Employment Law News

Employment Rights & Equality (Race & Disability) Bills

July 2024

2023/2024 has already seen several changes to employment legislation and now with the change in government comes further changes to employment legislation. On 17 July 2024 the King attended the state opening of parliament and read a speech that sets out the new government’s plans for legislative change.

A briefing note to the King’s speech reveals that the government will introduce two employment related Bills. The Bills will be introduced during the first 100 days of the new parliament (on or before 13 October 2024), in what the Government is calling "the biggest upgrade to workers' rights in a generation".

Employment Related Bill

Providing a genuine living wage and removing the current age bands that apply to the National Minimum Wage and National Living Wage.
Ban zero-hour contracts: Legislation will ensure workers have a right to a contract reflecting the number of hours they regularly work, with reasonable notice of any change in shift patterns. This will put an end to "one-sided flexibility", the Government said.
End Fire and Rehire or Fire and Replace: the Government will reform the law to provide effective remedies and replace the previous statutory code, which it describes as "inadequate".
Provide day-one rights on parental leave, sick pay and protection from unfair dismissal for all workers, although employers will be able to operate probationary periods while they assess new hires.
Remove the lower earnings limit on Statutory Sick Pay so it is available to all workers, and get rid of the three-day waiting period. Currently, 1.5m people earn below the lower earnings limit (£123 per week).
Make flexible working the default from day one for all workers, with "employers required to accommodate this as far as is reasonable".
Make it unlawful to dismiss a woman who has had a baby for six months after her return to work, "except in specific circumstances".
Establish a new Single Enforcement Body, the Fair Work Agency, to monitor the enforcement of workplace rights.
Set up a Fair Pay Agreement in the adult social care sector. If this works, it will assess whether such agreements could work in other sectors.
Reinstate the School Support Staff Negotiating Body to establish national terms and conditions, career progression and pay rates for teachers and other school staff.
Remove "unnecessary restrictions" on trade union activity, including the Strikes (Minimum Service Levels) Act, to ensure industrial relations are based around "good faith negotiation and bargaining".
Simplify the process of statutory recognition to ensure workers have a reasonable right to access a union in their place of work.

Equality (Race & Disability) Bill

This bill aims to tackle inequality for ethnic minority and disabled people by:

Enshrining in law the full right to equal pay for ethnic minorities and disabled people which will make it easier for them to bring equal pay claims, and
introducing mandatory ethnicity and disability pay reporting for large employers (those with 250+ employees) to help close ethnicity and disability pay gaps.

Previous Legislative Changes for 2024

What will happen to legislative changes that were already in the pipeline?

Below is set out what legislation has been saved as a result of the change in government:

The Worker Protection (Amendment of Equality Act 2010) Act 2023, provides for a positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment. The Act received Royal Assent on 26 October 2023 (under the previous Conservative Government) and is due to come into force one year after that date, on 26 October 2024.

Following amendments to the original Bill, the Act does not introduce employer liability for third-party harassment of employees.

The Labour Government has said, in its pre-election Plan to make work pay, that it intends to require employers to "maintain workplaces...free from harassment, including by third parties" and that it will strengthen the duty to prevent sexual harassment. The detail of these additional measures, and when they will be brought into effect, is not yet known.

Allocation of tips

The government intended to implement the Code of practice, which had been approved, and the remaining provisions of the Allocation of Tips Act 2023 on 1 October 2024. That date is now not guaranteed, and it will be up to the new government to determine this.

Changing employment terms ‘fire and rehire’

The Code was saved during the wash up period and came into force on 18 July 2024 however the new government have indicated that changes will be made to the code.

Paternity Leave (Bereavement) Act 2024

The Paternity Leave (Bereavement) Bill received Royal Assent during the wash up and is now the Paternity Leave (Bereavement) Act 2024.

It will require a commencement order to be brought into force as well as regulations setting out the detail. Once fully implemented, it will provide:

• Leave (possibly up to 52 weeks) for partners and fathers where the mother has died in the first year after birth or adoption. A bereaved parent of an adopted child or intended parent of a child born through a surrogacy arrangement, will also fall within the scope of the new provisions.

