Staff-related matters (including furlough scheme update)

There are two major updates for staff-related matters at this time.

The first relates to employment contracts. On 6 April this year, new regulations came into force with significant changes to the rules on written statements of employment. The first major change is that employees, and now also paid workers, have the right to a written statement of employment on day one.

The statement now needs to include more key information, including probation period and conditions, working pattern, training and other benefits, and paid leave and this is expected to be provided in a single document, with a few small exceptions. If you are looking to update your templates, then you can purchase Employment Contract Packs which have been produced in partnership with Anthony Collins Solicitors and comply with the changes in legislation here: Stewardship publications.

The second important change is to the Coronavirus Job Retention Scheme. This has now been running for over three months, with almost one million employers claiming for around 8.4 million workers. The current system of claiming 80% of wages with a cap of £2,500 plus related employers’ NI and pension contributions will end on 31 July. After this date, employers will be expected to contribute increasing amounts towards the cost of their furloughed employees’ pay. The scheme is expected to end on 31 October 2020.

From 1 July there will be significant changes in how the scheme works. It will only be open to employees who have previously been furloughed for a minimum of three weeks by 30 June. This means that the latest an employee can be furloughed for the first time is 10 June. Employees will be able to return to work part time, with the employer paying the hours that they work at their usual contracted rate. The usual hours that employees do NOT work can be claimed for under the furlough scheme. Employers will pay the NI and pension contributions in August, 10% towards the 80% furlough grant in September for hours not worked, increasing to 20% in October. Arrangements in working patterns will need to be confirmed in writing and all paperwork kept for the required retention period of five years.  

Further guidance is expected on 12 June and will be available here: Government Guidance on the COVID-19 Job Retention Scheme.

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Government Guidance on the COVID-19 Job Retention Scheme

Stewardship Employment Contract Packs