Retaining Your Staff & Home Working
Below you will find information on:
- September Update
- Step by Step guide from HMRC
- Question & Answer Guide from Moray Chamber of Commerce
- Retention Bonus
- Martin Lewis’s Explanation of Furloughing
- Working whilst being furloughed
- Chartered Institute of Personnel and Development (CIPD) Guidance and Information (including a video guide on furlough leave & furlough guide)
- ACAS Help & Information (including Furlough letter template & webinars)
- UK Government Webinars
- Recruiting due to COVID-19?
- Redundancy help available
Job Rentention Scheme
Please read the below update from HMRC
Changes to the Coronavirus Job Retention Scheme from 1 September mean that employers will need to fund 10% of furloughed employees’ usual wages for the hours they do not work and continue to pay their National Insurance and pension contributions.
Make sure you have the latest information by joining the live webinar:
Extension to the Coronavirus Job Retention Scheme and flexible furloughing
We’ll provide an overview of the scheme, including flexible furloughing, examples of how to work out the amount you can claim and the changes for September and October.
We’ll also share information on the Job Retention Bonus, including how to check if you’re eligible.
If you haven’t been able to join our popular webinar about the Coronavirus (COVID-19) Statutory Sick Pay Rebate Scheme, more dates have now been added. Get the latest information on:
- who can claim
- who you can claim for
- how to make a claim
- what you may be entitled to, and more.
You can ask questions during all our live webinars using the on-screen text box.
Our webinars are constantly updated to provide the latest government guidance on changes as they develop.
From 1 July 2020, you’ll have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced to help people get back to work.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer. You will be required to submit data on the usual hours an employee would be expected to work in a claim period and actual hours worked.
If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.
From August, the government grant provided through the job retention scheme will be slowly tapered.
- in September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500
- in October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500 the cap on the furlough grant will be proportional to the hours not worked.
If you are a smaller employer, some or all of your employer NIC bills will be covered by the Employment Allowance, so you should not be significantly impacted by that part of the tapering of the government contribution.
Around a quarter of CJRS monthly claims relate to wages that are below the threshold where employer NICs and auto enrolment contributions are due, and so no employer contribution will be required for these furloughed employees in August.
How to claim
As you prepare to make a claim, please note:
- Here is the link to the online service
- the only way to make a claim is online – the service should be simple to use and any support you need available on GOV.UK; this will include help with calculating the amount you can claim
- you can make the claim yourself even if you usually use an agent
- claims will be paid within 6 working days; you should not contact us unless it is absolutely necessary – any queries should be directed to your agent, representative or our webchat service
- we cannot answer any queries from employees – they will need to raise these with you, as their employer, directly.
Information you will need before you make a claim
You will need to have the following before you claim:
- a Government Gateway (GG) ID and password – if you don’t already have a GG account, you can apply for one online, or by going to GOV.UK and searching for ‘HMRC services: sign in or register’
- be enrolled for PAYE online – if you aren’t registered yet, you can do so now, or by going to GOV.UK and searching for ‘PAYE Online for employers’
- the following information for each furloughed employee you will be claiming for:
- National Insurance number.
- Claim period and claim amount.
- PAYE/employee number (optional).
- if you have fewer than 100 furloughed staff – you will need to input information directly into the system for each employee
- if you have 100 or more furloughed staff – you will need to upload a file with information for each employee; we will accept the following file types: .xls .xlsx .csv .ods.
If you want an agent to act for you
- agents authorised to act for you on PAYE matters can make the claim on your behalf using their ID and password
- you will need to tell your agent which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you.
You should retain all records and calculations in respect of your claims.
Guidance on GOV.UK is being regularly updated so please review it frequently.”
Job Retention Scheme- Step by Step Guide for employers
This step by step guide explains the information that employers need to provide to HMRC to make a claim through the Coronavirus Job Retention Scheme (CJRS). It also describes the processes involved.
Please note that if you are an employer making a claim, you need to follow the processes explained in the guidance page Claim for your employees’ wages through the Coronavirus Job Retention Scheme on GOV.UK before you proceed with your claim.