• The usual 26-week qualifying period for paternity leave won't apply in these circumstances and the stipulation that a parent who has taken shared parental leave can't subsequently take paternity leave will also be removed.

This Act had cross-party support and was rushed through before parliament shut down for the elections therefore we would expect all of these measures to be implemented.

Where does that leave legislation that needed commencement orders or regulations before it came fully into force?

There are a couple of pieces of legislation that were passed (and are already Acts of Parliament) but don't yet have dates when they will come into force. These are:

1. The Workers (Predictable Terms and Conditions) Act 2023 which will allow some workers to ask their employer for a more predictable working pattern including the right to work for a certain number of hours, or on particular days of the week. The right will apply to workers engaged under fixed term contracts of less than 12 months. Employers will be able to turn down requests if they have a business reason for doing so on broadly the same grounds that apply to the right to turn down flexible working requests.

2. The Neonatal Care (Leave and Pay) Act will give employed parents whose newborn baby is admitted to neonatal care the right to take up to 12 weeks of paid leave, in addition to any other leave they are entitled to.

It will be up to the new government to decide how quickly these measures will come into force and to introduce regulations which set out the details of how these will work.

Employment Law Round Up

30 November 2023

Equality Act Amendments

Love it or hate it Brexit will happen on 31 December 2023. As a direct result and with effect from the 1 January 2024 The Equality Act 2010 (Amendment) Regulations 2023 will come into force enshrining EU Law in UK domestic legislation. Under the Retained EU Law Act these protections would otherwise have fallen away when rights, powers and liabilities derived from EU case law cease to have effect at the end of 2023. 

The amendments include the following:

• discrimination in access to employment 

• discrimination related to pregnancy, maternity and breastfeeding 

• indirect discrimination by association 

• the definition of disability, and

• equal pay. 

National Minimum Wage/National Living Wage Increase

The government has announced increases to the NMW and NLW. Whereas previously the two were separate they are are combined as one figure for over 21 year olds.

The annual increases to the NMW/NLW with effect from 1 April 2024 are as follows:

• 21 and over - £11.44 (increase of £1.02)

• 18-20 - £8.60 (increase of £1.11)

• 16-17 and apprentices - £6.40 (increase of £1.12)

The accommodation offset will £9.99 per day (increase of 89p).

Changes to EU Settlement Status

With effect from September 2023, individuals with pre-settled status under the EU Settlement Scheme (EUSS) will automatically have their status extended by two years before it expires, if they have not already acquired settled status. The EUSS is the mechanism introduced by the government to enable EU residents lawfully to remain working and living in the UK after Brexit. Individuals who qualified obtained either full settled status, or pre-settled status, which would enable them to upgrade to the full permission once they reached five years’ residency in the UK.

This process will be automated by the Home Office and the extension will be included in the individual’s digital status in their UK Visas and Immigration (UKVI) account. Individuals will be directly notified of this extension by email. Once the extension has been granted, the individual’s pre-settled status rights will continue.

During 2024, the Home Office also intends to automatically upgrade pre-settled status holders to full settled status. This means these individuals will no longer need to make a second application, provided that automated government checks can establish their ongoing continuous residence in the UK.

Right To Work – Increase in Fines

As of January 2024, the maximum civil penalty for employing an illegal worker will be increased from £20,000 to £60,000. In respect of a first breach, the penalty for employers will increase from £15,000 to £45,000 for each illegal worker. The Home Office has advised that it also intends to consult on strengthening sponsor compliance action where illegal working is found.

The statutory excuse

Provided that an employer has correctly conducted the right to work check and crucially, can evidence this, they will benefit from the ‘statutory excuse’. This means that if they are found to be employing an illegal worker, they are excused from a civil penalty and so do not receive a fine.

_______________________________________________________________

Protection From Harassment at Work

30 October 2023

The Worker Protection Bill has now received royal assent and therefore will become law in 2024.

