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Scam Alert – Emails referencing ‘Government Coronavirus Grants’ – 26 March 2020

Scam Alert – Emails referencing ‘Government Coronavirus Grants’ – 26 March 2020 We are warning businesses in Norfolk to be alert for emails referencing ‘Government Coronavirus Grants’ after receiving reports of examples circulating containing links to ‘check your eligibility’. Businesses are reminded that genuine advice and information can be obtained from the Business Support section of the Gov.uk website. If you become aware of any attempts at this type of scam it can be reported to Action Fraud on 0300 123 2040. Sign up for our business scam alerts at: https://www.norfolk.gov.uk/business/trading-standards/scams

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Ultimate Furlough FAQs

The legal landscape in relation to employment law is changing on an almost daily basis with new schemes being invented rapidly by the government to deal with the coronavirus crisis.

With such changes being made, there has been a lot of confusion, so we have put together a list of the most frequently asked questions our employment team is receiving about furlough in the hope that this will help answer some of your questions.

This is based on our understanding of the Government’s guidance to date, as of 27 March 2020. This is an ever-changing landscape and if the position changes further we will update you.

The employment guidance for business portal

In addition to the Q&A’s, we are pleased to announce that the Ashtons Legal Online HR Portal, which contains all manner of HR documents such as policies, contracts, invitations to disciplinary hearings, amongst other things, now also contains a Furlough Leave Agreement.

All of these materials will be updated as the COVID-19 crisis continues and the government issues further guidance, schemes and updates.

If you would like unlimited one-year access to this portal, we are charging £125 plus VAT. Please get in touch at COVIDEmpLaw@ashtonslegal.co.uk or call 01473 261394.

Your questions answered

The legal infrastructure around furlough is changing on a daily basis. The content of these answers have been sourced from the government’s update given on 26 March 2020 and may continue to change. Please contact a member of the team for bespoke legal advice.

1. What is furlough leave?

Furlough leave is a type of paid leave which the government announced on 20 March 2020 to help businesses retain their staff during the coronavirus crisis. It is a scheme where the business can opt to send their staff home and whilst they are not working, agree with staff that they will be paid 80% of their gross salary.

The business must furlough staff for a minimum of three weeks. The 80% (or £2,500 cap) is paid by businesses and then will be refunded by HMRC once their portal goes live, which is expected to be by the end of April.

2. When does the scheme run until?

The scheme is to be backdated to 1 March 2020, for any staff already on lay off or made redundant as a result of the crisis. The scheme is currently intended to last until 31 May 2020.

3. Who is entitled to furlough?

Full-time employees, part-time employees, employees on agency contracts and employees on flexible or zero-hour contracts, that were on the payroll as of 28 February 2020. For the purposes of this note “employee” covers all these individuals.

4. What can individuals do whilst furloughed?

Individuals cannot perform any work for the organisation that has furloughed them. They can, however, perform training or voluntary work for the organisation, so long as it does not provide services or generate revenue for the organisation.

Individuals can continue to work other jobs (as each organisation has its own responsibility to furlough if necessary) and can volunteer for other organisations.

5. What is the 80% (or £2,500 cap) comprised of?

As at 26 March 2020 the 80% will be based on the employee’s regular salary plus their associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on the subsidised wage. The government has confirmed that fees, commission and bonuses should not be included.

The calculation is based on an employee’s actual monthly wage, before tax. If the employee has variable earnings then:

  • for those employed for 12 months prior to the claim – the claim is for the higher of either the same month’s earnings last year, or the average monthly earnings for the 2019/20 tax year
  • for those employed for less than 12 months – the claim is an average of monthly earnings of their period of work.

Employees are only entitled to National Minimum or Living Wage if they are working. If the 80% will drop them below that threshold you can pay the lower rate if they are not working. However, if they are required to complete any training (including online training) during this period they will have to be paid NMW / NLW even if that includes the employer topping up. The current rates and rates applicable from 6 April 2020 are here.

The employer and employee can agree to the reduced wage of 80% / £2,500, or the employer can agree to top up the salary to the full rate.

6. What about tax?

All employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment pension contributions on behalf of furloughed employees, but the grant claimed from HMRC can include this.

Wages of furloughed employees will be subject to income tax and National Insurance as usual (on the reduced rate). Employees will also pay automatic enrolment contributions on qualifying earnings unless they have chosen to opt-out.

