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Covid-19 Coronavirus Job Retention Scheme


Hibberts Blog Covid-19 Coronavirus Job Retention Scheme

The Covid-19 Job Retention Scheme has been launched as a result of the pandemic, which has led to extremely difficult trading conditions on an unrecognisable scale for a huge variety of businesses large and small across the UK. Mandatory closures have been implemented in many sectors. Last Friday saw the Covid-19 Coronavirus Job Retention Scheme announced and now, a week later, we have more detail about the Scheme and how it will operate.

It is essential that employers obtain expert employment law advice about how to respond to the Covid-19 pandemic and, if they are wanting to furlough employees under the Scheme, how to do so fairly. You may also benefit from advice upon how to implement the Scheme and we can provide you with template letters.

To summarise the Covid-19 Coronavirus Job Retention Scheme:-

  • It is a temporary scheme open to all UK employers & will be open for at least 3 months starting on 1 March 2020
  • It is to support employers whose operations have been severely affected by Covid-19 Coronavirus
  • Employers will be able to use a portal to claim for 80% of employees usual monthly wage costs, up to a cap of £2,500 a month
  • Employers will be able to claim for the associated Employers National Insurance contributions and minimum automatic enrolment employer pension contributions on those wages
  • The Scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020. You must have a UK bank account
  • Furloughed means that the employee is on a ‘leave of absence’ and they cannot carry out any work for the employer whilst furloughed
  • Employees whose start date is after 28 February 2020 will not be eligible for the Scheme
  • The Scheme is expected to be up & running by the end of April 2020

Employers will have lots of questions about the circumstances that may apply to different employees and circumstances such as:

  • Can you furlough an employee who is off sick?
  • What is the difference between self-isolating, shielding and social distancing?
  • How long does the employee have to be furloughed for?
  • Can I have them work part-time under the Scheme?
  • Can I furlough an employee who joined us on Monday 2nd March?
  • How do we calculate the 80% pay?
  • What will we need to make a claim?

Contact the Hibberts employment law team to quickly obtain answers to those questions from an employment law specialist before you rush to furlough staff and place your business at risk.

If you have questions about any of these matters contact Hibberts solicitors and see how we can assist you and your business. Finally, it is vital that you keep up to date with the latest information and advice as this is a very fluid situation which is changing daily.

Should you or your business require employment law advice at this difficult time then please don’t hesitate to contact us. For more information, visit us at Employment Law