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Parfitt Cresswell Weekly Employment Law Bulletin 3
Parfitt Cresswell • June 1, 2020
This article is brought to you by our sponsors Parfitt Cresswell.
Changes to Furlough (Coronavirus Job Retention Scheme) announced on 29 May 2020
On 12 May 2020 the Chancellor announced an extension to the CJRS until October 2020, with a requirement that employers would start to contribute to the cost of this from 1 August onwards. It was also anticipated that at some point employers would also begin to be able to bring employees back to work on a part-time basis whilst still on furlough.
Important Deadline - Closure of the scheme for new entrants on 10 June 2020
The announcement from the government on Friday confirmed that the CJRS scheme will no longer be available to new entrants from 30 June 2020.
Considering that employees are required to be furloughed for a minimum of 3 weeks, in practical terms this means that any employers still considering furloughing employees for the first time will need to do so by 10 June, as after this date it will not be possible.
Changes to employer contributions
During June and July 2020, the scheme will continue to operate as it has previously, with the government continuing to reimburse employers up to 80% of pay (up to £2,500), plus employer National Insurance and auto-enrolment pension contributions.
From 1 August, the government will still reimburse 80% of pay (up to £2,500), but the employer will then become responsible for payment of both employer National Insurance and pension auto-enrolment contributions.
From 1 September, the government’s contribution will be reduced to 70% of pay (up to a cap of £2,187.50), with employer then required to pay 10% of the employees’ wages to make up the 80% (up to £2,500) as well as employer National Insurance and pension auto-enrolment contributions.
In October 2020, prior to the scheme closing on 31 October 2020, the government contribution will be reduced to 60% of wages (up to a cap of £1,875), with employers required to pay 20% of wages to make up the 80% (up to £2,500) as well as employer National Insurance and pension auto-enrolment contributions.
‘Flexible’ furlough
From 1 July 2020 (earlier than anticipated), employers will have the flexibility to bring employees back to work and for them to perform some work part time.
This will be on an ‘as needed’ basis, with employers able to choose when and how many hours they wish the employee to work, whilst furloughing them for their remaining contractual hours. These hours can be varied on a week by week basis.
For the hours that employees are required to work, this will be at full pay with the remaining hours not worked on furlough pay as detailed above.
Further details on how this ‘flexible furlough’ will work are being published on 12 June 2020, which we note is following the deadline for new entrants to the scheme. It is expected that employers and employees will be required to put any new arrangements in writing when utilising this flexible furlough option.
No doubt this will place an additional administrative burden on employers (as well as financial), to formally record and monitor the hours that are being worked under flexible furlough.
The government hopes that the above changes will help employers manage the transition back to work with a gradual increase in employer contributions being introduced over time, rather than the ‘cliff edge’ scenario of suddenly ending the furlough scheme.
However, being asked to contribute even a modest contribution over the coming months will be unaffordable for many employers in the current climate and they will need to assess their options carefully, with possible changes in the workforce required.
If you need assistance with any of the issues arising from the above, please do not hesitate to get in touch using the contact details at the end of this bulletin.
Changes in working arrangements
In our last bulletin we looked at the various health and safety requirements for employers to consider when looking to return to the workplace.
Whilst many employees have been required by the government to work from home during lockdown (where possible), many employers may now be considering increased homeworking for their employees on a more permanent basis, despite a return to pre-coronavirus conditions.
Homeworking has some clear benefits to employers such as reduced overheads, increased productivity (due to reduced travel time) and increased workforce motivation. However, such arrangements also present several challenges that will need to be considered carefully by employers before they agree.
Contractual arrangements
Is the employee’s current contract sufficiently well drafted to cater for a more permanent home working scenario?
Employers will need to ensure that their contracts are appropriately tailored to cater for homeworking including:
Inclusion of appropriate provisions to ensure protection of confidential information and personal data whilst working from home
Hours and place of work being adequately drafted to permit homeworking, yet giving the employer enough flexibility to suit the needs of the business
Salary and benefits offered being no less favourable than those of comparable employees
Provision to enable adequate monitoring of IT equipment and communication systems
A right to enter premises
A trial period
In addition to this, a well drafted homeworking policy to set out the requirements and expectations whilst working from home is also recommended.