7. When will my business be reimbursed for the wages paid during furlough?

HMRC hopes to have their online portal available by the end of April. It is not clear what their response times will be but given the present situation with COVID-19 it could take a while after the online portal opens for payments to be made.

8. What if someone is working their notice period right now, can I furlough them?

An employee who is working their notice period is still an employee, therefore, they can be furloughed along with the rest of the staff.

9. Can I rotate staff on furlough, for example, one week normal working, one week furlough?

Employees must be furloughed for a minimum of a 3 week period. There does not appear to be anything in the guidance that suggests they could not be rotated after that minimum period.

10. What about staff on maternity leave, sick leave etc?

Staff currently on sick leave and in receipt of sick pay should remain on sick leave until the end of that period, and can then be furloughed if agreed.

Staff on maternity leave, adoption leave, shared parental leave or paternity leave the usual rules for statutory payments apply.

11. How should I deal with someone on maternity or paternity leave who now wishes to return to my business to claim 80% (or £2,500) furlough pay?

Women on maternity leave must take the minimum maternity leave period off work (2 or 4 weeks as relevant) following the birth of their child. Following this if they wish to return to work they can do so in line with the usual notice periods.

12. Can I make staff redundant whilst they are on furlough leave?

The usual processes and procedures regarding redundancy remain in place. Therefore, a redundancy process can run alongside furlough leave.

The government has confirmed that furlough leave will only be available until 1 June and at that point your business must make a decision as to whether you bring back furloughed employees, implement another form of leave that you may have the contractual right to engage (e.g. unpaid lay off), or make them redundant.

If you are making 20+ staff redundant please take legal advice on collective consultation requirements.

Further information

For specific advice for your business, please get in touch with our specialist Employment Law team through this website or by calling 0330 404 0778.

Our partners at Ashtons HR Consulting are also on hand to assist you.

This information is correct at 3.30pm on 27 March 2020.

TaxAssist Accountants ramps up support and creates Coronavirus Hub

TaxAssist Accountants has rolled out a series of new initiatives to its network and created a dedicated Coronavirus Hub on its client website containing the latest support available for businesses affected by the pandemic. 

In a week of unprecedented turmoil and change caused by the global COVID-19 outbreak, staff at the TaxAssist Accountants Support Centre pulled out all the stops to ensure its network of accountants and their 76,000 clients are kept up to date with the very latest developments.

Karl Sandall, Group Chief Executive, said: “I cannot praise the team highly enough for the work that has been put in over the last week. From the technical team who have digested and created content for the hub, to the business development team who worked tirelessly to communicate to clients on behalf of franchisees, centrally sending around 250,000 emails in total.

“We have ensured the 60 members of staff at the Support Centre, who are all now working from home, have access to all the equipment they need to maintain our usual high levels of service and support to our network of accountants. They can then in turn, confidently advise and guide their clients with the very latest information to help them and their business. We also have assurance from all major key partners that they can also work remotely and maintain services.

“All franchisees continue to have access to Employmentor, a service that provides guidance and help with all employment related law issues, which is provided free of charge by us.”

The TaxAssist Coronavirus Hub will be continually updated, and the Support Centre team has been delivering the following for the network:

  • Video tutorials and guides for franchisees on how to have client meetings using video technology to maintain service to new and existing clients.
  • Video messaging from the Chief Executive and other Directors to provide guidance and support.
  • Advice and tips on how to network on the online networking communities.
  • Daily social media content covering further announcements from the Government.
  • A dedicated section within the Franchisee Support Site to collate and access all COVID-19 related content.
  • Daily COVID-19 update bulletin emailed to franchisees issued from the Support Centre, which contains a detailed summary of announcements from the Government, practice advice and support, client communications, new marketing materials and using technology.
  • Live webinars delivered to franchisees outlining the latest changes and practical guidance around planning points.
  • Advice on how to support clients with short-term cashflow planning and the tools we have available to assist with this.
  • SMS texting to communicate with prospects and clients to keep them informed of working arrangements.

To view the TaxAssist Accountants Coronavirus hub click here.

If you are interested in joining the TaxAssist Accountants network, we intend to hold Discovery Days via video over the coming weeks. If you’d like to book onto a Discovery Day, we will require your CV and a completed application form which can be found on the website www.taxassistfranchise.co.uk

What are my rights if I take “Emergency Volunteer Leave” in order to help the NHS?

On 24 March 2020, the NHS announced that they were “rallying the troops” to encourage emergency volunteers to help the NHS fight the novel coronavirus.

