Advice from SHR International (People Management and Business Consultancy)

Thursday, March 26, 2020 10:08 AM | Farah Mendlesohn (Administrator)

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

be considering.

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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