Updated 26 March 9pm
Also see Furlough Scheme Updates, published on 8 June 2020
Statutory Sick Pay
Ordinarily employers cannot reclaim any statutory sick pay (SSP) paid to employees. Legislation is to be introduced to allow employers to reclaim up to two weeks SSP for each employee who has been off work due to the coronavirus.
Employers should maintain records of staff absence:
- Employees do not have to provide a doctor’s note
- An isolation note from NHS 111 online (click here)
- Anyone staying at home because they live with someone who has symptoms can get a note from the NHS website (click here)
Employers who had fewer than 250 employees as of 28 February 2020 are eligible.
The mechanism for reclaiming these SSP payments is not yet in place.
Coronavirus Job Retention Scheme
This is intended to support payment of wages to employees that would otherwise be laid off during the crisis. Instead of being laid off, employees can be kept on the payroll and are classified as furloughed.
It is not intended to support payment of wages for employees that continue to work. To qualify for the scheme, employees must not undertake any work for the employer while they are furloughed.
HMRC will reimburse 80% of a furloughed worker’s wage costs, up to £2,500 per month. Employers can make up the wages to 100% but are not required to do so.
Directors who take a minimum salary topped up with dividends can access the scheme but in relation to salary only. They must also meet the ‘no working’ condition.
To access the scheme, employers will need to:
- Designate the affected employees as furloughed and notify them of the change, and
- Tell HMRC about the earnings of their furloughed employees through a new online portal
The online portal and a system for reimbursing the wages payments are not yet available, but HMRC have said that they are working urgently to provide these and hope to begin making payments by the end of April.
There are a lot of as-yet unanswered questions about this scheme, for example some employees had already been laid off before it was announced. More information will be available in the coming days.
Employees and self-employed
Help for the self-employed has now been announced and the relevant blog is here.
HMRC has some helpful guidance and links available for employees on its website here.
Please contact me if you have any queries.
