Coronavirus (COVID-19): advice for employers and employees if the workplace needs to close temporarily
All non-essential premises must now close. This includes cafes, pubs restaurants, leisure centres, cinemas, theatres, Gyms, electronics and clothing shops.
This will be a difficult time for both employers and staff, so its a good idea to make sure that staff have a way to communicate with their employers and the other people they work with.
Advice from ACAS - 26.03.2020
Government Financial Support
The government is providing financial support for employers affected by coronavirus disruption. The details have yet to be announced, though as soon as they are, we will be post updated information on this website.
Furloughed Workers
The government will be introducing measures called the 'Coronavirus Job Retention Scheme'.
This means that employers can access financial support to continue paying wages, for employees who are temporarily sent home because there is either no work or because the work place has had to close and or they are unable to work at home.
These staff are called 'Furloughed' workers.
To access the scheme, employers will need to designate relevant staff as furloughed workers. the employer needs to get agreement from the worker to do this, unless it is covered by a clause in the employment contract.
The employer can decide who to designate as a furloughed worker. If an employee disagrees with their employer's decision they will need to talk to their employer and try to come to an agreement.
Any furlough agreements should be in writing. It's a good idea to include:
- the date furlough starts
- when it will be reviewed
- how to keep in contact during furlough
A worker will stay employed while they are furloughed, but they must not work.
HMRC will reimburse 80% of furloughed worker's wage cost to the employer, up to a maximum of £2,500 per month.
Employers will be able to make a claim for the money one HMRC's system is available.
It will be up to employers whether they pay the remaining 20% of the wages. They do no have to pay it.
If employers need short term cash flow support, they may be eligible for a 'Coronavirus Business Interruption Loan'
Lay-offs and short term working
In some situations, an employer might need to close down their business for a short time, or ask staff to reduce their contracted hours.
If the employer thinks that will need to do this, it is important to talk with staff as early as possible and throughout the closure.
Unless it says in the contract or is agreed otherwise, they still need to pay their employees for this time.
Employees who are laid off and are not entitled to their usual pay might be entitled to. 'statutory guarantee payment' of up to £29 a day from their employer.
This is limited to a maximum of 5 days in any period of 3 months. On days when a guarantee payment is not payable, employees might be able to claim Jobseeker's Allowance from Jobcentre plus.
Using holiday entitlement for a temporary workplace closure
An employer could, for example, shut for a week and tell everyone to use their holiday entitlement.
If the employer decides to do this, they must tell staff at least twice as many days before as the amount of days they need people to take. For example, if they want to close for 5 days, they should tell everyone at least 10 days before.
This could affect holiday that staff have already booked or planned.
So Employers should:
- explain why they need to close
- try and resolve anyone's worries about how it will affect their holiday entitlement or plans
Previously booked holidays
If an employee no longer wants to take time off they had previously booked, for example because their holiday has been cancelled, their employer may still tell them to take the time off.
If the employee wants to change when they take this time off, they will need to get agreement from their employer.