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23Feb

COVID-19 Update – Heading for the Budget

February 23, 2021 admin Advice, COVID-19

As we all seemed to have ‘settled’ into Lockdown #3, it has been a few weeks since my last COVID-19 update. You’d have to have been on another planet, though, to have missed the Prime Minister’s address last night setting out his roadmap to recovery, and so, following this, I thought I should touch base once again.

So, from this roadmap we now have a good indication of when things may open and this has to be positive news, allowing us all to start planning for the resumption of our businesses and, of course, our own personal lives.

What was missing last night though, were the support measures that the government will introduce or continue to leave in place as we embark on this road to recovery.

It is obvious that businesses that have been struggling through aren’t going to be rubbing their hands with glee and counting their profits at the end of week one, month one or even, in many cases, year one. It is going to be a long, hard, slow and, hopefully, steady recovery for so many of us and thus it is vital that the government recognises this in the support packages that I hope will be announced when the chancellor reveals the detail of his spring budget next week (Wednesday 3 March).

I hope that he will announce a number of recovery support measures for the business sector, including the continuation of the local support grants scheme. For me, furlough absolutely has to be extended well beyond its current end date of 30 April and I would hope that we will see the 80% flexible furlough retained for a number of months before moving to gradually reduced levels – 70%, 60%, 50% – similar to how this was envisaged last year before we headed into the tiered approach and then the second and third lockdowns.

An extension to furlough will be critical as I am sure that there will be many businesses that will not be able to bring back all of their furloughed employees immediately and I also fear that we will see further redundancies as businesses evaluate their respective paths to recovery.

Those businesses that took out Bounce Back Loans received positive news recently in that these loans can now be paid back over 10 years instead of 6, and payment holidays can be taken by businesses.

Another positive is that businesses that had struggled to claim on their business interruption insurance may now have that opportunity following the recent judgement by the Supreme Court. If you want to see whether you might be able to claim, take a look at the FCA’s on-line policy checker:

https://www.fca.org.uk/firms/business-interruption-insurance/policy-checker

There are other things that we will need to keep an eye on in next week’s budget statement that could have a negative impact and counter other possible support measures – things such as VAT, National Insurance and Corporation Tax. Let’s keep our fingers crossed and hope that the government does not undermine the positive support measures that they have put in place for businesses over the past 11 months.

As always, give me a call should you require any further information or if you need advice on any employment matters.

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21Jan

COVID-19 Update – Annual Leave

January 21, 2021 admin Advice, COVID-19

Since the Prime Minister’s announcement on the evening of Monday 4 January, putting the country back into lockdown, I have been asked a number of questions relating to annual leave and, specifically, whether an employer can require an employee to take annual leave during furlough.
Generally, employers can require employees to take a period of annual leave during the coronavirus (COVID-19) outbreak, provided that they give the employee the required notice. This is unless there is an agreement to the contrary (such as in the employee’s contract or a collective agreement). As previously advised, the employer must give the employee a period of notice at least twice as long as the period of leave it requires them to take. For example, if the employer requires the employee to take one week’s annual leave, they must give them at least two weeks’ advance notice.


Where an employee is furloughed during lockdown, it is less certain that the employer can require them to take annual leave (although the need to pay employees their normal weekly pay during a period of annual leave may mean this is an unattractive option for many employers in any event).
The most up-to-date government guidance on Holiday entitlement and pay during coronavirus (COVID-19) states that:
“If an employer requires a worker to take holiday while on furlough, the employer should consider whether any restrictions the worker is under, such as the need to socially distance or self-isolate, would prevent the worker from resting, relaxing and enjoying leisure time, which is the fundamental purpose of holiday.”
While case law has found that employees can be required to take annual leave at a time when they would not otherwise be working, it is not clear if the same principles would apply during furlough in a lockdown situation. Therefore, the safest option for an employer wishing to avoid the risk of a dispute is not to require employees to use their annual leave during furlough for the foreseeable future.


However, this does not mean that an employer cannot request employees to use their holiday whilst furloughed but, should this be the preferred option, they should seek their agreement to this, rather than imposing a period of annual leave on them. Employees in receipt of reduced pay may indeed be happy to take annual leave while they are furloughed, as this leave period would be on full pay.
As you will be aware from my previous updates, employees will be able to carry over unused leave that has been accrued during the period of the COVID-19 pandemic. Last year, the government passed new emergency legislation to ensure that businesses have the flexibility they need to respond to the pandemic and to protect workers from losing their statutory holiday entitlement. These new regulations enable workers to carry holiday forward where the impact of COVID-19 means that it has not been reasonably practicable to take it in the leave year to which it relates.


