What will be the added cost to business of furloughing staff from 1 July 2021?
Similar to the position for claims between 1 August 2020 and 31 October 2020, for claims between 1 July 2021 and 30 September 2021 there will be a cost to businesses of furloughing staff, which will gradually increase until the scheme closes at the end of September as follows.
- From 1 July 2021 employers will be required to contribute 10% of wages, with the Government contributing 70%.
- From 1 August 2021, the employer contribution increases to 20% and the Government will contribute 60%.
- 30 September 2021: scheme closes.
Employees will continue to receive 80% of their current wages, up to £2,500 a month.
Related FAQs
If an employee is self-isolating (as a result of the pandemic) they may be entitled to SSP. Employers should not furlough employees in this category just because of their absence, but they can furlough if there are genuine business reasons for doing so and other eligibility requirements are met. In these cases the employees should no longer receive sick pay and they would be classified as furloughed.
The guidance has specified that those on long term sick leave or who are ‘shielding’ for 12 weeks in line with public health guidance can also be furloughed. But it is important that you clarify that they do fall in the category of extremely vulnerable (https://www.gov.uk/government/publications/guidance-on-shielding-and-protecting-extremely-vulnerable-persons-from-covid-19). It is up to employers to decide whether to furlough employees who are shielding or on long-term sick leave.
You can claim from the CJRS and also for the two week SSP rebate scheme (see below) for the same employee but not for the same period of time. Therefore if you have a furloughed employee who becomes ill and you subsequently move them to SSP you cannot claim the furlough rate of pay. If you keep the employee on the furloughed rate you can continue to claim this under CJRS.
Transparency is considered to be central to the philosophy of the COP. The guidance provides details on issues concerning transparency of proceedings and involvement/attendance of P. Whilst there will be some difficulties with ensuring that remote hearings are accessible to the public as an ‘open court’, provisions have been made for the continued presence of the press where the facilities can accommodate this.
An extension to the traditional business interruption insurance, “contingent business interruption insurance” often covers areas such as business interruption due to damage to property of a customer or suppliers. Nonetheless, proving loss can be problematic.
Claims for loss of use of the property may be possible as a result of forced business closure due to lockdown. Accordingly policies should be carefully reviewed to see if cover is available.
Many businesses that supply directly to consumers have been concerned to understand their legal position in relation to services that have been cancelled, or that they have been unable to perform, because of the Covid-19 pandemic, and in particular how to deal with deposits paid by consumers for such services. With some degree of restriction on the hospitality and tourism sectors likely to remain in place for some time, such questions will remain important for the foreseeable future.
The CLC has also prepared a template letter that firms may adopt and issue to their workforce regarding travel to work. This can be accessed at download document.
The CLC’s current advice to those carrying out works on site is to carry out your own risk assessment on each site and determine whether or not it is safe to continue to work in accordance with the Public Health England instructions and the CLC Site Operating Procedures. If it is not possible to work in accordance with the above they should not work.