Guidance on: Government’s Job Retention Scheme ‘Furlough’ & Statutory Sick Pay
NumberMill are currently collating advice from FCSA, Brabners, MarkelTax and the REC to support our agencies and contractors with regard to furloughing employees.
Unfortunately the actual ability to claim back from the Government is as yet unclear (the mechanism has not yet been built by HMRC).
This is important as it will significantly affect any business’s cash flow. Other questions that need to be answered are;
- How the average pay is calculated (relevant where there are different rates and hours being worked as in the temporary market).
- How ERS’NIC and Apprenticeship Levy is to be funded – Gov guidance on on-costs is unclear and contradictory, so has potential risk.
- The methodology for reimbursement and cash flow speed.
If you are considering furloughing your temp employees, we would recommend awaiting further information from the Government before you make any decisions.
The guidance regarding Umbrella and Furlough is also as yet unclear, but has the possibility to be a very useful and attractive tool to retain contractors and attract those contractors who are able to find work in the critical supply chain during Corona.
Statutory Sick Pay
In terms of Day-1 SSP; the emergency legislation for this is still going through parliament, and once it is passed it will be backdated to 13th March.
Given that the government expects all employers to pay SSP from Day 1 for all qualifying employees, it is recommended that you do so.
As you can tell, the situation is changing on a daily basis and we will be keeping you informed of all developments that we are aware of.
It is really useful for us to receive intelligence from the market on the impact of this to your business, therefore please let us know so that we can continue to lobby Government
We will keep you updated regularly where possible.