Where it has not been reasonably practicable for the worker to take some or all of the 4 weeks’ holiday due to the effects of coronavirus, the untaken amount may be carried forward into the following 2 leave years. When calculating how much holiday a worker can carry forwards, employers must give workers the opportunity to take any leave that they cannot carry forward before the end of the leave year.


As always, give me a call should you require any further information or advice on the above, or on any other employment matter.

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17Dec

COVID-19 Update – Further Extension of the Furlough Scheme

December 17, 2020 admin Advice, COVID-19

In a surprise announcement earlier today, the UK government has advised that the Coronavirus Job Retention Scheme (CJRS) will remain at the current level of 80% until the end of April 2021.

Having previously extended the scheme to 31 March 2021, the government was due to undertake a review in January. One can only assume that this further extension is in anticipation of the third spike in the New Year that is being mooted following the relaxation of the COVID rules over the Christmas period.

The period for making claims for December is now open and these must be made by 14 January 2021.

To help you plan ahead to meet the monthly deadlines, here is a list of the key dates:

• 14 January 2021 – final date to submit claims for December 2020
• 15 February 2021 – final date to submit claims for January 2021
• 15 March 2021 – final date to submit claims for February 2021
• 14 April 2021 – final date to submit claims for March 2021
• 14 May 2021 – final date to submit claims for April 2021

Picking up on a couple of questions that I have been asked I am sharing these, with my responses, below:

Can I use CJRS grants to pay for holiday leave?

If you have furloughed employees because of the effect of coronavirus on your business, you can claim under the CJRS for periods of paid annual leave they take while on furlough, including for bank holidays such as Christmas Day or Boxing Day.

If your employee is flexibly furloughed, you can count any time taken as annual leave as furloughed hours rather than working hours.

However, it must be stressed that, for periods of annual leave, employees are entitled to receive their normal full pay, although you can claim 80% of their usual wages for these hours. However, you should not place employees on furlough just because they are going to be on paid leave.

Can I include a Christmas bonus in my calculation for the grant?

You can claim for regular payments that you are contractually obliged to pay your employees, including compulsory commission, fees and overtime. However, you cannot claim for discretionary commission, non-contractual bonuses (including tips) and non-cash payments.

As always, please don’t hesitate to call me if you have any questions.

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17Dec

Brexit – Guidance on employing EU, EEA and Swiss citizens

December 17, 2020 admin Advice

As a change from all things COVID, I thought I would provide you with an update in respect of Brexit – the other ‘hot topic’ of the moment.
The Home Office has recently released additional guidance for employers on employing EU, EEA and Swiss citizens in the U.K. after the end of the Brexit transition period.
So, firstly, a few key points…
• The way employers are required to check a job applicant’s right to work will be unchanged until 30 June 2021. Until this date, EU, EEA and Swiss citizens can prove their right to work as they do now, using a passport or national identity card or the online right to work checking service.
• The guidance reiterates that employers have a duty not to discriminate against EU, EEA or Swiss citizens. Employers cannot require applicants to show their status under the EU Settlement Scheme until after 30 June 2021.
• Irish citizens will continue to prove their right to work in the U.K. as they do now. Irish citizens are permitted to work in the U.K. by virtue of the Common Travel Area (“CTA”) between the U.K. and Ireland.
• EU, EEA and Swiss citizens and their family members who are residing in the U.K. by 31 December 2020 are reminded they have until 30 June 2021, to apply under the EU Settlement Scheme (“EUSS”) to continue living in the U.K. after this date.
• EU, EEA and Swiss citizens and their family members arriving in the U.K. from 1 January, will be required to make an application under the new immigration system to obtain a working visa in advance of moving to the U.K. This will require a job offer from an approved sponsor.

And now for some background…

The U.K. left the European Union on 31 January 2020, triggering a transition period ending on 31 December 2020. Freedom of movement will end 1 January 2021, and the U.K. will have a new immigration system, applicable to both European and non-Europeans alike.

While EU, EEA and Swiss citizens already living in the U.K. by the end of the transition period are able to secure their status in the U.K. using the EUSS (with a deadline of 30 June 2021), those arriving from 1 January 2021 will have to apply under the new immigration system.

