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10 Facts About Furlough Leave

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The Government’s Coronavirus Job Retention Scheme (CJRS) has been extended to the end of September 2021. However, from 1st July 2021, employers can only reclaim up to 70% of wages for hours not worked (up to the cap of £2,187.50 a month). Nevertheless, the employer must continue to pay at least 80% of the employee’s wages (up to the cap of £2,500 a month) for any furloughed hours. Therefore, from the start of next month employers will have to contribute 10% (up to the cap of £312.50 a month). It is optional whether an employer chooses to top up an employees’ wages above the 80%, but this cannot be reclaimed.

Did you know …

  1. There is no minimum period of furlough leave.
  2. Employees, directors and workers can be included in the Scheme.
  3. Decisions made by an employer as to who should be furloughed can amount to unlawful discrimination if the selection is based on any “protected characteristic” under the Equality Act 2010 (e.g. age, sex, race, religion, disability).
  4. Any reduction in pay whilst on furlough must be agreed with the employee, otherwise it amounts to a breach of contract.
  5. Holiday entitlement will continue to accrue for an employee during furlough leave.
  6. An employer can force an employee to use holiday entitlement whilst on furlough leave.
  7. Employers can carry out a redundancy consultation with employees whilst they are on furlough leave.
  8. Employees can be made redundant whilst on furlough leave, or at the end of furlough leave.
  9. If an employee receives a payment in lieu of their notice entitlement upon termination of their employment the CJRS cannot be used to help pay this.
  10. For the purpose of calculating an employee’s entitlement to various statutory payments, including redundancy pay, this must be with reference to their normal pay, not the pay received whilst on furlough leave.

For more detailed advice, whether you are an employee, worker or employer please consult with our employment specialist – Jennifer Carpenter, solicitor and managing partner.

 

The Impact Of School Closures On Working Parents

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Lockdown III has resulted in the further closure of schools in the country with effect from 5th January 2021. Schools remain open for children of parents/carers with a job or career deemed to be “critical” in the Government’s guidance; or for some children that are vulnerable; or, most recently added is the category for those students unable to learn from home due to a lack of IT resource. The impact of school closures is huge on working families, in particular working mothers.

What can you do if you cannot work because your child(ren) are not at school?

1. There is no right to request, or to receive, furlough leave. However, the Government has confirmed that the Coronavirus Job Retention Scheme (CJRS), that contributes to the pay for furloughed employees/workers, can be used for caring responsibilities. It is the employer’s decision though. If it is offered by the employer it can only be implemented with the employee/worker’s consent. The employer is not obliged to make up the pay to a full 100% and therefore it means a reduction in pay to 80%. The CJRS has now been extended until the end of April and can be used flexibly so the employee/worker does not have to be on furlough leave for all of their contracted hours.

2. There is a statutory right to Parental Leave – up to 18 weeks leave per child can be taken by some working parents before the child is 18 years old. However, this is unpaid leave.

3. Annual leave can be used but most employers have a limit on the amount of annual leave that can be taken consecutively and it is always subject to the employer’s approval.

4. A change in shift pattern or working arrangement – an employer cannot force you to work on a different day or time. However, if you have caring responsibilities for a child (and you have worked for at least 26 weeks for your employer) you can make a flexible working request to change your contractual hours of work. An employer can only refuse this request for prescribed reasons as set out in section 80G(1)(b) of the Employment Rights Act 1996:

• The burden of additional costs
• Detrimental effect of ability to meet customer demand
• Inability to reorganize work among existing staff
• Inability to recruit additional staff
• Detrimental impact on quality
• Detrimental impact on performance
• Insufficiency of work during the periods the employee proposes to work
• Planned structural changes

5. Termination of Employment – you can resign from your employment. Your employer can only dismiss you if it is for one of five permitted fair reasons as set out under the Employment Rights Act 1996 – incapability, misconduct, redundancy, illegality of some other substantial reason.