Employers will now be under a duty to prevent sexual harassment from happening in the workplace. This means will need to take preventative measures like having clear policies, training, and thorough impartial investigations into reported harassment to meet with their new obligations. The Equalities and Human Rights Commission will be able to take enforcement action against firms that breach this duty, and employers will also be liable to individuals as part of wider sexual harassment claims at an employment tribunal.

If you’re not sure whether your policies are robust enough please call us so that we can advise you to make sure you are compliant.

_______________________________________________________________

Employment Law Update In a Nutshell

3 October 2023

Post Termination Restrictions

The government has announced that following the consultation it launched into non-compete clauses back in 2020 that they’ll bringing in legislation to limit non-compete post termination restrictions to a maximum length of 3 months. The changes won’t affect restrictions imposed during notice periods garden leave arrangements or non-solicitation clauses. The government hopes that the changes will provide more flexibility for employees to join competitors or start up rival businesses and that the wider economy will benefit from the widened talent pool. As has always been the case if employers wish to rely on a non-compete clause, they are required to demonstrate that it is both proportionate and necessary to impose the restriction on the employee in question. The limit will apply to employment contracts and worker contracts only. It remains to be seen how the legislation will impact current non-compete clauses that are longer than 3 months.

Code of Practice on ‘Fire and Rehire’

This new draft code of practice is being brought in to provide practical guidance for employers to follow where there is a legitimate business need to change an employee’s terms and conditions of employment. It will apply where an employer needs to make changes to the employment contract, but the employee is not in agreement with the proposed changes. The employee would be dismissed and re-engaged on new terms and conditions of employment. The code does stipulate that fire and rehire should only be used as a last resort and that meaningful consultation should take place beforehand. Tribunals will be able to make a 25% uplift in damages if the code is not followed by employers.

Holiday Pay

Back in May 2023 the government announced proposals to simplify holiday entitlement and pay under UK law. These proposed changes form part of the Retained EU Law (Revocation and Reform) Bill. The current legislation around holiday/pay has become cumbersome and complex. One of the measures it is looking to reintroduce into legislation is ‘rolled up’ holiday pay. Rolled up holiday pay is where the employer pays additional amount to the on top of the workers hourly rate. Currently it is unlawful to pay holiday in this way as it is seen as a deterrent to workers to take time off. The proposal will apply to all workers including those with regular hours. Also proposed is the merging of statutory holiday and additional holiday entitlement: statutory holiday (4 weeks/20 days) under section 13(1) of the Working Time Regulations (WTR)and additional holiday (1.6 weeks/8 days) under section 13A of the WTR. Currently under section 13(1) (4 weeks) holiday pay must include payments for guaranteed commission, bonuses and regular overtime and it cannot be carried over unless prevented by long term sick, maternity, paternity or other parental leave. Under section 13A (1.6 weeks) this only needs to be paid at the basic rate of pay and can only be carried over by agreement unless prevented by maternity, paternity or other parental leave. The merging of 13(1) and 13A will simplify the calculation of holiday pay and the rules on carry over.

Increased Flexible Working Rights (FWRs)

Increased FWRs have been in the pipeline for some time now. It was anticpated that it would commence in 2023 but the government has still not confirmed a date when this new law will come into effect but it is now likely to be mid 2024. The changes as they currently stand are: removal of the 26 week qualifying period; the ability to make two requests in any 12 month period; Employer’s response time reduced from 3 months to 2 months but can be extended by agreement; obligations to consult with employees to consider alternative options; no need to explain the effect of the change or how it could be dealt with. There will be a code of practice drafted by ACAS where the emphasis will be on best practice not simply the legal requirements.

The Carer’s Bill

The Carers Leave bill received royal assent on 24 May 2023 and is now scheduled to come into force in May 2024. This will entitle individuals to take one week’s unpaid leave annually to provide or arrange care for a dependant with a long term health need. The right will apply from the first day of employment.