And some analysis and comment…

This new guidance provides further clarity on a range of right to work obligations for businesses employing European nationals from 1 January 2021.

The new guidance also raises a question, however, surrounding what documentation can and cannot be requested, particularly for new European hires from 1 January 2021. It is clear that any EU, EEA or Swiss national who is already employed in the U.K. on 31 December 2020, will not require a retrospective right to work check. While these individuals are nonetheless required to apply under the EU Settlement Scheme (“EUSS”) by June 30, 2021, employers cannot require them to demonstrate they have made the application.

For new hires from 1 January 2021, it is clear that any EU, EEA or Swiss citizen not resident in the U.K. will require sponsorship under the new immigration system prior to starting employment.

For new hires of any European nationals already residing in the U.K., while these individuals may have already applied under the EUSS (and are required to do so by 30 June 2021), employers cannot require them to show any status granted under the EUSS until after 30 June 2021.

The guidance is therefore very clear on the requirements for right to work checks on EU, EEA and Swiss new hires between 1 January 2021 and 30 June 2021. Employers can check the job applicant’s right to work as they do now, by viewing either the passport or national identity card, or conducting an online check.

Crucially, employers cannot discriminate and refuse to employ an EU, EEA or Swiss national on the basis they have not yet obtained a status under the EUSS until after 30 June 2021.

Further, employers can be assured they will have a full statutory defence against any illegal employment even from just the passport copies for this population. Retrospective checks are not required on existing employees.

Nonetheless, employers should still be encouraged to provide regular communications to their employees to remind them to apply under the EUSS by 30 June 2021. In fact, this approach is encouraged by the Home Office, who have provided an “Employer Toolkit” – https://www.gov.uk/government/collections/eu-settlement-scheme-employer-toolkit – to provide signposting to businesses to help support their European citizen employees to stay in the U.K.

While the employer will have followed all the right to work guidance to establish a statutory defence, should any employee not have made the application by 30 June 2021, the individuals in question nonetheless require the status to continue lawfully residing in the U.K. Apart from the right to work, holding status under the EUSS is also required for accessing the NHS, schooling, travelling in and out the U.K., banking and renting a property, for instance.

So, in summary…
• Before 30 June 2021, there is essentially no change to the right to work process for employers hiring EU, EEA and Swiss nationals. If the individual is resident in the U.K. a simple right to work check can be carried out using the passport.
• Signposting can be given to employees regarding how to apply under the EUSS, but evidence cannot be requested that this has been done or permission obtained.
• If the EU, EEA or Swiss national is not resident in the U.K., a formal application is required under the new immigration system.
• No retrospective checks are required on existing employees.
• After 30 June 2021, all EU, EEA and Swiss national new hires will be required to show their permission to work in the U.K. either by holding a status under the EUSS or by first making an application under the new system.

As a final consideration…

It remains to be seen if any retrospective checks on holding a status under the EUSS will be required after 30 June 2021, in particular for those individuals hired between 1 January and 30 June 2021. Further guidance is expected to be released by the Home Office as we approach the end of the ‘period of grace’ on 30 June 2021.

In the meantime, employers can be reassured that the requirements for right to work checks on European nationals from January 2021 are perhaps less onerous than may have been anticipated. Indeed, in effect, the right to work check process essentially remains unchanged until after 30 June 2021, notwithstanding the fact that new European hires who are not resident in the U.K. will require working permission under the new immigration system.

If you have any questions relating to this, or to any other employment issue, please don’t hesitate to call me.

Read more
17Dec

Brexit – Guidance on employing EU, EEA and Swiss citizens

December 17, 2020 admin Advice

As a change from all things COVID, I thought I would provide you with an update in respect of Brexit – the other ‘hot topic’ of the moment.
The Home Office has recently released additional guidance for employers on employing EU, EEA and Swiss citizens in the U.K. after the end of the Brexit transition period.
So, firstly, a few key points…
• The way employers are required to check a job applicant’s right to work will be unchanged until 30 June 2021. Until this date, EU, EEA and Swiss citizens can prove their right to work as they do now, using a passport or national identity card or the online right to work checking service.
• The guidance reiterates that employers have a duty not to discriminate against EU, EEA or Swiss citizens. Employers cannot require applicants to show their status under the EU Settlement Scheme until after 30 June 2021.
• Irish citizens will continue to prove their right to work in the U.K. as they do now. Irish citizens are permitted to work in the U.K. by virtue of the Common Travel Area (“CTA”) between the U.K. and Ireland.
• EU, EEA and Swiss citizens and their family members who are residing in the U.K. by 31 December 2020 are reminded they have until 30 June 2021, to apply under the EU Settlement Scheme (“EUSS”) to continue living in the U.K. after this date.
• EU, EEA and Swiss citizens and their family members arriving in the U.K. from 1 January, will be required to make an application under the new immigration system to obtain a working visa in advance of moving to the U.K. This will require a job offer from an approved sponsor.

