normal’. If you or a loved one is in need of legal advice, take advantage of our complimentary, no obligations consultation where you can meet with one of our Commercial Property Law experts and find out what the next best course of action is. Be proactive and call us today on 0800 999 4437 or email enquiries@parfittcresswell.com and one of our friendly team will be happy to assist you.
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