For any period of furlough ending on or before 30 June 2021, employers can claim 80% of an employee’s usual salary for hours not worked up to a maximum of £2,500 per month.
On 1 July 2021 this changes to 70%, capped at £2,187.50 per month and the employer must pay the additional 10% to the employee.
Then from 1 August 2021 employers can claim 60% as furlough to a maximum of £1,875 per month and must pay the additional 20% to employees. Employers will still be required to pay NI and pension contributions.
For periods ending on or before 30 April 2021, employers can claim for employees who were employed on 30 October 2020, as long as they made a PAYE RTI submission to HMRC between 20 March 2020 and 2 March 2021.
Employees should only be placed on furlough in situations where the employer's business has been affected by Covid-19 restrictions or had a lower uptake as a result.
The intention of furlough is that employees return to work afterwards. Therefore, if it is likely the role will still be viable at the end of the furlough scheme then to put an employee on furlough instead of making them redundant should be considered as an alternative to redundancy.
However, there’s no requirement to furlough an employee in a situation where it’s just prolonging the inevitable and they will always be made redundant as the role is no longer viable. In these cases an employer can make the employee redundant instead of putting them on or continuing to furlough them.
Employers should be aware that at a future date, they may be required to justify why an employee was made redundant rather than furloughed. Employers should take legal advice before starting a redundancy process.
There have been four changes to SSP:
- SSP is now payable from day one of sickness
- The first 14 days of SSP are reclaimable from the government
- Employees who are not sick but who are isolating in line with public health England/Wales advice are entitled to SSP
- Employees can provide an isolation note, available from NHS 111 as opposed to a fit note from the doctor.
SSP has been extended to those employees who have been told to self-isolate under the new track and trace system. This is where a person has been notified that they have been in contact with a person with COVID-19 and therefore must self-isolate for 14 days, they will be entitled to be paid SSP.
If you're put at risk of redundancy, your employer has to follow a fair redundancy process and consult with you.
This is dependent on the size of your employer and how many employees are at risk of redundancy so you should take specific advice if you’re in this situation. The amount you are paid for redundancy is dependent upon your age, length or service and weekly salary.
If you’ve been advised to self-isolate because you or someone in your household has symptoms, you are entitled to Statutory Sick Pay (SSP).
You may be entitled to company sick pay depending on your contract of employment. You are also entitled to SSP if you've been told to self isolate under the track and trace scheme.
Being advised to self-isolate because you're vulnerable is not the same as self-isolating because you have symptoms or because someone in your household does, and you are therefore not entitled to Statutory Sick Pay (SSP).
You should speak to your employer about the option to work from home; if this isn’t possible you can ask your employer to furlough you. If you do not attend work, this must be in agreement with your employer.
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