Questions have been raised in parliament this month suggesting that there should be a legal and enforceable right for parents to request paid, flexible furlough. This comes after a survey of 50,0000 women in the UK suggested that 71% of working mothers who asked to be furloughed for childcare reasons following the closure of schools this month had their requests refused. However, this change has not been implemented.

The above is a very brief summary of the employment law position arising as a result of school closures. Please seek our specific advice so that it is applicable to your own individual circumstances. Remote appointments by various means are available with our employment law specialist Jennifer Carpenter, solicitor and managing partner.

Please telephone the office on 01799 523441 or e-mail [email protected].

What Happens When The Furlough Scheme Ends?

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The Five Rs

The Coronavirus Job Retention Scheme (CJRS) was introduced in March by the Government to enable organisations to keep staff on payroll and not make them redundant but send them home. It served two purposes – ensuring people stayed at home at the height of the Covid-19 pandemic, whilst enabling people to keep their jobs. As it is fundamental to the employment relationship that the employer provides work and the employee undertakes work in order to avoid a breach of contact, the furlough period could only be put in place with the employee’s express agreement. “Furlough”, prior to March was not a term that had ever been used in relation to employment contracts/relationships.

Employers are now contributing to the scheme but with the Government still contributing 70%. In October employers will be contributing 20%. The Chancellor has made it clear there will be no further extensions to the scheme. It will end on 31st October.

So, what happens to the millions of people on furlough on 1st November:-

RETURN TO WORK – the ideal would be that the staff member returns to their job and full pay. There is no specified notice period that should be given to an employee that they are required to return, unless something specific was agreed at the start of the furlough leave.

REDUCTION IN HOURS/PAY – this can only happen if the staff member agrees to this. An employer cannot force a reduction in hours or pay. Some employees may be willing to agree to this to avoid losing their job.

REDUNDANCY – if the employer has become insolvent then there will be a redundancy situation. If the employer cannot afford to pay redundancy then the Government National Insurance Fund scheme may be able to assist employees. Employees will only be eligible for statutory redundancy pay if they have at least two years continuous employment. Redundancy pay should be calculated in accordance with the employee’s full pay, not any reduced pay whilst on furlough. If the employer no longer has a need, or has a reduced need for employees of a particular kind, this will fulfil one of the statutory definitions of redundancy. How the employer consults and selects those identified for redundancy will determine whether a dismissal for redundancy is fair in accordance with the Employment Rights Act 1996.

REMAIN AT HOME – the employer could discuss with staff the idea of working from home to assist with social distancing in the workplace. An employee cannot be forced to work from home if their contract of employment provides for a different place of work.

REFUSE TO RETURN – if an employee refuses to come back to work the employer will need to address the reason for the refusal and possibly address any concerns that mean the employee will not/cannot return, including if they are vulnerable and have worries about Covid-19 transmission.

If the employee is not invited back to work and/or is kept on reduced pay then this is likely to amount to breach of contract and potentially a constructive unfair dismissal.

Time is running out. If a genuine redundancy situation arises then the employer must still give notice that the employment is ending for this reason. The contract may dictate the notice period, but statutory minimum notice periods will apply in that one week’s notice for each complete year of service must be given, up to a maximum of 12 weeks.

If an organisation plans to make more than 20 staff redundant there must be a minimum consultation period before any notice of termination is given of at least 30 days.

It is going to be a difficult time for employees and employers so we are here to give the legal advice to guide you through it.

Contact Jennifer Carpenter, solicitor and partner with 20 plus years of providing employment law advice and representation to employees and employers.

Furlough Leave Update Information

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All employers and organisations please be aware that in order to qualify for the subsidy from the Government’s Coronavirus Job Retention Scheme all employees/workers furloughed must have been given written instruction that they cannot do any work for the organisation that has placed them on furlough, and have consented to this in writing. This is contained in the Treasury Guidance to HMRC dated 15th April 2020.