The Workers (Predictable Terms & Conditions) Bill

This new law will provide workers the right to formally request a more predictable working pattern twice a year. The bill is still the House of Lords at the second reading stage.

Transfer of Undertaking (Protection of Employment) TUPE

Very little will change with the Tupe regulations. It is proposed that employers will not need to elect employee representatives when consulting with the workforce if the business has less than 50 employees (previously was 10 employees) or the number of employees being transferred is less than 10 regardless of the size of the business.

Neonatal Leave

This new law is set to come into force in April 2025. As stated in the previous legal update it will entitle parents of prematurely born babies to 12 weeks neonatal leave and pay. The law will apply to parents whose babies spend 7 days or more in hospital continuously within 28 days of birth. This would be in addition to the current entitlement to maternity/paternity leave.

Extended Redundancy Protection

It is still not clear when this new law will come into force; the government have still not indicated when it will be therefore it is unlikely to become law in 2024. It provides increased protection for employees on maternity, adoption or shared parental leave and pregnant women the right to be prioritised and offered any suitable alternative vacancy where there are redundancies being made. The protection begin from the date that the pregnancy is announced and last for 18 months and 6 months after the return to work from leave.

The Employment (Allocation of Tips) Act 2023

This new law received royal assent on 2 May 2023 and means that employers must ensure that 100% of tips received by them (or by the worker when the employer has control over the tips) must be given to the workers without deduction (except for those required by law). The tips must be paid to the worker no later than the end of the month following the month in which the tip was paid. Additionally, employers must have a written policy explaining how tips are allocated and records must be maintained on how tips are allocated for at least 3 years and workers have the right to request this information. Before it can come into to force the government must draft a code of practice so it is expected to come into force some time in 2024.

_____________________________________________________________________

WHATS NEW FOR 2020

From 6 April 2020

Terms and conditions of Employment

All employees and workers will have the right to a written statement of terms and conditions from the first day of employment.

As it stands employers have 8 weeks in which to issue terms and conditions of employment.

Swedish Derogation (Agency Worker Regulations 2010)

This will be removed altogether. Currently an exemption to the right to equal pay applies if the worker is employed under a permanent contract of employment with the agency and is being paid between assignments. On or before 30 April agencies must provide a written statement to those affected that it will no longer apply.

IR35 Reforms

The reform will place the responsibility for assessing whether IR35 applies onto the private sector end user (clients) of the worker’s (contractors) services, for all payments by medium and large businesses.

Originally individuals who worked like employees but who operated via an intermediary, such as a personal service company (PSC), paid broadly the same tax and National Insurance Contributions (NIC) as an employee would.

Due to the Covid19 pandemic the government has deferred the IR35 reforms to April 2021.

Reference Period for Holiday Calculations

Currently the reference period is 12 weeks.

This will now increase to 52 weeks. Any weeks where there are no earnings are to be disregarded for these purposes.

Parental Bereavement Leave (New)

Bereaved parents will be entitled to 2 weeks paid leave under the new Parental Bereavement (Leave and Pay) Act 2018 expected to come into force in April 2020. It applies to the loss of a child under the age of 18 years or still birth after 24 weeks of pregnancy. To be entitled to pay employees must have a minimum of 26 weeks service for the pay element to apply. Those employees with under 26 weeks service with their

employer will take the leave unpaid.

Covid 19

The coronavirus pandemic has sadly seen unprecedented numbers of deaths globally. The UK has been on lockdown since 24 March 2020.

Due to measures imposed by the governments worldwide, in an effort to limit the spread of the virus among work forces, employers have been forced to close their doors; this has in turn thrown the business world into chaos!

Despite these and other measures the virus is still spreading at a mammoth rate!

With millions out of work the government have implemented the job retention scheme that was launched on 3 April 2020 so that employers can claim back 80% of lost wages for their staff that have been furloughed. The scheme does not apply to employees taken on after the 1 March 2020.

