Coronavirus – An Update For Employers

By Rachel Davis

Principal Associate

With the coronavirus situation rapidly evolving, it is posing significant challenges to many organisations who are already suffering from the effects the pandemic is having on the future of their businesses.

The latest advice and guidance covers the following key issues for employers:

Working From Home

Current government advice is for everyone to stay at home, except in specific situations, which includes only going to work where this absolutely cannot be done from home.

For any employee working from home, the employer should:

  • Pay the employee as usual
  • Keep in regular contact
  • Check on the employee’s health and wellbeing.

Furlough Scheme

The government is providing financial support for employees who are temporarily sent home because there is no work (furloughed workers).

The furlough scheme is available to all UK employers that had a PAYE system in place on 28 February 2020. The scheme remains a work in progress but the key points are:

  • Employers can reclaim up to 80% of wage costs up to a maximum of £2,500 (gross) per month and can top up to 100% of salary at their discretion. Commission and bonuses are not included
  • Employers can also claim the associated employer National Insurance and minimum pension contributions
  • To be eligible, the employee must have been on the payroll on 28 February 2020. Anyone who was on the payroll on 28 February 2020 and has since been made redundant can be rehired
  • Furlough leave must be taken in minimum blocks of three weeks. There is nothing in the current guidance which prohibits furlough leave being rotated amongst employees
  • Employers must select and tell affected employees that they are to be furloughed and employees must agree to go on furlough leave
  • The employer must not discriminate when deciding who to offer furlough leave
  • Employees on sick pay or self-isolating cannot be furloughed until after the period of sick leave or self-isolation ends
  • Employees who are ‘shielding’ for 12 weeks can be placed on furlough leave
  • People with more than one job can be placed on furlough leave for one job and continue with their other job, or can be put on furlough leave for both jobs
  • If women on maternity leave are offered enhanced contractual pay, as well as statutory maternity pay, this is included as wage costs that can be claimed through the scheme
  • The scheme will be live before the end of April and employees will be able to claim using an online portal system
  • Claims can be backdated to 1 March 2020, providing the employee had stopped working at that point.

Absence, Self-Isolation and Sick Pay

Employees and workers must be paid Statutory Sick Pay (SSP) if they need to self-isolate for any of the following reasons:

  • They have coronavirus
  • They have coronavirus symptoms
  • Someone in their household has coronavirus symptoms
  • They have been told to self-isolate by a doctor or the NHS.

If someone has symptoms, they must self-isolate for seven days; everyone else in their household must self-isolate for 14 days.

Employees can self-certify for the first seven days off work but, for a longer period, can get an online self-isolation note from the NHS website. Employers should be flexible about asking for medical evidence if an employee is self-isolating.

Statutory Sick Pay (SSP) is now payable from the first day of sickness, instead of day four.

Employers may offer to pay more than SSP, i.e. ‘contractual’ sick pay.

If An Employee Does Not Want To Go To Work

Some people might feel they don’t want to go to work because they are worried about catching COVID-19, particularly those at higher risk. An employer should listen to any concerns and take appropriate steps to protect everyone.

Employers can encourage the use of annual leave and can ask staff to use leave on set dates, providing they give twice the amount of notice of the length of the proposed holiday, i.e. two weeks’ notice to take one week’s holiday. Alternatively, employers may agree to employees taking unpaid leave.

Vulnerable People and Those at High Risk

Employers must take extra steps for any employee who is in a vulnerable group, including but not limited to, those who:

  • Have a long-term health condition, such as asthma, diabetes or heart disease, or a weakened immune system
  • Are pregnant
  • Are aged 70 or over
  • Care for someone with a health condition that may put them at greater risk.

Shielding for Extremely Vulnerable People

People with an underlying health condition, and therefore at high risk of severe illness from coronavirus, will have received a letter from the NHS asking them to take extra steps to protect themselves, referred to as ‘shielding’.

Employees who are advised to start shielding should stay at home for at least 12 weeks. Employers should support staff following shielding guidelines.

Holiday/Leave Entitlement

During the coronavirus outbreak it may not be possible for staff to take all their holiday entitlement in the current holiday year.

The government has introduced a temporary new law allowing employees and workers to carry over up to four weeks’ paid holiday over a two-year period if annual leave has not been taken due to coronavirus.

If someone is temporarily sent home because there is no work and put on ‘furlough leave’, they will continue to accrue holiday in the usual way.

If An Employee Needs Time Off Work to Look After a Dependant

Employees are entitled to time off work to help someone who depends on them in an unexpected event or emergency and includes situations such as:

  • To look after children because their school has closed
  • To help a dependant who is sick or needs to go into isolation or hospital

There is no statutory right for employees to be paid for this time off, but some employers may offer to pay employees as normal, depending on the contract or workplace policy.