The scheme has very recently been extended until the end of June.

For all your furlough leave questions answered, whether you are employer or employee, please contact our employment specialist Jennifer Carpenter, Solicitor and Managing Partner.

Some FAQs About Furlough Answered

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Some FAQs about furlough, answered by employment law specialist, Jenny Carpenter, Solicitor.

Do you have to be employed to be placed on furlough leave?

No, the Coronavirus Job Retention Scheme applies to the self employed, contractors and zero hour workers.

Can furlough leave be used for those shielding at home from Covid-19 as they are in the vulnerable group of individuals?

Yes, the Scheme Guidance makes it clear that those that are shielding in line with public health guidance can be placed on furlough leave by their employer. However, this is only the case if the employee cannot work from home and would otherwise be made redundant.

Can a worker/employee with caring responsibilities be placed on furlough leave?

Yes, if for example an employee is unable to work because there is no child care provision (particularly relevant as schools are closed) then they can volunteer for furlough leave. However, an employer is not obliged to place an employee/worker on furlough.

Can apprentices be placed on furlough leave?

Yes, and they can continue with training during this time, but not work.

Can a furloughed worker/employee undertake voluntary work whilst on furlough leave?

Yes. But not for the organisation that has placed them on furlough leave.

Can paid work be done by a worker/employee on furlough leave?

This depends. Paid work cannot be done for the organisation that placed them on furlough. However, if the worker/employee’s contract of employment permits them to have more than one job then there is no reason why they cannot take up paid work elsewhere.

Can a Nanny be placed on furlough leave?

Yes, the Guidance makes it clear that those employed by individuals can be placed on furlough. However, they must be paid through PAYE payroll and have been on the payroll as at 28th February 2020.

Can a director of a company be placed on furlough leave?

Yes, provided the decision is made by the Board of Directors and documented. It does of course mean that the director cannot then do any work for or on behalf of the Company during the period of furlough. The director can though carry out his/her statutory obligations under the Company Act 2006.

Employment Law Terms Explained

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As a result of the Coronavirus pandemic we are experiencing unprecedented employment circumstances and lots of different terms are being used to describe a worker/employee’s situation:-

Laying off

The employer provides the employee with no work, nor pay for a undefined period, but retains them as an employee.

Short time working

The employer provides less work (normally less hours of work) for less pay but retains the employee.
An employer should only impose one of the above if the contract of employment makes full provision for this, otherwise the employee would have a claim for breach of contract.
In certain circumstances where an employee is put on short time working or lay off they become entitled to claim a statutory redundancy payment. This is only where the employee has at least two years continuous employment with the employer and the statutory scheme for claiming redundancy pay is followed.
To be able to claim the employee must have been laid off or kept on short-time working (or a combination of both) for at least four or more consecutive weeks; or a total of six weeks (of which no more than three are consecutive) in any period of 13 weeks.

Redundancy

A potentially fair reason to dismiss under the Employment Rights Act 1996, either due to:-

  1. A place of work closure
  2. A company/business closure
  3. There no longer being a need, or there is a reduced for employees of a particular kind.

It is worth noting, however that notice must still be given to the employee that the employment is to be terminated.

Furlough leave

With the worker/employee’s consent they agree to go on paid leave for a minimum period of three weeks whereby they do not undertake any work and are retained as an employee. The employer can utilise the Government Retention Scheme and recoup up to 80% of staff wage costs via HMRC. The employer is not obliged to pay 100% of pay during furlough leave. Forcing an employee to be furloughed would amount to breach of contract. Therefore, it can only be done with the employee’s express consent.
There is no right to request furlough leave, nor any right to request redundancy as an alternative.

For advice as an employee or employer our employment law specialist solicitor Jennifer Carpenter is available at [email protected].

Employment Law Changes – Are You Ready?

