Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 101
United Kingdom
2
Employment
What financial
support is the
government
providing to
businesses and
to individuals
on employment
issues?
•
The UK Government has introduced The Coronavirus Job Retention Scheme
under which employers can access a grant to cover the wages for employees on
“furlough” (ie still on their employer’s payroll but not providing any work). Under
the Scheme the grant will cover 80% of an employee’s wage, up to a maximum of
£2,500 per month. To find out more: Coronavirus - Job Retention Scheme is now
open and there is yet more guidance
•
The government has announced that the Coronavirus Job Retention Scheme will
be extended until the end of October 2020, albeit in a modified form from August.
This will include giving employers greater flexibility to bring furloughed employees
back part time, with employers starting to share with the government the cost
of salaries of furloughed employees. More details are due by the end of May:
Chancellor extends the Coronavirus Job Retention Scheme
•
A similar scheme has been put in place for the self-employed: Coronavirus - SelfEmployed Income Support Scheme – what is the government proposing?
•
The UK Government has also introduced changes to Statutory Sick Pay, which can
now be paid not only to those who are displaying symptoms of Coronavirus, but
also to those who live with someone who has symptoms or to those in clinically
extremely vulnerable groups who have been notified that they should stay at
home at all times until the end of June (known as “shielding”). To find out more:
Coronavirus - An update on Statutory Sick Pay
•
The UK Government has announced that changes to IR35 (also known as offpayroll working) in the private sector, which would potentially have affected the
taxation of payments to consultants and contractors, have been delayed by a
year. The intention had been to extend IR35 to medium and large companies
in the private sector from 6 April, however, the Treasury has confirmed that the
changes will be postponed until 6 April 2021 in response to the ongoing spread of
Coronavirus. To find out more: IR35 tax rules delayed by 12 months
•
On 10 May, the UK Government announced the gradual lifting of certain lockdown
measures. As part of this, it said that anyone who could not work from home should
now be “actively encouraged” to return to work, albeit avoiding public transport
wherever possible. The Government has published a series of guidance documents
for employers aimed at helping ensure workplaces are as safe as possible:
Government guidance on making workplaces safe for employees
•
To assist employers and employees, the UK Government has also amended the
Working Time Regulations 1998 (which govern holiday entitlement in the UK) to
relax the carrying over of holiday entitlement: under these new rules, workers
will be allowed to carry-over up to four weeks’ holiday into the next two holiday
years. The Government has also published guidance on holiday entitlement and
pay during the Coronavirus pandemic: Holiday entitlement and pay during the
COVID-19 pandemic and the impact of this on the furlough scheme
Government measures in key jurisdictions
101