And now for some background…

The U.K. left the European Union on 31 January 2020, triggering a transition period ending on 31 December 2020. Freedom of movement will end 1 January 2021, and the U.K. will have a new immigration system, applicable to both European and non-Europeans alike.

While EU, EEA and Swiss citizens already living in the U.K. by the end of the transition period are able to secure their status in the U.K. using the EUSS (with a deadline of 30 June 2021), those arriving from 1 January 2021 will have to apply under the new immigration system.

And some analysis and comment…

This new guidance provides further clarity on a range of right to work obligations for businesses employing European nationals from 1 January 2021.

The new guidance also raises a question, however, surrounding what documentation can and cannot be requested, particularly for new European hires from 1 January 2021. It is clear that any EU, EEA or Swiss national who is already employed in the U.K. on 31 December 2020, will not require a retrospective right to work check. While these individuals are nonetheless required to apply under the EU Settlement Scheme (“EUSS”) by June 30, 2021, employers cannot require them to demonstrate they have made the application.

For new hires from 1 January 2021, it is clear that any EU, EEA or Swiss citizen not resident in the U.K. will require sponsorship under the new immigration system prior to starting employment.

For new hires of any European nationals already residing in the U.K., while these individuals may have already applied under the EUSS (and are required to do so by 30 June 2021), employers cannot require them to show any status granted under the EUSS until after 30 June 2021.

The guidance is therefore very clear on the requirements for right to work checks on EU, EEA and Swiss new hires between 1 January 2021 and 30 June 2021. Employers can check the job applicant’s right to work as they do now, by viewing either the passport or national identity card, or conducting an online check.

Crucially, employers cannot discriminate and refuse to employ an EU, EEA or Swiss national on the basis they have not yet obtained a status under the EUSS until after 30 June 2021.

Further, employers can be assured they will have a full statutory defence against any illegal employment even from just the passport copies for this population. Retrospective checks are not required on existing employees.

Nonetheless, employers should still be encouraged to provide regular communications to their employees to remind them to apply under the EUSS by 30 June 2021. In fact, this approach is encouraged by the Home Office, who have provided an “Employer Toolkit” – https://www.gov.uk/government/collections/eu-settlement-scheme-employer-toolkit – to provide signposting to businesses to help support their European citizen employees to stay in the U.K.

While the employer will have followed all the right to work guidance to establish a statutory defence, should any employee not have made the application by 30 June 2021, the individuals in question nonetheless require the status to continue lawfully residing in the U.K. Apart from the right to work, holding status under the EUSS is also required for accessing the NHS, schooling, travelling in and out the U.K., banking and renting a property, for instance.

So, in summary…
• Before 30 June 2021, there is essentially no change to the right to work process for employers hiring EU, EEA and Swiss nationals. If the individual is resident in the U.K. a simple right to work check can be carried out using the passport.
• Signposting can be given to employees regarding how to apply under the EUSS, but evidence cannot be requested that this has been done or permission obtained.
• If the EU, EEA or Swiss national is not resident in the U.K., a formal application is required under the new immigration system.
• No retrospective checks are required on existing employees.
• After 30 June 2021, all EU, EEA and Swiss national new hires will be required to show their permission to work in the U.K. either by holding a status under the EUSS or by first making an application under the new system.

As a final consideration…

It remains to be seen if any retrospective checks on holding a status under the EUSS will be required after 30 June 2021, in particular for those individuals hired between 1 January and 30 June 2021. Further guidance is expected to be released by the Home Office as we approach the end of the ‘period of grace’ on 30 June 2021.

In the meantime, employers can be reassured that the requirements for right to work checks on European nationals from January 2021 are perhaps less onerous than may have been anticipated. Indeed, in effect, the right to work check process essentially remains unchanged until after 30 June 2021, notwithstanding the fact that new European hires who are not resident in the U.K. will require working permission under the new immigration system.

If you have any questions relating to this, or to any other employment issue, please don’t hesitate to call me.

Read more
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