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From 6th April 2020 all new employees, but also workers/joiners to a company, will have the right to a written statement of terms on or before the first day of employment, whereas it is currently for employees only and within two months of employment starting. This change has been brought about by an amendment to the Employment Rights Act 1996 as a result of the introduction of The Employment Rights (Employment Particulars and Paid Annual Leave)(Amendment) Regulations 2018.

Do you know what needs to be included in a written statement of terms? It does not necessarily have to be a formal contract of employment but there is prescribed information that must be provided, much sooner than previously and now to workers as well as employees.

There is a right for employees and workers to bring Employment Tribunal claims if the organisation engaging them fails to do this.

The Government has said that the intention is to ensure that workers can access fair and decent work, that both employers and workers have clarity on the employment relationship, and that the enforcement system is fair and fit for purpose. Above all, the direction of travel is to protect vulnerable workers and improve workers’ understanding of their rights.

The best way to ensure compliance is to have a properly drafted contract of employment that is ready to pass to a worker or employee at the latest on the day they start work. If you ask us to prepare the contract we can include all the requirements and information that an employer is obliged to give. The new Regulations include additional information that must now be provided. For example, probationary period details and days of the week worked must be provided for those starting work after 6th April.

There is information that the Regulations state the employer can choose whether to put in the main written statement of terms (contract) or in “reasonably accessible document(s)” but the following information must be provided:-

  • Terms for absence due to incapacity and sickness and the position regarding sick pay.
  • The notice periods for termination.
  • Information relating to grievances and disciplinary.
  • Terms relating to pensions and pension schemes.

Even if there is not a legal requirement to contain certain information in the written statement of terms it may be advisable to have additional terms to protect your business, for example post termination restrictions.

Contact us to arrange an appointment with Jenny Carpenter, specialist employment solicitor and partner to discuss your requirements.

Discrimination Claims Against Employers.

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It is the Equality Act 2010 that establishes the ability to bring action for unlawful discrimination. It is only in relation to a “protected characteristic” that action can be brought. The reason for the unfavourable treatment/discrimination must be due to a “protected characteristic” for the individual to be afforded protection under the act. So what is a “protected characteristic”? The Act dictates that the following are:-

  • Age
  • Disability
  • Gender reassignment
  • Marriage and Civil partnership
  • Pregnancy and maternity
  • Race
  • Religion or belief
  • Sex
  • Sexual orientation

Each protected characteristic has a statutory definition under the Act and therefore must be looked at carefully before unlawful discrimination can be established. Interpreting the meaning of each protected characteristic gives rise to various case law.

A recent case heard by an Employment Tribunal on 10th September 2019 (Conisbee v Crossley Farms Ltd and others) held that vegetarianism was not a “belief” qualifying for protection under the Act. Mr Conisbee alleged that he had suffered discrimination on the ground of religion or belief, his belief being vegetarianism. The Employment Tribunal held that although his belief was genuinely held and was worthy of respect in democratic society it failed to meet the other legal hurdles for protection under the Act. In their judgement the Tribunal ruled that it did not have a similar status or cogency to religious beliefs.

This decision does not have to be followed by other Tribunals in the future but is an interesting approach to what amounts to a “belief” for the purpose of the Equality Act 2010.

Who is protected? Under the Act there is a wide range of potential claimants for discrimination claims. This includes the following:-

  • Employees
  • Job applicants
  • Contract Workers
  • Agency Workers
  • The police
  • Individuals in a business partnership

If you consider you have suffered unlawful discrimination then please seek our advice. Do not delay. There are strict time limits for bringing a claim to an Employment Tribunal, whereby claims must be brought within three months of the date the discrimination occurred.

Jennifer Carpenter
Employment Specialist solicitor

What Should You Be Paid Whilst On Holiday?

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We are currently in the midst of a very popular time to take annual leave from work, but the law regulating and dictating what someone should be paid whilst on holiday from work is far from clear.

