TMS COVID-19 Update

Source – Tara Management Services

Firstly, we would like to say a massive well done to all our Clients over the last two weeks, it has been a complete roller-coaster of fast-moving Government guidelines and restrictions. 

As you are aware the Construction sector is still permitted to operate in line with Government guidelines.  However, some Companies have taken a decision to temporary shut down operations for a number of reasons including operating restrictions, lack of supplies or a reduction in current workload. Also, some Companies continue to operate where possible.

As you will aware the Construction Industry has the temporary lay-off provision within its sector, and this can be utilised where the provision is found within an employee’s contract of employment.

For sectors that did not have this provision the Government rolled out the “Furlough” scheme.

The HMRC are currently in the process of putting together the Job Retention Scheme (JRS) by way of a portal.

The scheme will enable Employers to claim 80% of each eligible employees normal pay up to a limit of £2500.00 per month.  The monies will be transferred into the Company’s bank account via bacs and claims can be made every three weeks.

Employers have been advised to continue to pay 80% of the employees’ this can be backdated to the 1 March 2020, where applicable.

Some Companies are topping up the wage to 100%, this is not a requirement and is at the discretion of the Company.  As employers have to bear in mind future cashflow to sustain the business.

If Employers need short term cash flow support, they may be eligible for the Coronavirus Business Interruption Loan Scheme.

Where an employee has been placed on temporary lay-off, they would switch to a furlough worker once the HMRC portal is available and the date of their claim would be backdated to when they were laid-off.

TMS will continue to operate throughout this current situation and please feel free to contact us should you need any guidance, templates etc.

Temporary Lay-Off 

Temporary lay-off increase to £30.00 per day from 06 April 2020

Or 5 days x £30.00 = £150 a week

After 13 weeks of lay-off a second payment of £30.00 x 5 (£150.00) is due

Compensation Award 

From 6th April 2020 the maximum award for unfair dismissal will be £ 88,519.00

Redundancy Pay 

Redundancy pay has increased to £538.00 - per week from 6 April 2020                                                  

Maximum redundancy payment (30 x £538.00) = £16,140.00

National Living Wage & National Minimum Wage increase - 1st April 2020

From 1st April 2020, the new rates are:

The National Living Wage

• Age 25 and over - up 6.2% to £8.72

The National Minimum Wage

• Age 21 to 24 yrs - up 6.5% to £8.20
• Age 18 to 20 yrs - up 4.9% to £6.45
• Under 18 yrs - up 4.6% to £4.55
• Apprentices - up 6.4% to £4.15

Statutory Sick Pay - SSP

£19.17 per day (£95.85 per week) – 6th April 2020

Earning Threshold

£120.00 per week – 6th April 2020