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Reductions in salary

An obvious cost cutting measure is to reduce salaries, either temporarily or permanently. If you are to seek a reduction in salaries, this should be done fairly – either across the board or by selecting teams/individuals based on objective business reasons.

Note that this cannot be imposed without significant risk. Without agreement, this would need fair selection and consultation.

Related FAQs

Is the Land Registry functioning?

Yes. The Land Registry published a new service update on 14 May, here:

https://www.gov.uk/guidance/coronavirus-covid-19-impact-on-hm-land-registrys-service

Importantly, the Land Registry will process registrations where documents have been executed using the Mercury signing approach:

For land registration purposes, a signature page will need to be signed in pen and witnessed in person (not by a video call). The signature will then need to be captured, with a scanner or a camera, to produce a PDF, JPEG or other suitable copy of the signed signature page. Each party sends a single email to their conveyancer to which is attached the final agreed copy of the document and the copy of the signed signature page.

To summarise some further points:

  • Most information enquiries are experiencing minimal delays
  • Registrations of new titles, such as on sales of part or new leases, and applications to update existing titles, are experiencing more significant delays but can be expedited via the expedite service
  • Cancellation dates for replying to requisitions are extended until further notice
  • Access to free documents on the land registry portal has been extended to 90 days from completion of the transaction
  • Identity requirements have been relaxed. The Land Registry will now raise a requisition for identity documents, and not cancel applications
  • Requests for extensions to a notice or objection period will be granted if lawfully possible
  • Land charges searches can be submitted electronically with PDF documents
Can the apprentice take a break or pause in learning due to coronavirus?

A break or pause in learning can be initiated where the interruption to learning due to Covid-19 is greater than four weeks. This must be reported as a formal break in learning. In such circumstance the funding to the training provider will be suspended for the duration of the break. Previously, the rules only allowed an apprentice to initiate this break in learning but this has been expanded to give employers and training providers the right to initiate this. Training providers should continue with their monthly IRL submissions to the ESFA. During breaks in apprenticeships it is not necessary for the apprentice to comply with the minimum of 20% on the job training requirement but this will resume when the break ends.

Can a sponsor cut the salary or hours of a Tier 2 visa holder?

Yes but the sponsor must report this on the Sponsor Management System within 10 working days and must follow normal employment law principles.

If this results in the sponsored worker’s falling below the minimum required salary the usual position is that they cannot continued to be sponsored. However the government has implemented a concession for sponsors who have ceased trading or temporarily reduced trading which allows the salary to be reduced to 80% of the figure stated on the Certificate of Sponsorship or £2,500 per month, whichever is lower.

What is the Clinical Negligence Scheme for Coronavirus?

The Government has recently passed the Coronavirus Act 2020 in a response to the challenges posed by the pandemic, especially in relation to those facing the NHS during this time of crisis.  NHS Resolution worked closely with the Department for Health and Social Care to draft a clause within the Coronavirus Act providing indemnity for clinical negligence for any coronavirus related activity not currently covered by an existing arrangement.  In order to implement this clause, NHS Resolution has launched the Clinical Negligence Scheme for Coronavirus (“CNSC”).

It is intended that the CNSC will cover new contracts put in place for healthcare arrangements to respond to coronavirus, such as organisations supporting testing arrangements or Independent Contractors making agreements with NHS England and NHS Improvement to release capacity to the NHS.  Membership is not required for this scheme and the contracts entered into will automatically provide indemnity under the scheme.

The CNSC will not replace existing indemnity provisions made under the Clinical Negligence Scheme for Trusts (“CNST”) and it has been confirmed that the new Nightingale Hospitals will be covered by CNST rather than CNSC.  Similarly, NHS Resolution have confirmed that those doctors and nurses returning to practice from retirement, or those joining as students will be covered by the CNST or, where applicable the Clinical Negligence Scheme for General Practice (“CNSGP”).  The CNSC will not cover returning midwives to the profession, but the Royal College of Midwives have confirmed that they will extend all of the benefits of membership including Medical Malpractice Insurance to returning retired midwives.

For more information regarding this please click here.

What is the government guidance on making places of work as safe as possible to return to?

The government has produced a series of industry specific “Covid-19 Secure” guidelines, which employers should follow. These guidelines are designed to keep the risk of infection as low as possible, while allowing as many people as possible to resume their livelihoods.