Government measures in key jurisdictions 3rd edition final - Flipbook - Page 138
UnitedKingdom
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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” (i.e. 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: the scheme is now open and there is yet more guidance
Employment •
What financial
support is the
government
providing to
businesses and to
individuals on
employment
issues?
For more information, see our articles Covid-19 Government help for UK businesses and Covid19 Government funding for UK businesses update – further help for smaller UK businesses
A further £750 million will also be available as loans and grants for small businesses focusing on
research and development.
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The UK Government has recently made a number of changes to the Coronavirus Job Retention
Scheme, including:
- It is no longer possible to furlough someone who has not previously been furloughed.
- From 1 July, furloughed employees can be brought back to work part-time, while still being
furloughed for hours they don’t work. Employers will bear the cost in full for any hours worked by
furloughed employees and can claim a furlough grant to cover the balance between hours worked
and an employee’s “usual hours”.
- From August, employers will need to bear the cost of any employer pension or National Insurance
Contributions. In September, employers will also need to contribute 10% of wage costs; in October
this will increase to 20% of wage costs.
- The Coronavirus Job Retention Scheme will end on 31 October 2020.
To find out more: Q&A on understanding flexible furlough and the extended furlough scheme
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A similar scheme has been put in place for the self-employed: Coronavirus - Self- Employed Income
Support Scheme – what is the government proposing?
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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
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The UK Government has announced that changes to IR35 (also known as off-payroll 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
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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
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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