Government measures in key jurisdictions 4th edition - Flipbook - Page 148
UnitedKingdom
Employment
What
financial support is
the government
providing
to businesses and
to individuals on
employment issues?
The UK Government introduced The Coronavirus Job Retention Scheme (or "furlough scheme")
in March 2020 under which employers could 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 initially covered 80% of an employee’s wage, up to a maximum of £2,500 per
month. To find out more: Coronavirus Job Retention Scheme
•
The Coronavirus Job Retention Scheme was originally intended to last for three months, but
was extended until the end of October 2020, albeit in a modified form from August. From
August employers have had to pay employer National Insurance Contributions and pension
contributions for the hours employees are on furlough. In September and October,
employers also need to contribute to the wage costs of furloughed employees (10% and 20%
respectively). The government also introduced the option of “flexible furlough”, which gives
employers greater flexibility to bring furloughed employees back part time, with employers
paying employees in full for any hours they work, and claiming a furlough grant for any
normal working hours that employees do not work. To find out more: Coronavirus: Flexible
furloughing.
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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 announced a Job Retention Bonus to incentivise employers to keep
on furloughed employees when the furlough scheme finishes at the end of
October. Employers will receive a one-off taxable bonus of £1,000 for each furloughed
employee who is still employed on 31 January 2021. To find out more: The Chancellor’s Plan
for Jobs and a Job Retention Bonus for employers. And: Employment updates from 1 August changes to home working, the furlough scheme and further detail on the Job Retention
Bonus.
•
The UK Government has also introduced changes to Statutory Sick Pay, which
can now be paid both to those who are displaying symptoms of Coronavirus and to those
who live with someone who has symptoms. Until the end of July 2020, SSP was also
payable or those in clinically extremely vulnerable groups who had been notified that
they should stay at home at all times (known as “shielding”). However, the guidance on
shielding was “paused” on 1 August 2020 and so SSP is no longer payable to people in this
category of employees. To find out more: An update on Statutory
Sick Pay. And: Employment updates from 1 August - changes to home working, the furlough
scheme and further detail on the Job Retention Bonus.
•
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 has 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. From 1 August, the government lifted its official advice that everyone should work
from home if they can and instead has given employers discretion to decide how their staff
can work safely, which can include back in the workplace if employers follow “COVID-19
Secure” guidelines. The Government has published a series of guidance documents for
employers aimed at helping ensure workplaces are as safe as possible.
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Government measures in key jurisdictions
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