Here at Clapham & Collinge LLP, we understand this has been an unprecedented and difficult time for both employers and employees to navigate through the furlough scheme. With a second wave of coronavirus infections now upon us, it is important now more than ever that employers and employees alike understand what is happening to the furlough scheme and what the new rules are under the Job Support Scheme.
With 8.9 million workers covered by the furlough scheme at its peak, the scheme has proved to be vital for the survival of many businesses in 2020. With that being said, many believe the furlough scheme should not be ending this month and that government support should be offered at the higher level for longer. It is easy to see where this unease stems from given the current economic situation in the UK. The latest figures show redundancies are at an 8-year high, with less jobs also on offer, so for those who are relying on the government to help protect their jobs, it's a very uncertain situation to be in.
In this article, one of our Employment Solicitors, Natalie Smith, will answer your questions regarding the furlough scheme and Job Support Scheme.
I don't think I've been paid correctly under the furlough scheme. Is there anything I can still do about it?
Any claims for unlawful deductions from wages (or not being paid the correct amount) would need to be issued in an Employment Tribunal 3 months less one day after the deduction has taken place. For breach of contract claims in the civil courts, the time limit will be longer.
If you believe you have not been paid correctly, it is recommended that you seek independent legal advice on the issue. Alternatively, you can contact free services like Early Conciliation through ACAS to help resolve the problem.
What is the Job Support Scheme and how does it differ from the furlough scheme?
The Job Support Scheme will replace the furlough scheme from 1st November 2020. The Job Support Scheme offers enhanced support to businesses forced to close under the government's new tier system, whilst still supporting businesses whose trade has been affected. The government contribution is less than that under the furlough scheme. The comparison figures are discussed in detail below.
If your business is forced to close, your employees can get up to 67% of their wages paid by the government up to a maximum of £2,083.33. To qualify, the employee has to have been on the payroll since 23rd September and be out of work for a minimum of 7 days.
If your business is not forced to close but is under restrictions, which have reduced trade, then there is still support available for your employees. If you offer your employees 20% of their usual working hours and you make a contribution of 4%, the government will pay 49% of the employee's wages. Overall, the employee will receive 73% of their wages.
In comparison under the furlough Scheme, the government would pay up to 60% of wages with the employer contributing the other 20%. The total the employee would receive was therefore 80%.
What support will I get if my workplace is forced to close?
As explained above, the Job Support Scheme will cover situations where your workplace is forced to close. In that case, you may be eligible to receive up to 67% of your wages paid by the Government.
I'm being made redundant rather than my employer making use of the Job Support Scheme. Is this fair?
In order to give a detailed response to this, we would need more specific details. However, if your employer or place of work is closing and does not plan to re-open, then it is likely redundancy would be a fair reason for dismissal. Your employer would still need to follow a fair process in making you redundant.
This situation would differ if your employer or place of work was only temporarily closing due to restrictions of the UK's tiered system and planned to reopen once the infection rate decreased.
These generic questions have been answered for general information purposes only and do not constitute legal advice. If you require specific legal advice on your rights, the Job Support Scheme or redundancy, please get in touch with our expert employment team today.
If you have any questions which you would like our Employment Team to answer in their next FAQ article, please submit them to marketing@clapham-collinge.co.uk.
For straightforward and practical employment law advice, contact us today to discuss your individual circumstances in further detail. Call 01603 693500 or email us using 'Make an enquiry' form on our website. Face-to-face meetings are available by appointment only at our Norwich, North Walsham and Sheringham offices.
*This article is accurate at the time of writing (30th October 2020). This article is provided for general information purposes only and does not constitute legal advice or other professional advice.