Health and Safety duties
Homeworkers will be covered by the Health and Safety Act and as such employers will need to ensure that they:
Provide safe systems of work and working equipment
Carry out risk assessments and review these regularly
Provide sufficient information, supervision, training and instruction
Provide a safe working environment
Make arrangements for a worker’s welfare at work
In ensuring that appropriate risk assessments are carried out for homeworkers, employers may look to consider the following:
Reminding workers to take breaks and to work ordinary hours as far as is possible
Consideration of employees’ welfare and mitigating the risks of isolation, stress and anxiety
Assessment of any ‘workstation’ including suitable seating arrangements
Fire safety and first aid considerations, ensuring that adequate provision of facilities exist should an accident occur whilst at home
Expenses and Insurance
Employers may wish to consider the additional household expenses that employees may incur when working from home and whether any re-imbursements can be made to employees, potentially with tax advantages.
Employees may also need to check their leases or mortgage arrangements to ensure that they are not prohibited from working from home and to obtain permission if this is required.
Employees should also have in place adequate home insurance that will cover damage and third-party claims caused by work equipment, with the employer looking to cover any additional premiums that are required to provide this. The cover for the equipment itself should be covered by the employer’s insurance.
Disabled employees
Employers have a duty under the Equality Act 2010 to provide reasonable adjustments to enable a disabled person to work. What is a reasonable adjustment will vary for each individual/workplace and such adjustments could include the provision of homeworking itself as well as the various forms of assistance that an employer provides to make homeworking possible. Assistance may take the form of equipment, software or other forms of support that an employer would be expected to provide to their disabled employees.
There may also be employees with undeclared disabilities who may also struggle with working from home, particularly those with mental health conditions. It is therefore vital that when working remotely, employers communicate with all employees in such a way to ensure that all employees concerns/issues are identified at an early stage, and that adequate support mechanisms are put in place where appropriate. Taking these steps will help employers reduce the risks of discrimination claims arising.
Employers who wish to introduce changes
As we emerge from lockdown, it is likely that some employers will be looking at permanent homeworking arrangements to reduce overheads. To make such a change to an employee’s contract of employment (where there is no contractual provision permitting such a change), an employer could:
Obtain agreement to the new terms
Unilaterally impose the change
Terminate the existing contract and re-offer employment on the new terms
Unilaterally imposing changes and terminating contracts are measures that should be taken with the benefit of legal advice to minimise the risks of any claims that the employee could potentially make.
Flexible working requests
As a result of the increase in homeworking during the lockdown period, it is likely that employers will also see an increase in flexible working requests being made by employees.
Whilst there is no automatic right to work from home, employers with 26 weeks’ continuous service have the statutory right to apply for flexible working. The application must:
- Be in writing, dated and state that the application is being made under the statutory right to request flexible working;
- Specify the proposed flexible working arrangement and date on which the employee would like it to start;
- Explain what effect, if any, the employee thinks the proposed change would have on the employer and how, in their opinion, it can be dealt with; and
- Confirm whether a previous application has been made to that employer and if so, when.
- Burden of additional costs
- Inability to re-organise work among existing staff
- Inability to recruit additional staff
- Detrimental impact on quality
- Detrimental impact on performance
- Detrimental effect on ability to meet customer demand
- Insufficiency of work during the periods the employee proposes to work; or
- Planned structural changes
Considering this requirement for employers to reject on specified business grounds only, we anticipate that employers may find it more difficult in the future to justify such a refusal. If homeworking has been successfully operating for several months during lockdown, with the necessary infrastructure put in place to enable this to happen, it is likely to become more difficult to justify one of these specified grounds when rejecting the request.
The above applies to formal ‘statutory’ requests, but employers will also need to carefully consider the implications of rejecting any informal request for flexible working. Failure to deal with such requests reasonably, especially for those with disabilities, susceptibility to Covid19 or childcare commitments, may expose the employer to risks of discrimination and constructive dismissal claims.
To find out more or take advantage of our complimentary initial consultation via telephone or video call contact us today 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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