Within 24 hours of their sign-up going live, they had over 400,000 emergency volunteers pledge to assist the NHS for two, three or four weeks. Such enthusiasm is promising to see in times like these and the government introduced The Coronavirus Act 2020 yesterday in order to navigate how situations like “emergency volunteer leave” should be treated.

What is emergency volunteer leave?

The Coronavirus Act 2020 passes legislation in place for the next 2 years. It enables emergency volunteers in health or social care to take unpaid time off work to assist the NHS. Volunteers who are currently employed elsewhere will provide their employer with a certificate which they will receive from the NHS (or another appropriate public body as set out in the Act), confirming that they will be an emergency volunteer for X amount of time.

The individual will be able to take the leave as certified if s/he provides the employer with the certificate and three working days’ notice. The period of leave will be 2, 3 or 4 weeks’ long and specified in the certificate. The initial volunteering period is over 16 weeks.

The employer cannot refuse the emergency volunteer’s request, however, they do not have to continue paying the employee whilst they are gone.

What if my employer refuses my emergency volunteer request?

Employers are not allowed to:

  • refuse the emergency volunteer’s request
  • treat an employee differently for choosing to take the leave or subject them to a detriment
  • dismiss an employee because they became an emergency volunteer. If they do, this will automatically be unfair dismissal and the employee can make a claim against their employer.

What happens when I come back?

Once you have returned from emergency volunteer leave then you will be entitled:

  • to return to your role on no less favourable terms than when you left
  • to the benefit of all the terms and conditions of your employment contract
  • to claim for any loss of earnings, travel and subsistence expenses from the Secretary of State.

The Secretary of State has yet to provide detail as to how these claims will be made or when they will be paid.

Further information

For specific advice for your business, please get in touch with our specialist Employment Law team through this website or by calling 0330 404 0778.

Our partners at Ashtons HR Consulting are also available to assist you.

This information is correct at 4.00pm on 26 March 2020.

A message from R13’s Directors & team

Well these are unparalleled times never seen or experienced before. We are seeing clients mobilizing working from home who had never anticipated they would have the need to do so.

We have seen clients with businesses freezes and conversely clients who have boomed. We have a government hell bent on supporting business and the economy, but uncertainty still around what that looks and feels like.

And as a result of that many of our clients have turned off the tap in relation to their recruitment activities. The fact that what we are experiencing is brand new means no one knows recovery rates, no one knows when the air will be clear and normality will return…? And we get that, 100%. But that doesn’t mean we will stop being there for you.

Doesn’t mean we will stop chatting to you. Doesn’t mean we will stop offering you our advise, both on things recruitment related, and indeed not. The core thing is for everyone to support each other and for us all to do our bit for each other.

The thing that we can say, from what we have experienced over the past couple of weeks is that our clients who are continuing their recruitment efforts are benefitting from really great candidates who want to be considered.

The market is still buoyant. People are still open-minded to making a move, even more so where the company can showcase their capability to support and offer a certain level of structure in these uncertain times. Likewise, they are understanding of start dates which may not be in the immediate future. For the right move, they are open to wait.

We are seeing job seekers entering the market, through no fault of their own. Job seekers with excellent skills and experience. Job seekers who under “usual circumstances”, you may not ordinarily see within the marketplace. If your business is able to, this could be a fantastic time to secure super people with great skills to join you. Or to meet them, create a dialogue and then keep in touch for when things move forwards.

We’ve been able to support businesses with new technology and guidance in relation to conducting interviews remotely. We’ve supported businesses who are recognizing opportunities within the current climate.

We’re offering specialized payment terms for clients to ensure we can support their cash flow, which is going to be so key and integral to all businesses right now. We are and will continue to do everything we can to help you.

Our brilliant team are working remotely, as are Ruth and I and we are on hand to answer any of your questions and continue to support you in every way possible. So please, do not be shy in reaching out. We are here for you.

Vital manufacturing in a time of crisis

The current coronavirus pandemic has truly turned the world on its head with worrying implications for individuals and businesses alike.

One shining light in all of the gloom is the ability of some businesses to adapt.  We have seen our local pubs and restaurants, seemingly doomed following the Prime Minister’s address on the 20th March, now setting up as take away and ready meal suppliers. Brewers across the country are turning their production lines over to the production of hand sanitiser, possibly the new liquid gold.

Other manufacturers have got in on the act looking at ways they can turn their production lines to new products.  Even a small business in Bury St Edmunds, normally making replica model buildings for model train enthusiasts is turning its hand to PPE equipment for our under pressure NHS.  On a larger scale, car and other manufacturers are being asked to make safety equipment, ventilators and new hospital beds.

