Tag: employment

First Minister: further action to tackle ’employment challenge created by Covid’

Statement given by the First Minister Nicola Sturgeon at a media briefing in St Andrew’s House on Tuesday 19 May:

Good afternoon everybody. Thank you for joining us. I want to start – as I always do – by updating you on some of the key statistics in relation to Covid-19 in Scotland.

As at 9 o’clock this morning, there have been 14,655 positive cases confirmed – an increase of 61 from yesterday.

A total of 1,447 patients are in hospital with Covid-19 – 969 who have been confirmed as having the virus, and 478 who are suspected of having Covid. That represents a total increase of 20 from yesterday, but within that a decrease of 36 in the number of confirmed cases.

A total of 59 people last night were in intensive care with either confirmed or suspected Covid 19. That is a decrease of 4 since yesterday.

I am also able to confirm today that since 5 March, a total of 3,408 patients who had tested positive for the virus have been able to leave hospital.

Unfortunately though I also have to report that in the last 24 hours, 29 deaths have been registered of patients who had been confirmed through a test as having Covid-19 – that takes the total number of deaths in Scotland, under that measurement, to 2,134.

Tomorrow we will have the latest publication from National Records of Scotland, which include not only people that have died having tested positive but all those deaths where Covid-19 has been mentioned on a death certificate.

As always, I want to send my deepest condolences to everyone who has lost and is grieving for a loved one as a result of this virus.

I also want to thank – as I always do – our health and care workers. The whole of the country continues to be very grateful to you for the extraordinary work that you are doing in these very challenging circumstances.

I have two items I want to briefly update on today. The first relates to the publication this morning of the latest employment figures in Scotland. These are for the period from January to March of this year. These are the first figures that include any of the period of the Covid-19 crisis.

They show that 113,000 people in Scotland are now unemployed – that is up from just under 100,000 in the previous three months.

That is an unemployment rate of 4.1%. Now, by historical standards, that actually is still a relatively low rate but of course it is important to stress that these figures, since they only extend up to the end of March, do not reflect the full economic impact of the pandemic.

They undoubtedly further demonstrate the need to carefully get our economy moving again as quickly as we are able to do that safely. And they underline the continuing need for government action to support the economy, and to help people keep their jobs or to enter or re-enter the workforce.

We know that the essential public health measures that we have had to take to deal with what is a public health emergency, are in themselves creating an economic emergency and that will have impact on people’s jobs, living standards and inequalities in our society.

And although the Job Retention Scheme has offered some relief to many employers and employees, I am very aware that many people will be deeply concerned about the future of their livelihoods.

That is why we have already allocated more than £2.3 billion to support businesses and protect livelihoods, and it is why we have welcomed so warmly many of the measures taken by the UK Government –including the Job Retention scheme.

In addition, Skills Development Scotland – as I discussed last week – has expanded its support for people seeking training or employment by establishing a phoneline and online service. The new online service – which highlights links to free courses which are available – has received 120,000 visits since it launched just over three weeks ago.

Today we are taking further action to tackle the employment challenge created by Covid.

Our Enterprise and Skills Strategic Board – which was first established 2 ½ years ago – will co-ordinate rapid action across our enterprise and skills agencies.

In doing so, it will ensure that our actions, now, are helping to equip people with the skills they need for the future. It will report back to us in June on what additional measures we need to take.

However I can confirm today that we will be investing a further £33 million to support people back to work as we gradually get the economy opened up again.

This initial  funding – most of which will be allocated to Fair Start Scotland, our devolved employability service –  will have a particular focus on helping those most adversely affected in times of economic downturn –  which are young people, disabled people and lone parents.

Today’s announcement is one further action amongst many in our efforts to tackle the economic impacts of this crisis, but it is, I think, an important one.

We know all too well from previous recessions that the longer people stay jobless, the greater the chance of further impacts – their skills can deteriorate, their confidence can fall, and that in turn can have an impact on future prospects.

We also know that these effects are of course bad for individuals – especially young people – and that they are also damaging for the economy as a whole. And that means that when an upturn comes, when the economy starts to recover, employers can find it more difficult to hire the people they need.

For all of these reasons, we are determined to do everything we can to protect Scotland’s workforce; to minimise – as far as we can  – the increase in unemployment; and to ensure that we are ready for a sustainable recovery. Today’s actions represent a further step in helping us to do that.

The second issue I want to talk about relates to the fact that this week is Mental Health Awareness Week. This year’s theme is kindness.

In many ways that’s especially appropriate right now. Kindness should, I think, be one of the core values of any good society.  And, as I suspect most of us have experienced in recent weeks, even small acts of kindness can make a huge difference to the way someone is feeling.

