Employment Matters to Consider Due to Coronavirus

Post Author:

Anne Melville

Date Posted:

October 27, 2020

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Coronavirus

End of the Job Retention Scheme –

The Job Retention Scheme (JRS) will come to an end on 31 October 2020.  Employers will therefore need to consider what next if their businesses are still affected by Coronavirus.

When the JRS ends and Furlough grants cease, employees will revert to their normal employment contract terms unless you have already consulted with them and agreed in writing alternative contract terms.

If you are considering any changes to your employees’ contracts or rights, we would recommend that you seek professional advice on this from HR experts.  This would include the following:

  • reducing hours
  • reducing pay rates
  • changing holidays

If you do not get agreement with the employees in writing regarding any changes to their contracts/working conditions, then you could risk leaving yourself open to employment claims.

Start of Job Support Scheme

The Job Support Scheme (JSS) starts on 1 November 2020 and will run for 6 months until 30 April 2021.

https://jsca.co.uk/job-support-scheme-update/

There are two different schemes – JSS Open for businesses that can operate but are facing decreased demand and JSS Closed for businesses legally required to close.

JSS Open

Employers must reach written agreements with their employee that they have been offered a temporary working agreement.

The agreement must be available for view by HMRC on request.

This temporary working agreement must cover at least 7 consecutive days.

Employers should discuss with their staff and make any changes to their employment contract by written agreement. When employers are making decisions, including deciding who they should offer reduced hours to, equality and discrimination laws will apply in the usual way.

Employers must maintain records relating to the terms of the temporary working agreements for each employee, and:

  • make sure that the agreement is consistent with employment, equality and discrimination laws
  • keep a written record of the agreement for 5 years
  • keep records of how many hours employees work and the number of usual hours they are not working

HMRC will publish further guidance on what to include in the written agreement by the end of October.

JSS Closed

Eligible employers will be able to claim the JSS Closed grant for employees:

  • whose primary workplace is at the premises that have been legally required to close as a direct result of coronavirus restrictions set by one or more of the four governments of the UK
  • that the employer has instructed to and who cease work for a minimum period of at least 7 consecutive calendar days

JSS Closed temporary working agreements

Employers should discuss with their staff and make any changes to their employment contract by written agreement. When employers are making decisions in relation to the process, including deciding who they should instruct to cease work, again equality and discrimination laws will apply in the usual way.

To be eligible for the grant, employers must reach written agreement with their employee that they have been instructed to and agree to stop working for a minimum of 7 consecutive calendar days.

The agreement must be available for view by HMRC on request.

Employers must maintain records relating to the terms of these arrangements for each employee. They must:

  • notify the employee of the agreement in writing
  • make sure that the agreement is consistent with employment, equality and discrimination laws
  • keep a written record of the agreement for 5 years

The employee must agree to the new arrangement

Again, this is not a complete list of employee eligibility requirements for JSS Closed and further guidance will be published by the end of October.

As always we always recommend you seek advice form an employment lawyer.

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Scott Graham on Unsplash

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