Turning production to new product lines is not immediately straightforward however.  Businesses will have major practical and regulatory issues to overcome, but the desire, demand and skills are there and it is inspiring to see the sector rise to the challenge to meet the new “war effort”.

There are of course many existing product lines out there helping the international effort against the virus.  Some manufacturers are producing working on new, stripped down products which can be fabricated quickly and in volume.  All of these products can be licensed to other manufacturers, both in and outside of the UK spreading the load and reducing bottlenecks in the supply chain. 

These arrangements do require careful documentation though. Intellectual property rights and confidentiality need to be protected and it is vital that the rights and obligations of all the parties are clearly defined along with the methods of remuneration, most likely to be a commission. 

Whilst our healthcare professionals and scientists spearhead the effort to beat the virus, our manufacturers have a key role to give them the tools they need to keep us and themselves safe, so hats off to them.

Geoff Hazlewood, Partner

This information is correct at 2.30pm on 26 March 2020.

Divorce and the Coronavirus Effect

We are seeing enforced or elected isolation with one’s spouse having a negative effect on the relationship of some married couples. Evidence from China suggests that divorce rates have risen significantly as a direct result of couples spending much more time in each other’s company than otherwise would have been the case.

Undoubtedly, couples can plan to use this new found time together constructively but where there are already significant fractures in the relationship, the added pressure of constant time together might well prove the tipping point which pushes the marriage over the edge.

Police sources have confirmed that they anticipate an increase in domestic violence whilst this pandemic persists which will result in added pressure on the Courts, Women’s Aid and other organisations whose advice and assistance is sought. It is important that whatever the circumstances anyone who experiences any form of domestic violence reports these issues immediately to the Police, seeks legal advice and obtains emotional and practical support. For many it will be the final nail in the marital coffin. So what should you do if you sense that the marriage is now sliding into an abyss?

Those affected need honest and no nonsense advice from an experienced lawyer who can help them chart a course through this difficult period and advise them on any immediate and urgent steps that need to be taken in order to safeguard themselves or their assets. They have to have access to initial free legal advice in order that they can be helped to understand the options that they have, explore the assistance that might be available, understand their rights and decide what form of action best suits their circumstances.

Baroness Shackleton and other divorce experts have, in the light of the pandemic, said that they anticipate increasing numbers of divorces in this country and the need to obtain appropriate and experienced advice will rise.

It is important that any advice sought comes from a source that is very experienced in dealing with all the complexities that divorce situations produce – from lawyers that have many years of experience in helping people through the stress and difficulties of divorce and are able to guide people to achieve a secure financial future. The professional ability that Ashtons are able to bring to bear on a case means that our clients often come to seek our advice not only from East Anglia but also from many other parts of the country and internationally.

If you are starting to think that your marriage may not endure for what may be a significant period of enforced or elected isolation, then please do get in touch with our family team on 0800 915 6037 or go to https://www.ashtonslegal.co.uk/your-life/family-law-solicitors/. We will arrange a completely confidential and no cost telephone discussion with you so that the ending of your marriage might well be the start of a new, secure and happier life.

Stephen Williams, Partner.

This information is correct at 12.30pm on 26 March 2020.

Keep data in lockdown while tackling the virus crisis

Businesses processing personal data need to keep protection of customer and employee data at the front of continuity planning as they tackle the coronavirus threat.

The increased risk of data security lapses

Staff are likely to be working remotely or under different circumstances which could make customer information more vulnerable to data breaches with cyber-criminals ratcheting up their fraudulent scams. Alongside, data relating to employee health during the pandemic may be subject to special security requirements.  

Businesses are implementing contingency planning with staff working from home and using domestic internet and possibly personal devices to access cloud-based software and systems, making it more important than ever to keep data safe and secure.  

While data protection law doesn’t stand in the way of homeworking, or the use of personal devices, it demands even greater attention to security measures as the ones that you use in the office will need to be tailored to suit these new circumstances.

The human element is often the reason for most data breaches and without direct supervision and colleagues to consult, these may be more likely to happen. Certainly, there are reports of a steep rise in attempted cyber fraud, with many more phishing emails, malware and social engineering, where fraudsters dupe staff into revealing information or making money transfers. 

