COVID-19 Update 16th March 2020

Coronavirus Update – 16 March 2020

General

• In the Budget (11 March 2020) the Chancellor announced a package of measures to provide support for public services, individuals and businesses to ensure the impact of COVID-19 is minimised.
• A new Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will enable businesses with a turnover of no more than £41 million to apply for a loan of up to £1.2 million, with the government covering up to 80% of any losses with no fees. This will unlock up to £1 billion pounds to protect and support small businesses.
• For businesses with fewer than 250 employees, the cost of providing 14 days of statutory sick pay per employee will be refunded by the government in full. This will provide 2 million businesses with up to £2 billion to cover the costs of large-scale sick leave.
  • this refund will cover up to 2 weeks’ SSP per eligible employee who has been off work because of COVID-19
  • employers with fewer than 250 employees will be eligible – the size of an employer will be determined by the number of people they employed as of 28 February 2020
  • employers will be able to reclaim expenditure for any employee who has claimed SSP (according to the new eligibility criteria) as a result of COVID-19
  • employers should maintain records of staff absences and payments of SSP, but employees will not need to provide a GP fit note
  • eligible period for the scheme will commence the day after the regulations on the extension of Statutory Sick Pay to those staying at home comes into force
  • the government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible
• A dedicated helpline has been set up to help businesses and self-employed individuals in financial distress and with outstanding tax liabilities receive support with their tax affairs. Through this, businesses may be able to agree a bespoke Time to Pay arrangement. If you are concerned about being able to pay your tax due to COVID-19, call HMRC’s dedicated helpline on 0800 0159 559.
• There will be a £3,000 cash grant to 700,000 of our smallest businesses, delivered by Local Authorities, and worth a total of £2 billion.
• Finally, the government is temporarily increasing the business rates retail discount in England to 100% for 2020-21 for properties below £51,000 rateable value. Nearly half of all business properties will not pay a penny of business rates.
• In addition, the decisions announced by the Bank of England on 11 March 2020 mean that banks are in a better position to provide additional credit to smaller businesses, with the base rate now down to 0.25%.
• Employment allowance to increase by £1,000 allowing certain businesses who employ staff to reduce their National Insurance bill by £4,000.

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Employees

Self-isolation and sick pay

Employees and workers must receive any Statutory Sick Pay (SSP) due to them if they need to self-isolate because:

• they have coronavirus
• they have coronavirus symptoms, for example a high temperature or new continuous cough
• they’ve been told to self-isolate by a doctor or NHS 111

Employers might offer more than SSP – ‘contractual’ sick pay.

If an employee or worker cannot work, they should tell their employer:

• as soon as possible
• the reason
• how long they’re likely to be off for

The employer might need to be flexible if they require evidence from the employee or worker. For example, someone might not be able to provide a sick note (‘fit note’) if they’ve been told to self-isolate for more than 7 days.

If an employee is not sick but the employer tells them not to come to work

If an employee is not sick but their employer tells them not to come to work, they should get their usual pay.

If an employee needs time off work to look after someone

Employees are entitled to time off work to help someone who depends on them (a ‘dependant’) in an unexpected event or emergency. This would apply to situations to do with coronavirus. For example:

• if they have children they need to look after or arrange childcare for because their school has closed
• to help their child or another dependant if they’re sick, or need to go into isolation or hospital

There’s no statutory right to pay for this time off, but some employers might offer pay depending on the contract or workplace policy.

The amount of time off an employee takes to look after someone must be reasonable for the situation. For example, they might take 2 days off to start with, and if more time is needed, they can book holiday.

If an employee does not want to go to work

Some people might feel they do not want to go to work if they’re afraid of catching coronavirus.

An employer should listen to any concerns staff may have.

If there are genuine concerns, the employer must try to resolve them to protect the health and safety of their staff. For example, if possible, the employer could offer flexible working.

If an employee still does not want to go in, they may be able to arrange with their employer to take the time off as holiday or unpaid leave. The employer does not have to agree to this.

If an employee refuses to attend work, it could result in disciplinary action.

If the employer needs to close the workplace

An employer may want to plan in case they need to close the workplace temporarily. For example, making sure staff have a way to communicate with the employer and other people they work with.

Working from home

Where work can be done at home, the employer could:

• ask staff who have work laptops or mobile phones to take them home so they can carry on working
• arrange paperwork tasks that can be done at home for staff who do not work on computers

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Self-employed

• self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected. This is expected to change over the next few days.

For more information click HERE to visit the Gov website.

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