We have been aware throughout this crisis of the impact that Covid-19, and our lockdown measures, are likely to have on people’s mental health.

That is why we have expanded NHS 24’s telephone and online services to support mental health; it’s why we established a National Wellbeing Hub to support the mental health of NHS and social care staff; and it’s also why we launched the “Clear Your Head” campaign, which you may have seen in the media.

Clear Your Head provides practical advice on how to stay active, keep connected with friends and family, and create healthy routines to help get through this crisis.

Today we are making a further investment to support the mental health and wellbeing of parents and carers in particular.

Solihull Online is a programme that helps parents and carers to learn about what their  child may be going through, and developing nurturing and supportive relationships. From today, all parents and carers in Scotland will have access to the programme and if you are interested in this you can find more information by going to ParentClub.scot.

The final point I want to make, is that one of the most important things to remember during Mental Health Awareness Week, is that it’s okay not to feel okay – and that help is available.

You can speak to someone if you need to, and I would encourage you to do so. The Clear Your Head website – clearyourhead.scot – brings together our information about support that is available for mental health.

So please have a look at the website during the Awareness Week. And please, continue, as far as all of us can, to show kindness to each other as we try get through this crisis together.

Before I hand over to the CMO, I want to emphasise once again our key public health measures.

As is said yesterday, on Thursday this week we will publish a routemap, setting how on a phased basis, we will ease the lockdown while continuing to suppress the virus.

My hope and intention is that we will take the first concrete steps on that journey next week.

But, we will increase both the likelihood and the extent of that by sticking to the rules now.

Please stay at home except for essential purposes- such as daily exercise, going to essential work that you can’t do from home, or buying essential items.

You can now exercise more than once a day – but when you do leave home, stay more than 2 metres away from others. And do not meet up with people from other households.

Please think about wearing a face covering if you are in a shop or on public transport. And remember to wash your hands thoroughly and regularly.

Finally, if you or someone else in your household has symptoms of Covid-19, then you should stay at home completely. Those symptoms are a high temperature, a persistent cough, or now a change or loss of smell or taste.

For now, these restrictions do remain essential.

They are helping us to slow down the spread of the virus, to protect the NHS, and to save lives.

So thank you once again, to everyone, for your cooperation.

Young workers hardest hit by coronavirus downturn

Over one in three 18-24 year olds, and three in ten workers in their early 60s, are receiving less pay than they did at the start of the year, compared to less than a quarter of workers aged 35-49, according to new Resolution Foundation published today.

The report is published on the day it was announced that UK unemployment rose by 50,000 to 1.35 million in the three months to March, when the effects of the coronavirus lockdown started to affect the economy.

The report, Young workers in the coronavirus crisis, based on a survey of 6,005 UK adults in early May and supported by the Health Foundation, examines how the current crisis has already affected workers of different ages in terms of their jobs, pay, hours and working conditions. It is published ahead of official labour market data today covering the three months to March this year (and only the very start of the crisis).

Previous Resolution Foundation research has shown that excluding students, young people  tend to be hit hardest during downturns, and are particularly at risk in the current one as they are more likely to work in the hardest hit sectors of the economy, such as hospitality, leisure and retail.

Looking at workers’ current earnings compared to the start of the year, the research finds that employees across all age groups are more likely to be earning less than they did in January than earning more, though young and older workers are most affected.

Among 18-24 year olds, 35 per cent are earning less than they did  before the outbreak, and 13 per cent are earning more. Employees in their early 60s are the next most likely to be receiving less pay (30 per cent), with a further 9 per cent receiving more pay. By contrast, 23 per cent of 35-49 year olds are earning less, while 5 per cent are earning more.

The research shows that young people are also the most likely to have lost work – though other age groups have been affected.

One in three 18-24 year olds employees have lost work, either through being furloughed (23 per cent) or losing their jobs completely (9 per cent).

One in five (20 per cent) employees in their late 20s (aged 25-29) have either been furloughed or lost their jobs, along with around one in six (18 per cent) workers in their early 60s (aged 60-64).

Employees aged 35-44 are the least likely to have been furloughed or lost their jobs, with around 15 per cent experiencing this since the crisis began.

The Foundation says the big pay reductions and job losses for young and older employees are a huge concern, for very different reasons.

Younger workers deeply affected by the crisis today risk have their pay scarred for years to come – causing a long-term reduction in their living standards. Older workers risk being involuntary retired well before reaching their State Pension Age, or not having time to make-up their current earnings shortfall. Both risks could cause a permanent hit to their incomes through retirement.