Handling data belonging to affected people

The other major threat to data security during the crisis is the handling of individual information about staff and visitors, which might include who has travelled to high risk areas, symptoms, test results and when self-isolation has taken place. This is personal data protected by GDPR, but where it concerns health it may be specially categorised data under Article 9 of GDPR, which requires further grounds for processing this kind of data.

Employers will most likely want to rely on the ground in Article 9(2)(b) (“employment, social security and social protection”) to process special category data about their employees. In the UK the Health and Safety at Work Act 1974 says that companies must take steps to look after the health, safety and welfare of staff. This means that it is reasonable, and normal, for businesses to collect certain information as part of their general duty to their staff. There is a clear limit to what employers can collect however, just as the new guidance https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19 from the government makes clear that they expect most employers to collect data about coronavirus just for the purposes of assisting their staff, rather than making plans or a strategy for dealing with it, which are to be left to the NHS. There may be other grounds that businesses can rely on – these will depend on the circumstances and the likely impact of doing so.

Employers should also still be very mindful of the overarching data minimisation principle; that they should only collect what is strictly needed for the task in hand. This means applying limits to what they ask and not having a ‘one size fits all’ approach, since what may be relevant for one person could be irrelevant for another, and collecting that irrelevant information would infringe the minimisation principle.

The ICO has published guidance 

Keeping up parental contact and Coronavirus

Following the drastic measures announced last night on the grounds of public health, there have been many questions as to what this means for separated families throughout the country.

The government have issued some guidance which can be found in the attached document.

The crucial point for separated families is at bullet point three of the first section. The footnote to this bullet clearly sets out that where applicable, it is possible to move children under the age of 18 between the houses of two parents. This means that if you have an order in place providing for your child to spend time with both parents, or if there is an agreement that you have with a former spouse or partner in respect of your children, that this should be adhered to. 

It is important when dealing with the practicalities of this to ensure that the guidance on social distancing is followed where possible during handover, and that if for any reason it is necessary for the household of which the child is apart to quarantine due to illness that NHS advice is followed.

In those situations, it is still possible to consider indirect contact between a child and the parent with whom they are not able to have contact – various social media platforms such as FaceTime or Skype and other forms of indirect contact will make it possible to ensure that a good relationship continues between a child and it’s remote parent. 

It is also important to remember that co-parenting in this situation is crucial and should you need any advice about practical steps that can be taken to try and achieve this, please consider the CAFCASS website https://www.cafcass.gov.uk/

Should you have any specific questions as to how this relates to your family, please contact Joanna Cotgrove or a member of Ashtons’ family law team on 0800 915 6037 or go to https://www.ashtonslegal.co.uk/your-life/family-law-solicitors/

This information is correct at 10.30am on 24th March 2020.

Help Please – LinkedIn group dedicated to connecting businesses

Help Please is a new LinkedIn Group, created by Brian Bush, that is dedicated to connecting businesses who have a need or problem with people/businesses who can help.

It’s simple, if you need help with something post it onto the group, and if you can help with something or direct to an introduction please do likewise.

You can find the group here: https://www.linkedin.com/groups/12385978/

Construction Projects and Coronavirus

Like many businesses across the country, construction projects are being hit by uncertainty, and for many clients, the prospect of their sites being at a standstill for months is a cause of real concern.

Whether it be staff shortages due to self-isolation, or a government-ordered lockdown there is no doubt that this will have ramifications for both employers and contractors, but there are steps you can take now which can minimise your exposure.

At Ashtons Legal we have a specialist construction team who can assist you deal with these difficulties in a commercial and pragmatic way. Sarah Duncan, who has over 19 years experience in the sector has the following comments:

  1. Don’t panic but do prepare! Ask your legal advisor or contract administrator to check the position in the contract, if an issue arises regarding staff shortages this is likely to be a grey area, in the event of a government-ordered “lockdown” this is likely to be a force majeure event which would entitle the contractor to additional time and money if they operate the contract procedures correctly.
  2. Consider ways to minimise your exposure to additional preliminary costs, could you take partial possession of part of the site?
  3. Speak to your contractor and contract administrator and agree on a way forward, the contractor has a duty to try to mitigate costs and delay as much as possible, and taking a conciliatory approach will reduce costs in the long run.
  4. Consider drawing up the agreed terms in a formal agreement, including any options regarding payment terms and drawdown so that both parties have cost certainty.

We are here to support your business through this difficult time, to give you the best opportunity of minimising costs taking early and specialist advice is crucial.  If you have any queries, please contact Sarah Duncan directly on 07484 047524

This information is correct at 1.00pm on 20th March 2020.