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Parfitt Cresswell Weekly Employment Law Bulletin 1
Parfitt Cresswell • May 11, 2020
Whilst the Coronavirus Job Retention Scheme (Furlough Scheme) has provided a much-needed lifeline for many businesses, this scheme is due to end on 30 June 2020. Take up of the scheme has been very high (with approximately 6 million workers having been furloughed at the time of writing) and this has come at considerable expense to the economy. As the government look at various ways to transition out of this scheme as the lockdown ends, a phased approach with different sectors returning to work at different times appears to be the preferred option.
The key topics that we will be covering in the coming weeks will include the following:
- Annual leave considerations
- Health and Safety requirements upon returning to work
- Changes in working arrangements
- Changes to the workforce upon exiting furlough.
If there are other topics you would like us to cover that may be affecting you, then please do let us know by contacting clientservicesteam@parfittcresswell.com.
This week we will start by looking at issues that may arise around annual leave entitlement, both during any furlough period and beyond.
Annual Leave
Whilst much activity in the country has come to a standstill during lockdown, it is likely that those employees who are working from home or on furlough leave are still accruing holiday. In addition, many employees will have taken less holiday than normal for this time of year due to restrictions on travel, both domestically and overseas. Understandably, workers may be more reticent to take their ‘holidays’ during a period when they are confined to their house for 7 days per week.
This leaves employers with concerns over employees returning to work with higher than usual amounts of accrued annual leave and facing a potential deluge of requests for leave in the later part of this year. At the very time when employers are attempting to get things back on track, they may find themselves with a significantly reduced workforce.
Statutory Entitlements
Workers are entitled to a minimum of 5.6 weeks paid annual leave per year. This is made up of 4 weeks that comes from EU law (the Working Time Directive (WTD Leave)) and 1.6 weeks that comes from the UK’s Working Time Regulations 1998.
For full time employees, this amounts to 28 days annual leave per annum, although this may include bank holidays. Of course, many employers do also give their employees enhanced contractual terms that provide additional days over and above the statutory minimum.
Anticipating that workers may be unable to take all their annual leave in 2020, the government has recently passed emergency legislation that allows the 4 weeks of WTD leave to be carried over where it was ‘not reasonably practicable to take it in the leave year’ as a result of the effects of coronavirus. This includes effects on the worker, the employer or the wider economy.
This carried over leave must be taken in the two years immediately following the leave year in which it was due.
Should employees be encouraged to take annual leave whilst on lockdown?
Employees should be encouraged to take their annual leave proportionately throughout the year, including during any period of lockdown. Annual leave is intended to give a period of rest and relaxation away from work. Even for employees that are working from home, taking their annual leave is still important to their wellbeing.
Can an employer dictate when employees should take leave?
Whilst attempting to encourage employees to book holiday is always the preferred option, the Working Time Directive does permit employers to require their employees to take holiday at certain times of the year, as long as they are given enough notice (twice the length of the holiday proposed). However, before doing so employers should check their contract of employment/policies to ensure that they are permitted to do this.
Can employees take holiday during furlough leave?
Unless it has been agreed otherwise, an employee is entitled to take holiday during any period of furlough leave. This time will be payable at 100% of their normal salary, meaning that employers who have furloughed employees at 80% will have to pay the remaining 20%.
Although an employer could reclaim up to 80% of the annual leave costs, making it an attractive option for those who are able to top up the 20%, for others their financial circumstances during this period may make this option less attractive, as the employer will be required to fund the difference.
Although an employee can choose to take annual leave during furlough, it is possible for an employer to designate furlough as a period where no holiday can be taken (via suitable wording in the furlough agreement), or alternatively they could serve a counter-notice in response to any holiday request that is made by the employee, provided this is done within time.
What about bank holidays?
If employees usually take these days as annual leave, they should be treated as statutory annual leave and therefore be paid in full. In this situation the employer will need to either top up the pay or provide the employee with a day off in lieu (which can be carried forward to the following year).
Can an employer force an employee to take their annual leave during a period of furlough leave?
This is a little more difficult as employers should be mindful of not breaching the implied term of mutual trust and confidence between them and their employees. Caution should be exercised when requiring an employee to take annual leave during furlough or refusing an employee’s request to cancel a previously booked holiday, as this could amount to a breach of trust and confidence by the employer. Much will revolve on the restrictions in place at the time and whether the employee is able to enjoy rest and relaxation during this period.
In most cases it is hoped that employers and employees can reach sensible solutions to resolve any annual leave issues that arise. However, should you have any difficulties or any particular circumstances that you require assistance with, please do not hesitate to contact us on 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 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
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