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Do I have to continue to pay furloughed staff while furloughed? Can I wait until I receive the money from the government?

To qualify for a grant under the scheme you must pay your furloughed staff the wages you are claiming for. Failure to do so may result in a HMRC investigation and/or claims from furloughed staff for unlawful deductions from wages and possibly constructive dismissal claims.

Normal benefits including non-monetary benefits should continue during furlough unless the individual has agreed in writing to reduce or remove a benefit during this time.

Employers are expected to apply for one or more of the financial support schemes available to be able to continue to pay staff.

Related FAQs

Are permitted development rights now in existence for the creation of emergency medical facilities?

Yes. The Town and Country Planning (General Permitted Development) (Coronavirus) (England) (Amendment) Order 2020 came into force on 9 April 2020 giving permitted development rights for emergency development. The permitted development right is available to local authorities and health service bodies (as defined) on land owned, leased, occupied or maintained by it for the purposes of:

  • Preventing an emergency
  • Reducing, controlling or mitigating the effects of an emergency
  • Taking other action in connection with an emergency

It could cover, for example, the temporary change of use of buildings into a Nightingale Hospital or the establishment of a testing centre.

The permitted development right is not permitted in certain instances and is subject to a number of conditions including the notification of the local planning authority and the cessation of the use before 31 December 2020.

Further detail of the permitted development right is available at the link below.

http://www.legislation.gov.uk/uksi/2020/412/made

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.

What are the limitations of furloughing staff for publicly funded organisations?

The guidance from the Government concerning private sector organisations is very different from the guidance for public sector and organisations that receive public funding. The guidance states:

“The government expects that the scheme will not be used by many public sector organisations, as the majority of public sector employees are continuing to provide essential public services or contribute to the response to the coronavirus outbreak.

Where employers receive public funding for staff costs, and that funding is continuing, we expect employers to use that money to continue to pay staff in the usual fashion – and correspondingly not furlough them. This also applies to non-public sector employers who receive public funding for staff costs. Organisations who are receiving public funding specifically to provide services necessary to respond to Covid-19 are not expected to furlough staff.”

This guidance isn’t particularly clear but it appears that there is a recognition that there are different types of organisations which could be caught by this:

  1. Organisations who will be required to provide frontline services during the Covid-19 response. It is interpreted that NHS organisations such as NHS Trusts will fall firmly into this category. Employees of such organisations are expected not to be furloughed and to continue to work and be paid their normal salary in the usual way.
  2. Organisations who receive public funding to provide services to respond to the Covid-19 crisis. These organisations are not expected to furlough their staff. The type of organisation that would fit into this category are those that have been commissioned to developing breathing apparatus or testing kits to meet the needs of the healthcare sector during the peak of the pandemic.
  3. Organisations who receive public funds for staff costs to operate services. Employers are expected to continue to pay staff if the money to pay them is publicly funded. It is strongly inferred that this is irrespective of whether such staff have any work to perform. The type of organisation that is likely to fall into this category are GP practices, charities and private sector companies that have won contracts with the public sector.
What tips can you share for giving evidence during remote hearings?

During these unusual times, we are all having to adapt to what has become the ‘new normal’ and implement changes in how we carry out civil cases. If you are to give evidence in a remote hearing, whether this is by Microsoft Teams, Skype for Business or the Cloud Video Platform, we have pulled together a quick and useful guide below on what would be expected by the courts:

Before the hearing

  • Make sure that you have access to the video-conferencing software that will be needed for the hearing. We will tell our clients and their witnesses in advance which platform will be used. The courts have increasingly been using Skype for Business to conduct the hearings (but you may find other platforms being used)
  • Test that your camera and microphone are working and it is clear to see/hear you.
  • Dress appropriately, as if it was an in-person hearing, and use the same formalities.
  • Ensure that the background which is visible on your screen is appropriate and allows for your face to be clearly seen. A ‘blur background’ option may also be available on your settings which you may prefer.
  • Make sure that your mobile phone is on silent and you are in a location where there will be no/minimal distractions. You should be on your own in a room when giving evidence, however, as we have all experienced with working from home, sometimes interruptions such as children appearing cannot be avoided.
  • Join the call ahead of the allocated time, in order to allow for any small technical difficulties.

During the hearing

  • Have a copy of the hearing bundle to hand, so that you can follow the proceedings (this may be in hard copy or soft copy). You are not allowed any other notes or papers, whether hard copy or electronic, in front of you when giving evidence.
  • Unless addressing the Judge or you have been directly asked a question, keep your microphone muted.
  • When giving evidence, you must make sure both your camera and your microphone are switched on.
  • Remote hearings can be difficult and if you do not understand or you do not hear a question properly, then do ask for the question to be repeated/re-framed.
  • You should not move away from the screen without permission from the Judge. The Judge will allow time for breaks.
  • Address the judiciary and other advocates the same way as you would if you were in a physical courtroom.
  • It is permitted to drink water throughout the hearing, but mugs of tea and/or coffee are probably best avoided. It is also not permitted to eat food during the hearing.
  • Don’t panic if someone walks into the room or the dog starts barking because there is a knock at the door. Judges are only too aware about what might happen. Communication is key and if the interruption has interfered with your train of thought or the evidence you are giving then do say so.
  • Be aware that all evidence is recorded and that a transcript of all evidence can be obtained at a later date.
Do I still need to pay instalments of Community Infrastructure Levy (CIL) while the development site is closed?

Payments of the Community Infrastructure Levy (“CIL”) are tied to commencement of development, and where an instalment policy is in place, the instalments are usually tied to periods of time following commencement rather than build out rates. Therefore where a development has commenced, payments of CIL are likely to fall due in respect of a site notwithstanding that the site may have temporarily closed or build out rates have slowed.

New regulations now in force, provide some additional relief for those developers with an annual turnover of £45 million or less. Such relief will allow the Council to defer payments, disapply late interest charges, and refund late interest charges that have already been levied since 21 March 2020.

For those developers that cannot benefit from the new provisions, unless a Council has adopted an exceptional circumstances relief policy the regulations do not provide for any relief to be provided in instances where payment of CIL will create viability issues. Most Councils have not adopted such a policy, and in those circumstances the CIL liability will remain due in accordance with the payment schedule on the demand notice.

Councils are at liberty to amend their instalment policies in accordance with their own internal procedures, and the Government is encouraging Councils to explore this option to provide some relief to developers. However this will only assist in respect of any prospective instalments where the development commences after the new instalment policy has been adopted.

For those developers whose annual turnover exceeds £45 million, the Government seems to be taking the view that such developers can afford their CIL liabilities regardless of the current climate. The only concession the Government has proposed is to encourage Councils to make use of the existing discretion they have in respect of the imposition of surcharges for late payments.