The Working Time Regulations 1998 (“the Regulations”) state that all workers have the right to 5.6 weeks paid leave each year. This equates to 28 days for a full time worker, including all public and bank holidays of which there are 8 each year. However, some workers are entitled, possibly under a contract of employment, to annual leave in excess of the statutory minimum.

Under the Regulations workers are entitled to be paid during statutory annual leave at a rate of a week’s pay for each week of leave. The question then is what is a “week’s pay”? How it is calculated depends on a number of factors and in particular distinction is made between a worker with normal working hours and those with no normal working hours. However, recent cases in the European Court of Justice that have been applied in the Employment Appeal Tribunal have stated that a worker needs to receive their “normal remuneration” during periods of statutory annual leave. This means that the way in which we calculate a week’s pay under the Employment Rights Act 1996 in the UK is incompatible with The Working Time Directive.

Article 7 of the Working Time Directive states that workers must have the right to “paid annual leave” but dos not state how this should be calculated. In the case of Williams and others v British Airways Plc [2011] the European Court of Justice held that a worker is not just entitled to basic pay but any remuneration that is “intrinsically linked to the performance of the tasks which the worker is required to carry out under his contract of employment and in respect of which a monetary amount, included in the calculation of his total remuneration, is provided”. Also those that relate to the “personal and professional status” of the worker. This would include payments relating to a worker’s seniority, length of service and professional qualifications.

The idea is that you should not be worse off financially as a result of exercising your statutory right to take holiday. With this in mind contractual commission and bonuses should be taken into account when calculating a week’s pay for the purpose of holiday pay. Otherwise you could be deterred from taking time off work due to the financial disadvantage you would be in. This was confirmed in the case of Lock v British Gas Trading Ltd and others [2014].

So, if your pay packet is lighter because you have taken some holiday this month or last it is possible that your employer has not correctly calculated your holiday pay. You may have a claim for the difference in pay. If you wanted to consider pursuing a claim seek our advice quickly as there are strict time scales for bringing such claims.

Jennifer Carpenter

Employment law specialist solicitor

Do You Need To Watch Your Behaviour At The Work’s Christmas Do?

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Generally speaking in employment law terms if you attend a social event organized by your employer, with work colleagues this is considered an extension of the work place, even if it does not take place at your normal place of work. This means that the normal rules of conduct and behaviour apply. Those committing any misconduct, for example swearing, shouting, abusive language or violent or threatening violent behaviour can be subjected to disciplinary action as if it had occurred in the work place.

The Equality Act 2010 makes employers liable for acts of discrimination, harassment and victimization carried out by their employees in the course of employment, unless they can show that they took reasonable steps to prevent such acts.

Some examples of cases that have previously been brought are:

The Chief Constable of the Lincolnshire Police v Stubbs and other where a police officer complained of sexual harassment by colleagues in a pub outside working hours. The Employment Appeal Tribunal stated that social events away from the police station involving officers from work either immediately after work, or for an organized party fell within the remit of during the “course of employment” and as such the employer was responsible for the actions of the staff member carrying out the harassment. This is known as vicariously liable.

In the case of Bellman v Northampton Recruitment a drunk Managing Director caused serious injury to a sales manager when assaulting him at a Christmas party. The employer was vicariously liable for the assault.

Case law has established though that what happens after the official Christmas party, even if with work colleagues is not the employer’s concern.

As an employer it might be worth reminding staff that normal work rules apply at the party/event. Any grievance raised by a staff member about an occurrence at the office party should be treated seriously and no less seriously because it occurred outside normal working hours.

As an employee, whilst you may want to let your hair down, you should still be on your best behaviour to avoid any implications for your job. You should also ensure that you make it to work after the party. Employers can take disciplinary action for non-attendance, even if it is as a result of a work social event the night before. Employers should treat all employees in this situation the same though. An employer can only make a deduction from wages for arriving late to work if the contract of employment permits this.

 

For advice on all areas of employment law, for employers and employees contact Jennifer Carpenter our employment specialist solicitor.