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How will normal salary be calculated for those with no normal working hours, such as zero hours workers?

For those with variable pay, if the employee has been employed for a full 12 months before the period claimed for you, can take the higher of:

  • The same month’s earnings in the previous year; or
  • Average monthly earnings from the 2019/20 tax year.

For those who have been employed for less than one year you can use the average of their monthly earnings since they began their employment until the date they were furloughed.

If they have been employed for less than a month, work out a pro rata for their earnings so far, and claim for 80%.

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Which charities will benefit from this funding and when - local charities?

£370 million will be available to support small and medium-sized charities who are at the heart of local communities and which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice. These monies will  be distributed by organisations including the National Lottery Community Fund for those in England. It is understood these monies will need to be applied for. The application system for the National Lottery Community Fund grant pot is expected to be operational within a period of weeks.

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What other factors may be considered?
  • Integration:
    • Is the individual held out as being employed by the business by having a company email address, uniform, how would they introduce themselves to customers?
  • Exclusivity:
    • Is the contractor restricted from working for other organisations without the consent of the end user client?
  • Length of engagement:
    • Is the contractor engaged to work on a specific project for a defined period? Or are they engaged for an indefinite period with no reference to a specific task or project?
  • Pay:
    • Are there regular fixed payments or is payment on completion of specific task or commission based? Is the contractor entitled to benefits or bonuses?
  • Facilities:
    • Does the contractor provide their own equipment and materials to provide the services?
  • Financial risk:
    • Is the contractor personally responsible for any loss arising from their work in performing the services? Will they have to rectify unsatisfactory work at their own time and expense? Will they have the opportunity to profit from the success of a project?
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What is the difference between individual and collective consultation?

Where it is envisaged that 20 or more employees will be dismissed at a relevant establishment within a 90 day period or less, then collective consultation is required (in addition to individual consultation) and the company must inform BEIS (using form HR1).

If there are less than 20 dismissals then you are only required to carry out individual consultation.

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Will HM Treasury continue to collect my apprenticeship levy payments?

HM Treasury have no current plans to pause the collection of apprenticeship levy payments from employers, therefore levy-paying employers must continue to make payments. There is also no plan to extend the 24 month period allowed to spend levy funds.

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What other financial support is there for businesses?

 Aside from the CBILS Scheme, the Government have, or are in the process of, implementing several different schemes to support businesses financially through the Covid-19 outbreak.

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