The government’s full guidance on how the scheme works can be found here

Below are some of the key points:

the scheme is open to all UK employers that had a PAYE scheme in place on 28 February 2020
employers can reclaim up to 80% of wage costs up to a cap of £2,500 per month, plus (not including) the associated employer NICs and minimum auto-enrolment pension contributions on that wage. Fees, commissions and bonuses are not included.
Employers have the discretion whether to top the 80% up to 100%
for employees whose pay varies, the employer can claim for the higher of (i) the same month's earning from the previous year (eg earnings from March 2019); or (ii) average monthly earnings in the 2019-20 tax year
individuals are only entitled to the minimum wage for the hours they work.
to be eligible, the employee must have been on the payroll on 28 February 2020. If they were hired later, they are not eligible. Anybody who was on the payroll on 28 Feb and has since been made redundant can be rehired and put on the scheme
furlough leave must be taken in minimum blocks of three weeks to be eligible for funding
there is nothing in the guidance which prohibits rotating furlough leave amongst employees, provided each employee is off for a period of at least three weeks
the employee must not be working at all. If they work for even an hour (presumably during their entire 3 week furlough period), they are not eligible. However, they are able to undertake training and do volunteer work, provided they do not provide services to or make any money for their employer.
when agreeing changes in hours (and acceptance of 80% pay), assuming the contract does not already allow for that, normal employment law applies. The employer must be careful not to discriminate in deciding who to offer furlough too.
employees on sick-pay or self-isolating cannot be furloughed, but can be furloughed afterwards. Employees who are shielding can be placed on furlough.
employees on maternity (or similar) leave can continue to draw SMP (or similar) payments. The guidance does not prohibit women on maternity leave agreeing to return to work early and then being furloughed, or electing to change to shared parental leave and then being furloughed.
employers can only claim once every three weeks. Claims can be backdated to 1 March 2020.

On 16 April the First Minister Arlene Foster announced that current COVID-19 lockdown measures will remain in place until May 9th.

Currently there are more questions than answers concerning the impact of these measures on businesses and it’s employees.

If you are unsure about anything at all please do not hesitate to contact us, we’re here to help you through this difficult time.

UPDATE

The govenrment announced on 12 May 2020 that the Job Retention Scheme has now been extended to October 2020.

SELF EMPLOYED - COVID 19

The government has issued it's direction to the HMRC on the self employed income support scheme.

In order to qualify the following conditions must be met:

a) carry on a trade the business of which has been adversely affected by reason of circumstances arising as a result of coronavirus or coronavirus disease,

(b) have delivered a tax return for a relevant tax year on or before 23 April 2020,

d) intend to continue to carry on a trade in the tax year 2020-21,

(e) if that person is a non-UK resident or has made a claim under section 809B of ITA 2007 (claim for remittance basis to apply), certify that the person’s trading profits are equal to or more than the person’s relevant income for any relevant tax year or years,

(f) be an individual, and (g) meet the profits condition. 4.3 In paragraph 4.2, “relevant tax year” means

The full guidance can be found here

Please call our 24 hour help line if you require any advice or assistance with understanding the direction.

Government Backed Loans Launched

The government has now launched the Bounce Back Loan for the UK’s small businesses. As of 4 May 2020 small businesses are now able to apply for between 2k-50k with the cash arriving in a matter of days.

The loans will be backed 100% backed by the government and will be interest free for the first 12 months with a flat rate of 2.5% thereafter.

The short application is just 7 questions and can be applied for on-line.

This will be a welcome relief to those small businesses who were not eligible to access to the Self- Employed Income Support Scheme (SEISS) for one or more reasons e.g Limited Company Directors.

There are a variety of lenders that are offering the loans including the 5 major banks.

This is the most recent initiative launched by the government since the onset of the coronavirus pandemic shook UK businesses in March 2020.

Bounce Back Loans can still be applied for even if you have applied for SEISS and Universal Credit.

Please call our 24 hour helpline if you require any advice or assistance. We’re here to help.

COVID-19 UPDATE

Boris Johnson has now issued the government's stratregy to rebuild the UK following the covid-19 pandemic. The document can be found here.

