Is my business covered by insurance for notifiable diseases?

Under CBILS, for the purposes of calculating the applicant’s annual turnover, approved lenders have been aggregating turnover across the whole of the private equity investor’s portfolio meaning they failed to qualify for the scheme as they were deemed to exceed the £45 million threshold.

For private equity-backed businesses, the removal of the upper limit on annual turnover criteria for CLBILS seemingly avoids the issue of turnover aggregation across investment portfolios seen with the CBILS, potentially enabling more private equity sponsor portfolio companies to be able to access the CLBILS funding.

The changes will not apply to end users who are a small company. If you meet two out the following 3 conditions, you will meet the small company definition and are therefore exempt from the changes to IR35:

1. Annual turnover is no more than £10.2 million
2. Balance sheet total is no more than £5.1 million
3. No more than 50 employees

Companies will always be classified as small in their first financial year. Public companies will always be considered to be medium or large businesses and cannot fall under this exemption.

For a group company to be a small company its parent company must also meet the small company definition.

Ward Hadaway in conversation with Begbies Traynor webinar was recorded on Tuesday 16th June.

The business spotlight is firmly on Directors. Difficult, sometimes drastic decisions need to be made in unprecedented times. But the consequences of those decisions have long shadows, and Directors need to consider their future position through the lens of their creditors, shareholders, funders, HMRC and even the courts.

In conversation with leading business rescue and recovery specialists, Begbies Traynor, we focused on the proactive approach Directors can take in these exceptionally challenging times. We discussed very practical advice about the quickest routes to funding, how to bolster cash flow, protecting the Board, and ultimately how to be proactive and in control of the process if you think there is no way back for your business as a result of the pandemic.

It is important to note that the changes to insolvency law currently before parliament only deal with wrongful trading – all other duties remain the same. So Directors must still ensure they are acting in the best interests of the company, its shareholders and creditors. In this context, the webinar discussed funding options for keeping a business solvent, and how to manage the process if this is not possible.

Ward Hadaway partner Emma Digby talked to fellow partner and insolvency specialist Jane Garvin and Kris Wigfield and Matthew Cluer from Begbies Traynor about these issues.

This webinar is the first of our Yorkshire “In conversations with…” where we explore with other experts how businesses can get on the front foot in #gettingbacktobusiness.

You also need to consider other aspects of data protection.

Be proportionate – only gather and use Covid-19 data where you need to.

Keep data to a minimum – you shouldn’t gather more data than you need. You need to know someone has Covid-19 but you don’t need to know all their symptoms. Data minimisation also applies to who gets access to the data. It’s unlikely that a spreadsheet, accessible to everyone updating them on the health status of all employees, would be appropriate. Data should be shared on a need to know basis. You need to balance the privacy of individuals against your duty of care to be responsible with regards to the data of your employees, visitors, customers and suppliers.

Keep it up to date – make sure you update data. People’s health status will change and if you keep a record of this, you need to  make sure it is accurate and up to date (although this doesn’t mean you should batter individuals with constant requests for updates on health status. Again, be proportionate).

Identify individuals only when you need to – although you will need to know who has Covid-19, that doesn’t mean you need to tell everyone in the organisation. As soon as you can, you should remove personal data from any information you gather. For example, you might want to update employees on the health status of their fellow employees but you probably don’t need to name individuals and even if you feel it is necessary, you should keep the information you provide to a minimum. Removing personal identifiers in a document is also a good data security technique.

Keep the Covid-19 health data secure – Covid-19 data will be special category data and deemed high risk. This means that if you have a breach of this data you will need to notify it to the ICO. A breach could happen by someone losing a print-out of the names of Covid-19 employees, customers or visitors. It could also happen if you set access rights to lists of Covid-19 sufferers open to more people than need to know the information. The risk of ICO enforcement action increases with the potential harm the disclosure could cause. Although the ICO has indicated that it will be understanding about the impact of Covid-19 on normal operations, this doesn’t mean that they will not prosecute you if the breach is sufficiently serious.

Destroy the data once you don’t need it – Finally, of course, make sure that you delete data at the end of your needs. This might last longer than the pandemic, for example if you have an insurance claim or ongoing litigation. If you do need to keep it, consider whether or not you can delete some of the data to minimise what you hold.

The Home Office has not stated when it will end these temporary measures, albeit it has stated that it will provide a warning. Where employers have carried out checks using the temporary measures, the Home Office has confirmed that it will require employers to carry out retrospective checks on any of the following:

• Employees who started working for you when the temporary measures were in place
• Employees who required a follow up check during the temporary measures (for example because their previous leave was coming to an end).

It is not explicit from the guidance but these retrospective checks must require you to have in your possession the physical ID in its original form. When carrying out the retrospective check, employers must record this using the following wording “the individual’s contract commenced on [insert date]. The prescribed right to work check was undertaken on [insert date] due to Covid-19.”

These further checks must be made within eight weeks of the temporary measures ending, and employers must keep records of both checks undertaken. Where the employer discovers that the employee does not have the right to work during the retrospective check they should stop employing them.