30/07-2020

1^st August changes to furlough scheme and the end of Shielding (probably)

Furlough scheme

July was the last month for the furlough scheme in its current guise – from 1^st August employers will be required to meet the employment costs (minimum pension contributions and Employer National Insurance contributions) of a furloughed workers wages (to a maximum of £2,500), in September the furlough scheme will pick up 70% of an employee’s wages to a maximum of £2187.50 and in October 60% to a maximum of £1,875. In September and October employers will be required to meet the cost of the reducing government contribution ensuring furloughed workers continue to receive 80% of their salaries to a maximum of £2,500 per month.

In total the furlough scheme has benefitted 9.2m employees, 1.2m employers and 2.7m self employed people at a total cost of £29 billion.

While myHRdept has seen an increase in redundancy assistance requests as the end of the furlough scheme approaches clients have also reported a return of business activity with some reporting sales returning already to 90% of pre-Covid levels.

Shielding

We are expecting the requirement to shield to come to an end 1^st August, although there is still some possibility that it may extend beyond 1^st August in the event of an increase in Covid cases.

Especially vulnerable people (about 2.2 million of them) have been written to by the NHS and asked to remain at home and have minimal contact with others. For those on their own food parcels have been delivered to them. As the number of UK cases has fallen the risks to shielding employees are judged to have lessened and from 1^st August employees can return to work provided the workplace is Covid-safe.

Employers must carry out a Covid risk assessment and enforce safe working practices dealing with any non compliance.

See our article on Covid-safe workplaces here.

However, just because government guidance is changing does not mean that employers should be strong arming reluctant vulnerable employees back to the workplace. If the employee has a ‘disability’ as defined in the Equality Act, there is a legal duty to make reasonable adjustments. A ‘reasonable adjustment’ would certainly involve working from home if homeworking is possible. There would be little prospect of winning an argument that homeworking is not reasonably possible in a situation where a shielding employee has been homeworking during lockdown.

No more SSP for Shielding

From 1^st August, unless shielding is extended or reintroduced, shielding employees will no longer be entitled to receive SSP.

Vulnerable employees unable or unwilling to return to workplace

If a vulnerable employee cannot work from home or return to a sufficiently Covid safe workplace employers may wish to consider:

• re-furloughing a worker who has been previously furloughed;
• granting unpaid leave (with the worker’s agreement)
• paid holiday
• unpaid sabbatical

If you’re thinking of outsourcing your HR or employment law needs, why not contact myHRdept? Call us on 01628 820515 to discuss your requirements or contact us and we’ll call you back.