What should payroll look out for if the Government’s Coronavirus Job Retention Scheme is used?
- It is important to have a clear paper trail for any agreed reduction in salary, and hence any reduction in the amount of contributions. However, the contribution rates (as opposed to the amounts) should be the same as normal, and hence all processes and software should function as per normal and, amongst other things, remain compliant with auto-enrolment employer duties.
- However, if the period of affected contributions does not overlap precisely with the period of reduced salary, for example because of different cut-off dates, there may well be instances of non-compliance with auto-enrolment employer duties at the beginning as well as at the end of the period covered by the Coronavirus Job Retention Scheme.
- Accordingly, where an employer takes advantage of the Coronavirus Job Retention Scheme, good communication with the persons responsible for pensions administration and detailed record-keeping are essential to prevent non-compliances in the short-term and confusion in the long term.
Related FAQs
Employees who are unable to work because they are shielding in line with public health guidance (or need to stay home with someone who is shielding) can be furloughed after 1 July 2020, as long as you have previously submitted a claim for them in relation to a furlough period of at least 3 consecutive weeks taking place any time between 1 March 2020 and 30 June.
This free Getting back to business webinar was held on Thursday 7th May.
On this video, employment partner Edward Nuttman and Graham Vials went through what a consultation exercise is and when you are required to hold one. They then took you step by step through the process, describing all you will need to do to ensure legal compliance whilst at the same time being sensitive to the emotional and motivational impact on your employees and managers.
We hope that all organisations will come out of lockdown successfully. However, the current economic crisis means that many organisations will face very difficult trading conditions.
Employment costs are one of, if not the, largest cost to your organisation. These costs will have an effect on your financial well-being – and many organisations are now considering how to reduce employment costs. That said, your workforce is also your most important asset and as we get back to business, you will need your workforce to run the organisation, produce your goods, deliver your services and deal with your customers.
As a result, many organisations are facing a very difficult situation – how to reduce or flex the cost of the workforce whilst also maintaining an ability to service customers. This difficulty is enhanced by the uncertainty of when the pandemic will be controlled and the threat of lockdowns end.
In making a Traffic Regulation Order (“TRO”) local authorities must follow the regulations, which include provisions relating to publicity requiring publishing the notice in a local newspaper, making the orders available for public inspection at a Council’s offices (which are likely to be closed to the public during this time) and where considered appropriate, posting the notices on the streets.
In recognition of the potential difficulties with complying with the publicity requirements, the Department for Transport has issued guidance as to how a Council may still publicise a TRO. The guidance recognises that not everyone may be able to access local newspapers online and suggests that people and organisations could be adequately informed by means of letter, leaflet drops, or local radio. In respect of making the relevant document available at the Council’s offices, the guidance suggests that notices could be placed online or outside offices with brief details and including a telephone number or email to use to request a hard copy of the documents.
While the guidance is helpful, it is important to note that it is guidance only and that the regulations have not been relaxed. Authorities will still need to demonstrate that they have satisfied all of the publicity arrangements in respect of the TRO.
In recognition of the problems that the current situation is causing, the UK IPO classed the 24th March and all subsequent days as “interrupted days” which means that deadlines that fall within this period will be extended until the UK IPO declares that the interrupted days have ceased. As lockdown has begun to be eased, the IPO has now reviewed its position and has confirmed that the “interrupted days” period will come to an end on the 29 July 2020. This means that Thursday 30 July 2020 will be the first normal day of operation, therefore all “interrupted days” deadlines will expire on this day. Similarly, if your deadline falls after the period of interruption ends, this deadline will not be automatically extended.
The IPO is conscious that many businesses may still be in challenging positions when the period of “interrupted days” end. They will endeavour to continue to provide flexibility and support to assist businesses with their applications. They hope to temporarily remove fees for requests for extensions of deadlines, and will give further updates when this fee exemption is in place.
The IPO continues to encourage applicants to meet original deadlines where they are able. As their offices are closed, the UK IPO is not currently processing paper forms (i.e. hard copy) and faxes. However, they are processing forms which have been submitted electronically, or via email and have made a new email address available for the submission of forms.
Intellectual Property Offices covering other territories have made their own announcements about the extension of deadlines. The EUIPO’s period of extension of deadlines came to an end on the 18th May. However, they have published a Guidance Note and accompanying webinar on the EUIPO website, detailing options for parties who may struggle to meet deadlines and remedies for those who may have missed deadlines.