The Foundation says that the scale of pay reductions since the crisis began would be even greater where it not for the Job Retention Scheme. The research finds around one in five furloughed employees are still receiving full pay (despite state support being capped at 80 per cent), including over a quarter of workers aged 35-44.

Finally, the Foundation says that the Government needs to start preparing its response to the next phase of the crisis, which should include policies such as Job Guarantees for young people, and broader fiscal stimulus to boost demand in the economy and raise household incomes.

Maja Gustafsson, Researcher at the Resolution Foundation, said: “Our research confirms fears that young people are being hardest in the current crisis. One in three young people have been furloughed or lost their jobs completely, and over one in three had had their pay reduced since the crisis started.

“But while young people are in the eye of the storm, they are not the only group who are experiencing big income shocks. Britain is experiencing a U-shaped living standards crisis, with workers in their early 60s also badly affected.

“That is why the Government’s strategy to support the recovery should combine targeted support to help young people into work, with more general stimulus to boost demand across the economy and help households of all ages.”

Report: Young-workers-in-the-coronavirus-crisis

The number of people claiming unemployment benefit in the UK soared to 2.1 million in April, the first full month of the coronavirus lockdown. 

The April total rose by 856,500, according to Office for National Statistics (ONS) figures.

Before the lockdown began, employment had already hit a record high before the lockdown began.

The situation is actually even worse than these desperate figures show – benefit claimant count does not include everyone who is out of work, since not all can claim assistance.

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.

  • Coronavirus Job Retention Scheme will continue until end of October
  • furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.

“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”

Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.  

“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.

“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”

Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.

“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”

Extension to Furlough Scheme could cost the Government £70 billion

The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.

Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold.  If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.

She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.

From the announcement today, we now know that:

–          Support will be continued to the end of July in full, with employers required to contribute after that date.

–          Part time working will be permitted, but only for some employees

–          The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained

Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.

“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”

So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.

The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn.  These are very significant sums, amounting to around 10% of total Government receipts.

As Britain seeks to get back to work, the pressures on different sectors will be very uneven.

While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.

And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.

Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work.  But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.

“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be.  Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.

“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”

Last orders? CAMRA responds to extended lockdown

Responding to the Scottish Government’s strategy to exit lockdown measures, which state that gathering in pubs is likely to be banned or restricted ‘for some time to come’, CAMRA Director for Scotland Sarah Crawford said: “While the Government must follow scientific advice and do what is right to keep people safe, this will undoubtedly be a huge blow for pubs and breweries. 

“The pub and brewing sector was among the first to be hit by the lockdown and it is set to be among the last to get back to normality. One thing many people are looking forward to when all this is over is going down the pub to meet friends and family for a drink.

If the Scottish and UK Governments do not make sure that our local pubs and breweries receive all the financial support that they need to weather this crisis, we risk not having them around at all when all this is over.”

Getting tourism ready for recovery

A call has gone out to those with skills, expertise and experience, who are currently ‘furloughed’ or on a reduced working pattern, to help address the challenges facing Scotland’s tourism sector. 

In 2017, the sector provided employment for eight out of every 100 Scottish workers, but thousands of tourism business owners are naturally feeling anxious about the future in the wake of coronavirus.

The call to arms – ‘Getting ready for recovery’ – has been championed by around 120 alumni of the Destination Leaders Programme (DLP), a joint initiative for tourism industry professionals delivered for the past seven years by Edinburgh Napier University and Scottish Enterprise.

DLP alumni to mentor furloughed tourism workers along the road to recovery

The aim of the furlough initiative is to help small tourism businesses recover by providing targeted support and mentoring that can enable them to take forward identified actions, outputs and outcomes during this period of enforced reflection.

Professor Jane Ali-Knight (above) of Edinburgh Napier University’s Business School, explained: “It is intended that involvement will fall under the acceptable category of professional training for ‘furloughed’ professionals, and will help maintain and extend their professional skills, expertise, experience and network.”

This will mean projects taken up will be focused on objectives that underpin The Scottish Tourism Strategy to 2030, as well as wider destination leadership, development, management, industry resilience and recovery, and destination promotion.

Aileen Lamb from Scottish Enterprise said: “The objective is to support recovery and potential restructure of the Scottish tourism industry. We want to use this opportunity to encourage innovative thinking across a range of themes.

“Most importantly we want to encourage the supportive and adaptable nature of tourism professionals to shine. The initiative will include a weekly online session called DLP Assemble giving businesses a collaborative place to gather regular updates on initiatives and government funding as we look towards the point when restrictions can be lifted.”

Ali-Knight says: “We will guide participants on themes and tasks arising through the DLP Assemble initiative, to help form project groups with a good mix of experience and expertise, and to match groups with mentors and professional support.”