The PM has devised a 3 stage plan with reference to people returning to work

(page 26). He wants those who can work from home to do so but those who cannot to return to work from Wednesday 13 May 2020. He referenced such workers as being those working in manufacturing and construction.

The PM's stance has been criticised heavily by leaders in Scotland and Wales about not being consulted on the PM's strategy before it was published.

NEW FLEXIBLE FURLOUGH SCHEME

In early June the government issued its guidance on the new flexible furlough scheme that will apply from 1 July 2020.

It consists of 30 pages but we’ve summarised the salient points below:

With the exception of those parents that are returning from statutory leave (maternity, shared parental leave, adoption, paternity or parental bereavement leave), after the 1 July 2020, only employees that were furloughed for at least 3 weeks on or before the 30 June 2020 can be furloughed under the new flexible scheme commencing on 1 July 2020.

Those employees that were furloughed before 10 June can be brought back to work for any length of time and any amount of hours. Employers will be able to claim the pay for the hours not worked whilst the employee is furloughed,

10 June was last date an employee could be furloughed for the first time. If you re-furloughed someone after 10 June, you will have to wait the full three weeks before you can move them onto the new scheme even if that period ends after 1 July.

From 1 July 2020 the number of employees that are furloughed cannot exceed the number of employees that were originally furloughed under the old scheme. You will be unable to claim for any employees that exceed that number with the exception of returning parents.

Claims under the old scheme must be submitted by 31 July. After 1 July, you cannot submit claims that cross calendar months.

If employees are staying on furlough and not returning to work your pay calculations won’t change other than there will be an increase in what you receive from 1 August 2020.

If you do intend to bring staff back to work and it is on a part time basis you will need to work out what hours the employee normally works and offset it against the hours they have been furloughed.

Records of claims must be kept for 5/6 years concurrently that include, the claim reference number, the amount claimed and claim period for each employee, your calculations and for employees who are flexibly furloughed their usual hours including any calculations and the actual number of hours they have worked.

A new written is required to be issued to the employee for the new furlough scheme

If you find it all too confusing please contact us by email info@frankemploymentlawadvice.co.uk or

telephone 0772 553 5820 or 0116 367 0928 an advisor is ready to take your call now!

NEW REDUNDANCY PAY LAWS FOR FURLOUGHED EMPLOYEES

The Department for Business, Energy & Industrial Strategy has announced that as of 31 July 2020 all furloughed employees who are made redundant will receive redundancy payments at 100% of their normal pay, rather than at the reduced furlough rate.

The new law was enacted to protect the pay of those that suffer the misfortune of being made redundant due to the Covid19 pandemic.

Unless an employer has been able to make up the 20% loss, furloughed employees currently only receive 80% of their pay. The normal statutory caps still apply which is currently £538 per week with maximum redundancy pay being £16,140.

"It is important that employees receive the payments they are rightly entitled to," said Business Secretary Alok Sharma.

The new law also applies to notice pay and so furloughed employees will receive their notice pay at a 100% of their normal pay.

This will be a massive relief to those furloughed employees facing redundancy at this time.

According to BBC news ‘an estimated 150,000 people have so far been made redundant during the coronavirus crisis, but experts expect the figure to climb much higher, especially after the furlough scheme ends in October.’

The BBC also reported that the ‘National Institute of Economic and Social Research think tank warned that the ending of the furlough scheme could lead to 1.2 million Britons being unemployed by Christmas, pushing unemployment to 10% of the workforce.’

If you require support or advice on making redundancies please contact us info@frankemploymentlawadvice.co.uk or 0116 367 0928/0772 553 5820

End of Furlough Scheme

This government initiated furlough scheme is due to end on 31/10/20 where it paid 80% of an employee’s salaries to max of £2500 pm.

The furlough scheme will be replaced by the Job Support Scheme (JSS). Under the JSS the employee will need to be working at least 1/3 of their normal working hours. The employer and the government will then pay the employee for 2/3 of the hours not being worked.

