In Press & Media
CEO Comments – Re-opening

Re-opening Guidance
The wonderful folk at SureFoot have produced a very thorough guide to re-opening. Their guidance includes lots of free resources and can be found at their website here. We have also attached the main document at the foot of the email for you.

Nick’s View: – This is a very thorough document and may look quite daunting on first inspection but I really recommend you having a look and to start planning sooner rather than later.

 

Flexible furloughing
From 1st‌‌ July, you’ll can bring furloughed employees back to work part-time, with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August.

You can decide the hours and shift patterns that your employees work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.

Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing. When claiming the CJRS grant for furloughed hours, you will need to report and claim for a minimum period of a week. You can choose to make claims for longer periods such as on monthly or two weekly cycles if you prefer.

If your employees are unable to return to work, or you do not have work for them to do, they can remain on furlough and you can continue to claim the grant for their full hours under the existing rules.

Employer contributions
From August, the government grant provided through the job retention scheme will be slowly tapered.

  • June and July, the government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICs) and pension contributions for the hours the employee doesn’t work.
  • in August, the government will continue to pay 80% of wages up to a cap of £2,500 but employers will pay ER NICs and pension contributions.
  • September, the government will pay 70% of wages up to a cap of £2,187.50 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 10% of wages to make up 80% of the total up to a cap of £2,500.
  • October, the government will pay 60% of wages up to a cap of £1,875 for the hours the employee does not work – employers will pay ER NICs, pension contributions and 20% of wages to make up 80% of the total up to a cap of £2,500.
  • The cap on the furlough grant will be proportional to the hours not worked.

If you are a smaller employer, some or all of your employer NIC bills will be covered by the Employment Allowance, so you should not be significantly impacted by that part of the tapering of the government contribution.

Important dates
It’s important to note that the scheme will close to new entrants from 30‌‌ June. From this point onwards, you will only be able to furlough employees that you have furloughed for a full three-week period prior to 30‌‌ June.

This means that the final date that you can furlough an employee for the first time will be 10‌‌ June for the current three-week furlough period to be completed by 30‌‌ June. Employers will have until 31‌‌ July to make any claims in respect of the period to 30‌‌ June.

Nick’s View: – This move from the Chancellor was widely touted and came as little surprise. Whilst it is extremely welcome that the scheme is extended we will continue to seek further assistance for those most affected within the hospitality sector who are likely to remain adversely hit by the pandemic. The allowing of part-time work will be really welcomed by many who have been calling for this from day one.

 

Want to know more? Head over to www.licensees.org or to talk to me directly please drop me a line at nick@licensees.org – we deserve an Association that has independent businesses at its heart.