FAQs and links Useful Links
(Updated 25/03/2020, 10:46)
We will be adding to this page frequently as the queries continue to come up.
I am an employer who employs zero hour contracted workers and have had to/will have to furlough them. Under the job retention scheme, what protection of earnings do they have from me? Is funding available for them?This is still unclear, due to there not being a published method of calculation as of yet. Today (24/03/2020), the chancellor of the exchequer was quoted stating that zero hour contracted workers would fall in the same bracket as any other PAYE worker. What is still to be decided is the period of earnings to work out the average on.
We assume that there will be many zero hour contracted workers whose earnings may well fall below the statutory sick pay figure of £94.25 (19/20. To rise to £95.85 20/21). You could suggest that they will be better off taking unpaid leave and applying for sick pay through the DWP.
The government may announce that the job retention scheme only applies to those who would be eligible for SSP through their employers. This would avoid some staff being paid less than £95.85 if they did nothing.
I am an employer. My weekly/monthly payroll is due to be finalised and paid later this week. What should I be paying my staff that I have had to furlough?
I'm afraid there is not a current answer for this. Some prudent advice may be to pay staff (that have been furloughed) with contracted hours 80% of their basic salary. Then re-assess this period when the government bring out further advice. For example, the 80% may be based on an average earnings period where the employee earned more than their basic salary through overtime.
Our guess on how the scheme will work is that they will use a specific earnings period. As above, the chancellor stated that zero hour contract workers 'maybe' calculated on their average hours, which should mean in turn that the same applies to salaried staff.
I am an employer, do my staff continue to accrue holiday entitlement while furloughed?
We are in consultation with our HR contact. This is an area where we are not able to advise on. If you have a Human Resources service or a legal team, then please get in touch with them.
It could be argued that it is 'good practice' for employees to continue accruing holiday entitlement. However, we would advise placing temporary restrictions on when holidays can be taken when business returns to normal, so that you can plan staffing issues better.