JSS (Open)

Open From 1/11/20 for 6 months. Employees must be working 1/3 of their hours and be paid their their normal salary/pay; for the 2/3 of hours not worked employers will pay 33% and the government will pay 22%. This ensures that the employee will receive 77% of their earnings. SMEs are eligible but Large businesses must demontrate that their turnover has fallen. It is open to all employees and is designed to protect viable jobs in businesses that face lower demand due to winter months.

Do not have to have used furlough scheme previuously.
Cannot make employees redundant.
Paid from December 2020. Reimbursement scheme.
Must be agreed in writing with staff first.
Capped at £697.92.

Employees must have been in employment on 23 September 2020 and have made a PAYE Real Time Information (RTI) submission notifying payment to HMRC, any time from 6 April 2019 up to 23 September 2020.

JSS open is focused on people already in work. It is advisable for businesses to do a full cost analysis to ensure they're able to sustain the employer’s contribution.

Job Retention Bonus

£1,000 will be paid for each employee that is still employed at 31 Jan 2021. Under JRB employees must have been furloughed previously and have been on PAYE before 23/9/20. Employees cannot be made redundant under JRB. The LEL applies of £1560 over the 3 months up to 31/1/21. Employers can apply online from February 2021. The bonus counts as taxable earnings.

Kick Start Scheme (KSS)

Open to all Employers in the UK.
Covers 100% of NMW for minimum of 25 hours pw
Ages 16-24 (max£1,500 pp)
no extensive training

KSS creates a 6 month placement aimed at those on UC and at risk of long term unemployment. KSS will be managed by the HMRC and DWP.

The Government will pay the associated NI contributions. The placement must not be to replace an existing role or planned vacancies; it must be a new job. If businesses have 30 or more job placements they can apply on line. You must also show how it will benefit the organisation and the individual. Candidates will come through the DWP. This is another reimbursement scheme.

New Local Furlough Scheme

This is aimed at the hospitality industry. The new scheme is expected to pay two-thirds of workers’ wages for businesses that have been told to close to stop the spread of the coronavirus.

It includes pubs, bars and restaurants, as part of a three-tiered lockdown system to stop hospitals being overwhelmed by a surge in Covid-19 cases. This makes it more generous than the JSS, which subsidises a fifth of part-time wages, but less generous than the original furlough scheme, which subsidised 80 per cent of people’s wages. The scheme is expected to last as long as businesses are shut down.

Expanding JSS Scheme (closed)

If as a result of the covid19 measures imposed by the government your business has had to close down you maybe eligible for a grant. In order to claim the employee must ahve agreed to writng to temporarily stop working for a minimum of 7 consecutive days.

Under the scheme, the government will pay two-thirds (67 per cent) of employees’ wages – up to a maximum of £2,083.44 per employee per months. Eligible employees must be employed on 23 September 2020 and a PAYE Real Time Information (RTI) submission for, notifying payment to HMRC, any time from 6 April 2019 up to 23 September 2020.

Unlike the current scheme, employers will not be required to contribute any wages. However, they will have to pay national insurance and pension contributions where applicable as previously.

The scheme begins on 1 November and will be open for six months. But payments will be made in arrears and businesses will have to wait until early December to claim.

The Scheme will be reviewed in January 2021.

UPDATE 1 November 2020

The government has announced that it will now extend the furlough scheme due to end on 31 Ocotber 2020 for another month until December 2020. The shift resulted from the government's decision to order a national lockdown to commence on Thursday 5 November 2020 to stop the spread of the coronavirus.

JSS (Open)

Employers can now claim up 61.67% of their employees wages up to a maximum of £1,541.75 pm for any hours not worked by the employee. This means that employees will receive at least 73% of their normal pay provided they earn no more than the reference salary of £3,125 per month.

The employer's contribution has now reduced to 5% (upto a maximum of £125 pm) from the original contribution of 55% for the hours not worked by the employee. In addition employees need only work 1/5 of their normal working hours so as little as one day a week as opposed to the 1/3 that it was originally set at. This only applies to businesses that are still in operation.