As the recent focus has shifted from survival to how the economy can begin to get back to work, you’re probably wondering what the coming months have in store for your business. As the furlough scheme begins to wind down many businesses are re-adjusting their priorities to meet a changed business environment and are thinking about their immediate and longer-term people plans. It’s been a very busy few months on the HR front (more busy than we’ve ever been!) and whilst we’re supporting a few businesses with redundancies and helping them to reduce their fixed costs, we’re also supporting many with recruiting and reshaping their business model, so that they are fit for the future which is fantastic to see.
New guidance has been made available to employers on a number of different matters (surprise surprise!) and I know at times it can the amount of information is overwhelming, so here is a roundup of the latest changes for you to be aware of. Planning ahead is essential, so let’s take a look at a few of the changes coming your way…
Changes to the Job Retention Scheme
The start of August has seen 2 main changes to the Coronavirus Job Retention Scheme:
- Changes to the level of the grant – for the first time since the furlough scheme began, from 1 August employers will need to start contributing to the cost of the scheme. Although the government will continue to pay 80 per cent of wages (up to a cap of £2,500) in August for the hours an employee is on furlough, employers will be required to pay employer National Insurance Contributions and make pension contributions for those hours.
- Furthermore, from September 2020, the government will begin to phase out the furlough scheme by decreasing payments by 10% and decreasing the maximum payment by £313. Employers will then be able to claim 70% of employees wages, capped up to £2,187.
- From October 2020, the government will pay 60% of wages capped up to £1,875, a further decrease of £312.
- We advise all employers to ensure that they have furlough agreements with employees and records are kept of all usual hours worked and hours claimed. If you need furlough agreements, please let us know.
Redundancy payments for furloughed employees
- The government has brought in a new law which ensures that if furloughed employees are made redundant while on furlough, they will receive a statutory redundancy payment based on their normal wages, rather than a reduced furlough rate. The law will also apply to ensure that normal wages are paid in respect of statutory notice payments.
Over/underpayment of furlough claims
- The government have released a short new guide if you’ve claimed too much or not enough from the Coronavirus Job Retention Scheme, this available on their website.
Changes in self-quarantine rules
- The government have recently announced that anyone returning from Spain, including the Balearics and Canaries and also France, must self-isolate on their return to the UK for 14 days. There have been a number of flare-ups of Covid-19 across the world in the past weeks and the government will likely impose further restrictions at short notice on holidaymakers.
- In light of this, it is advisable to update your holiday and sickness policies to ensure any staff travelling abroad are aware of the options available to them, as they would not automatically qualify for SSP payment if they are required to self isolate for 14 days. The government are advising employers to be reasonable wherever possible and we have been working this through with our clients on a case by case basis.
In a nutshell, the key options to cover the 14 days self-isolation period after a holiday are:
- If their job can be done from home, then they should do this and be paid as normal.
- If they cannot work from home then they could use holiday to cover the 14 day or take unpaid leave.
Job Retention Bonus
- The government announced this scheme will be available to employers to receive a one-off bonus of £1,000 for each furloughed employee who is continuously employed until 31 January 2021 (qualifying conditions apply). We will provide a further update on the Job Retention Bonus as and when additional detail is published in September. In the meantime, employers should ensure that their employee records are up-to-date and accurately reported through the RTI reporting system, and that any incorrect furlough claims have been notified to the HMRC.
Apprenticeships, traineeships and placements
- Businesses will be given £2,000 for each new apprentice they hire under the age of 25 and £1,500 for every apprentice over 25. More information is expected shortly.
Fully funded six-month job placements Kickstart Scheme
- Employers will be paid to create jobs for 16 to 24-year-olds at direct risk of long term unemployment, with an initial £2bn of funding committed. will cover 100% of the national minimum wage for 25 hours a week. More information is expected shortly.
New HR System Partnership
- From this week, Affinity HRM has become an accredited partner for Breathe HR Software. After months of testing and searching for a suitable HR software to support the SME’s we work with, we’ve finally found the one!
- We’ll be rolling out to many of our clients over the coming months. It’s a very simple HR system which helps businesses keep focussed on managing your people rather than you’re paperwork and more importantly it is extremely good value for money. Through our HR retained services, the system can cost you as little as £10 per month which is amazing for the functionality it provides, so it’s a win-win! We’re happy to offer a 14-day free trial if you’re interested in how it could work for your business. Please quote AFF08.
Niche Magazine Feature
- In this month’s Niche Magazine I share some of my insights and tips to help you think about how you might best lead your team during this period of change and navigate through a crisis and change in general. The full article can be found here: https://issuu.com/niche-magazine/docs/niche_magazine_issue_38/18
Free COVID & Beyond Webinars – every Tuesday at 12pm and 5pm.
- I’m excited to have teamed up with Phil Nassau (Business Coach) and Imran Sattar (AIMS Accountant) to support businesses through the changing business landscape, so if you have a burning question related to HR, accountancy or business planning and you need some help, then we would love for you to join us for a chat. You can register your free place through Eventbrite here: https://www.eventbrite.co.uk/e/free-30-minute-weekly-webinar-for-smes-tickets-114590336782
- We’d like to ensure our webinars continue to cover the issues most relevant to your business, so we would welcome your suggestions.
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