On the 23rd March 2020, Boris Johnson announced a national lockdown, meaning that you can travel to and from work but only where this absolutely cannot be done from home. This is suggesting if you do not come under the term of ‘Key Worker’ you would be required to stay at home.
Who does this Lockdown apply too?
This Lockdown applies to all non-essential businesses which includes:
- Food and Drink (Excluding takeaways and food delivery)
- Retail
- Hotels
- Non- residential institutions
- Assembly and leisure
- Outdoor recreation
Staying at Home
Whether in or out of work and affected by the economic impact of COVID-19, a wide range of welfare systems is still available, this includes Universal Credit.
Statutory Sick Pay
You would be able to get £95.25 per week Statutory Sick Pay (SSP) if you are unwell. This will be paid by the employer for up to 28 weeks.
If you are at home because of COVID-19 you would be able to claim for SSP. This includes people that care for other individuals in the same household.
For more information please visit: https://www.gov.uk/statutory-sick-pay
Statutory Sick Pay Start Date
SSP will be from day 1, rather than day 4 of your absence due to sickness or COVD-19. This applied from the 13th March 2020. You would need to speak to your employer if you are eligible for SSP.
What if You are Not Eligible for Statutory Sick Pay?
If you are not eligible for SSP and you have COVID -19 or are advised to stay at home, claiming Universal Credit or Employment Support Allowance. If you are eligible for Employment Support Allowance, sickness will be paid from day 1, instead of day 8.
Please see if eligible:
Universal Credit:
https://www.understandinguniversalcredit.gov.uk/coronavirus/
Employment Support Allowance:
https://www.gov.uk/guidance/new-style-employment-and-support-allowance
Job Retention Scheme
If employers are struggling to cover staff costs due to COVID-19, they may be eligible to access support to continue paying part of the employee’s wage and this will be able to avoid redundancies.
If your employer does access the Coronavirus Job Retention Scheme, you will be classed as a “furloughed worker”. This would mean that you are still on the payroll instead of being laid off.
While this scheme is implemented you should not undertake work and your employer will grant 80% of your wage for all employment costs. There is a cap of £2500 a month.
The Coronavirus Job Retention Scheme to run for at least 3 months from 1 March 2020, it will be extended if necessary.
If you are Self – Employed
A published proposed amendment has been made to the Coronavirus Bill, if approved, will give freelancers and self-employed people 80% of income of monthly earnings, averaged over the last three years; or £2917 per month. The lower amount would be issued.
Support for businesses through deferring VAT and Income Tax payments
Value added Tax (VAT) for businesses will be deferred for 3 months. This will apply from 20th March 2020 until the 30th June 2020 and all UK business are eligible. This is an automatic offer and no application is required for this.
If you are self-employed, Income tax payments due in 31st July 2020 will now be deferred to 31st January 2021. This is an automatic offer and no application is required for this. There will be no penalties or interest for late payments either in the deferral period.
Support for businesses who are paying sick pay to employees.
Business would be able to reclaim Statutory Sick Pay (SSP) paid for sickness due to the COVID-19. The eligibility criteria for the scheme is as follows:
- the refund will cover up to 2 weeks per eligible employee who is off work because of COVID -19
- employers that have less than 250 will be eligible however this will be determined by the amount of people that have been employed as of 28th February 2020
- employers can reclaim expenditure for any employee who claimed SSP as a result of COVID-19
- employers need to maintain records of staff absences and payments of SSP. If evidence is required, they can get a isolation note from NHS 111 and the NHS website.
If you will be eligible for the scheme if your business is UK based and your business is a small or medium- sized and employers fewer than 250 employees as of 28th February 2020.
If you are seeking legal advice or assistance from an employment law specialist, please contact our team today, or call our office on 0330 221 0684.
