Coronavirus (COVID-19) for employers and employees

The UK has significantly stepped up its response to Coronavirus. This has had a significant impact on the operations of employers and the lives of individual employees.

To help you navigate the challenges posed by Coronavirus, whether you are an employer or employee, we have put together this short guide.

Follow Government advice

The Government’s official advice has the potential to change quickly, so to ensure that you are acting according to the latest advice from the Government, it is a good idea to visit the official guidance pages on gov.uk regularly.

Advice for individuals

Guidance for employers and businesses 

Sick pay for individuals in self-isolation

With the increased range of circumstances in which the Government advises that people should self-isolate, there is a greater chance that you will have to deal with self-isolation.

Statutory Sick Pay (SSP)

The legal provisions for those who self-isolate in accordance with public health guidance on Coronavirus to be considered incapable of work, for the purpose of claiming statutory sick pay came into effect on 13 March 2020.

This definition is a person who is “isolating himself [or herself] from other people in such a manner as to prevent infection or contamination with Coronavirus disease, in accordance with guidance published by Public Health England, NHS National Services Scotland or Public Health Wales …. and [who] by reason of that isolation is unable to work”.

An employee will need a notice to self-isolate or a fit note from their GP or NHS 111 if they are following Public Health England advice to self-isolate.

The Government has also confirmed that SSP will payable from the first day that an employee is absent from work to self-isolate.

The Government has also committed to reimbursing businesses with less than 250 employees for the cost of SSP for the first 14 days of self-isolation.

Contractual Sick Pay

It may be necessary to pay additional sick pay in circumstances where this is provided for in a contract of employment, in the employee handbook, or even where it is usual practice to do so.

If you are unsure as to what to do in specific circumstances, please contact a member of our team.

Pay for individuals you have required to self-isolate

There may be circumstances in which you consider that an employee should self-isolate, even where this is not in accordance with Government advice. In these circumstances, you would have to continue to pay them their basic salary as usual.

Coronavirus Job Retention Scheme

The Chancellor has announced a scheme to reimburse up to 80 per cent of the cost of the wages of ‘furloughed workers’ up to £2,500 per employee per month.

This scheme will initially run for three months from 1 March 2020 and will be backdated. The Scheme will be administered by HMRC and all UK businesses and charities will be eligible.

HM Revenue & Customs (HMRC) has now published detailed guidance for operation of the Coronavirus Job Retention Scheme, which confirms that:

  • The scheme applies only to workers who were on the payroll on 28 February 2020;
  • Workers made redundant since 28 February 2020 can be included in the scheme, if you agree to take them back on; and
  • The scheme covers full-time and part-time employees, employees on agency contacts and employees on flexible or zero-hour contracts.

Read the guidance for employers on the HMRC website

Read the guidance for employees on the HMRC website

It may be beneficial to seek legal advice when communicating with employees when placing them on furlough. If you are placing a large workforce on furlough then it may be necessary to conduct a collective consultation.

Lay-offs owing to reduced work

It is possible that businesses, especially those in certain sectors, will see a reduced workload as a consequence of Coronavirus.

In these circumstances, and where allowed for in the contract of employment, employees can be laid off temporarily.

Employees who are laid off must be paid a guarantee payment of up to £29 a day, for five days, in a three-month period up to a maximum of £145.

After four weeks, employees may be able to request that they are made redundant.

Use of holiday

Another option that employers might wish to use is to require employees to take annual leave.

Where an employer wishes to do this, they must provide notice of at least twice the length of leave they require the employee to take. A requirement for an employee to take a week’s leave would require two weeks’ notice.

IR35

Please note that the Government has, as part of its Coronavirus response, delayed the introduction of the off-payroll working rules (IR35) until April 2021 and so the responsibility will remain with individual contractors to determine their own tax status.

Additional steps

  • Provide guidance to employees, setting out your approach to Coronavirus.
  • Assess whether any of your employees belong to vulnerable groups and who may need special provisions or employees whose presence is crucial to the functioning of your organisation.
  • Check the steps that can be taken feasibly to reduce the risk to employees If they remain within your business premises.

For further specific advice on dealing with Coronavirus in your workplace, please contact us today.

Meet the team

Trainee Solicitor - Litigation

Hannah Storey joined Carter Lemon Camerons LLP as a Trainee Solicitor in March 2020.

Prior to joining Carter Lemon Camerons LLP, she gained an LLB in Law at the University of Exeter and an LPC/LLM at the University of Law, Guildford.

Following that, she spent a year working as a commercial property paralegal at a large regional firm.

Away from the office, Hannah enjoys keeping fit and exploring London’s food and drink scene with friends.

020 7406 1000 - HannahStorey@cartercamerons.com
Partner - Commercial Litigation and Arbitration

The Legal 500: Recommended lawyer 2020Seamus Smyth is head of litigation and arbitration. His practice is primarily commercial with an emphasis on arbitration, financial services and work for South African and Italian clients.

Transactions

His reported cases include RH Green & Silley Weir v BR (limitation period against 3rd party), de Bry v Fitzgerald (security for costs), Hartt v Newspaper Publishing (libel concerning a work by Michelangelo), Pearson v Sanders Witherspoon (valuation of loss of chance), Siebe Gorman v Pneupac (status of consent orders), Senate Electrical v NTL (liability of an employee for acquisition warranties) and Bendell v Smith & Others (a successful recovery action by a lender on a shared appreciation mortgage equity release – the only such case to go to trial).

Recently involved in enforcement of foreign arbitration awards, claims arising from the banking upheavals since 2007, a successful claim against a high street bank resulting from a banking error and a successful claim against estate administrators and their solicitors for wasting the estate funds on irresponsible litigation.

More…

Educated (BA, LLB, Wits) and first qualified as an attorney in South Africa, he requalified in England, took an LLM at UCL and a Diploma in International Arbitration at QM, and became an FCIArb. He is chairman of the British South African Law Association (for the second time), chairman of Michaelhouse UK Trust, a trustee of Global Leadership Foundation (UK), a former President of the London Solicitors Litigation Association and Trustee and President of Town Malling Cricket Club (established in 1827!).  He was until 2012 a Visiting Senior Lecturer in International Commercial Arbitration at London Metropolitan University.  When work and domesticity permit he plays some cricket and more golf (but – which is immediately obvious – not nearly enough).

020 7406 1000 - SeamusSmyth@cartercamerons.com

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