Q&A guide from Moray Chamber and the Scottish Chambers of Commerce
Our partners at Moray Chamber of Commerce have been kind enough to share this Question and Answer Guide about the Job Retention Scheme.
The government will introduce a one-off payment of £1,000 to UK employers for every furloughed employee who remains continuously employed through to the end of January 2021. Employees must earn above the Lower Earnings Limit (£520 per month) on average between the end of the Coronavirus Job Retention Scheme and the end of January 2021. Payments will be made from February 2021. Further detail about the scheme will be announced by the end of July.
Martin Lewis’s Explanation of Furloughing
In a quick ‘rough’ video, Martin explains whether you can get your employer to give you 80%+ of your salary, even if you’re on a zero-hours contract, at home looking after the kids, self-isolating or even if you’ve lost your job.
Here is the link- https://youtu.be/tk_s2cIHGbw
Working Whilst being furloughed
Those furloughed can volunteer for the NHS without risking their pay.
The UK Government have stated that whilst an employee is furloughed they can get another job if their current contract allows it.
Please read the below statement:
“If your contract allows, you may undertake other employment while your current employer has placed you on furlough, and this will not affect the grant that they can claim under the scheme. You will need to be able to return to work for the employer that has placed you on furlough if they decide to stop furloughing you, and you must be able to undertake any training they require while on furlough. If you take on new employment, you should ensure you complete the starter checklist form with your new employer correctly. If you are furloughed from another employment, you should complete Statement C. Any activities undertaken while on furlough must be in line with the latest Public Health guidance during the COVID-19 outbreak.”
Chartered Institute of Personnel and Development (CIPD) Guidance and Information
CIPD Video Guide – Furlough Leave
- What does furlough mean?
- Which employees can be furloughed?
- Which employers can access the scheme?
- How do employers access the scheme?
CIPD – Coronavirus (COVID-19): furlough guide (April 2020)
ACAS Help & Information
Furlough Letter Template
A template for an agreement to temporarily send home an employee because there’s no work (‘furlough’).
Acas experts run regular webinars on employment law topics and employment relations. They’re free to join, you just need to register in advance.
View recordings of their recent Acas webinars on their website
Skills Development Scotland- support and information available to employers
Recruiting due to COVID-19
Skills Development Scotland has created the My World of Work job hub to showcase immediate job vacancies in Scotland. Employers can upload opportunities – it’s free, quick and easy to do. Simply upload your vacancy, and once approved will be available for job seekers to view at www.myworldofwork.co.uk/jobhub.
Redundancy help available
Partnership Action for Continuing Employment (PACE) is the Scottish Government’s initiative for responding to redundancy situations. PACE can help employers by supporting employees through the redundancy process, with free, impartial advice available to all, no matter the size of business.
Changes to statutory payments
Increases to the National Minimum Wage
National Living Wage for workers aged 25 and over increases to £8.72 per hour on 1 April 2020. The national minimum wage (NMW) increases:
- from £7.70 to £8.20 for 21 to 24 year olds
- from £6.15 to £6.45 for 18 to 20 year olds
- from £4.35 to £4.55 for 16 and 17 year olds
- from £3.90 to £4.15 for apprentices
Make sure you check the rates and update pay roll so your staff are paid correctly. For more information, see National Minimum Wage and National Living Wage rates
New statutory rates
Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Shared Parental Pay (ShPP) and Statutory Adoption Pay (SAP) increases to £151.20 on 5 April 2020.
The rate of statutory sick pay will increase from £94.25 to £95.85 on 6 April 2020. For more information, see Rates and thresholds for employers 2020 to 2021
From 6th April 2020, employers will have to use a reference period of 52 weeks, (instead of the current 12 weeks) when calculating statutory holiday pay for staff whose pay varies. For more information, see Calculating holiday pay for workers without fixed hours or pay.
With many of us now working from home, here are a 5 tips from the BBC on how to work well from home.
You can read the full article here- https://www.bbc.co.uk/news/business-51868894
Here is a link to advice for employers and employees who are working from home during the COVID-19 pandemic- https://www.acas.org.uk/working-from-home