CORONAVIRUS UPDATE – 25 March 2020
Further to our release of information regarding ‘Furloughed Workers’ in yesterday’s update
(appended again below), I now have additional information for you to consider.
Although we do not yet know the mechanics of the 80% support payment scheme it does seem likely
that for logistical purposes, the government may choose to ask that you make the 80% payments,
report it at each pay period and then reclaim it through whatever system they are creating.
This is where present thinking is headed but please do not take this as concrete advise either from
SHR Group or anyone else, it is just something that HR and employment lawyers have been discussing
and believe may actually be the case. If that is so then we all need to be prepared, but if not then we
will be informed next month exactly how the scheme will be administered.
It’s clearly a case of ‘watch this space’, but please be aware of the following matters that you should
National Insurance and Income Tax
If businesses are asked to make direct payments of 80% to their employees, we may need to make
provision for deductions of PAYE, N.I. and pensions. So ahead of the announcement next month we
need to be sure our systems or payroll providers are geared up to do this efficiently and accurately.
National Minimum or Living Wage
If we pay our employees 80% of salary, we may need to consider whether or not they will then drop
below the required minimal pay levels.
It may be wise to prepare to make up the shortfall in those circumstances as it is likely to be for just a
small number of people however, government are considering this issue at present and it is fairly
certain that they will issue guidelines.
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