Kenneth Wardrop, a fellow DLP founder, says: “We want to act quickly, working with existing groups such as ETAG [Edinburgh Tourism Action Group] and STERG [Scottish Tourism Emergency Response Group] in order to start applying practical thinking and solutions in response to the evolving and devastating impacts on Scotland’s tourism industry.”

Edinburgh Napier University is also running a free online course through FutureLearn to help small tourism businesses understand the power of data they hold or can access in helping them market themselves more effectively at this critical time.

‘Understanding Data in Tourism’ is open now for people to register for the next starting point, on 16 May, by visiting: 

futurelearn.com https://www.futurelearn.com/partners/edinburgh-napier-university

Job retention scheme goes live

The UK Government’s Coronavirus Job Retention Scheme goes live today, with businesses able to claim up to £2,500 a month per employee towards staff wages.

The scheme is live 10 days ahead of schedule and will help hundreds of businesses across Edinburgh and the Lothians.

The job retention scheme, announced by Chancellor Rishi Sunak as part of a package of support to protect jobs and businesses, allows employers to claim for a cash grant of up to 80% of a furloughed employees wages, capped at £2,500 a month.

Employers can apply for direct cash grants through HMRC’s new online portal – with the money expected to land in their bank accounts within six working days. 5000 HMRC staff have been allocated to operate the scheme.

Last week the Chancellor announced the scheme will be extended for a further month until the end of June, to reflect continuing Covid-19 lockdown measures.

Employers can access the scheme here: https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

Lothians MSP, Miles Briggs, said: “This is welcome news for employees and employers who have had to shut shop during the Coronavirus lockdown.

“Without this much needed support many businesses across the region would have struggled to continue operating.

“The UK government and HMRC civil servants have done exceptionally well to get this scheme up and running so fast.”

Chancellor of the Exchequer, Rt Hon Rishi Sunak MP, said: “Our unprecedented job retention scheme will protect millions of jobs across the country and is now up and running. 

“It’s vital that our economy gets up and running again as soon as it’s safe – and this scheme will allow that to happen.”

Employment Q & A for Furloughed Staff

HELP IS being offered to employers and furloughed employees who are grappling with multiple questions when it comes to managing the new furlough process.

Gilson Gray has issued guidance on the main points from new Government advice for employers and furloughed employees, covering such issues as can employees take on an additional job, does salary include benefits, what happens to holiday leave?

Graham Millar, Employment Law Partner at Gilson Gray, said employers and their employees can now be better informed on key issues around calculating salaries, additional work, and holiday entitlements.

Graham said: “Furloughed employees are now expressly allowed to take on additional employment for different employers, but only if their old employment contract allows it. If your contract doesn’t mention additional work, your employer is able to change it to allow you to take on a second job.

“For employers calculating a salary, you can’t include non-monetary benefits, like the value of a company car, within the 80% payment rule. Whether you can include car allowances remains to be clarified by the Government.

“It’s good news for employees whose income relies on commission payments – your employer can add in “compulsory”, meaning contractual, commission from HMRC as well as your basic salary before calculating the 80% figure.”

More good news comes for employers of smaller businesses, as the Government has now said employees can be furloughed multiple times, as long as each furlough period is a minimum of three weeks. This allows employers or smaller businesses to rotate their available workforce.

Graham added: “There’s still no formal guidance on the issue of holiday leave and holiday pay for furloughed workers, which means the Working Time Regulations still apply as normal.

“Under those regulations, employers can tell employees when to take holidays if they give enough notice, and a lot of employers will want employees to use some of their accrued holidays during furlough so they can avoid weeks’ worth of holiday requests after the lockdown has ended.

“While the Government has extended how long you can carry holidays for, it makes sense for people to use holidays while on leave – but questions remain as to whether holiday pay affects ‘salary’ in terms of the Job Retention Scheme. We’re hoping this will be clarified soon.”

A full version of this guidance is available on: 

https://gilsongray.co.uk/insights/covid-19-governments-job-retention-scheme-what-about-holiday-leave-and-holiday-pay/

The Employment Team at Gilson Gray will continue to publish updates and information for employers and employees on its website News and Insights blog, https://gilsongray.co.uk/news-insights/

All of the teams at Gilson Gray are continuing to maintain the firm’s excellent, high quality service to clients, providing a full range of legal services throughout the pandemic. 

For more information on Gilson Gray and its services, please visit: http://gilsongray.co.uk/

What are the rules if you’re temporarily laid off?

If you’re one of the workers who’ve been asked to go on furlough, make sure you know your rights.

The coronavirus outbreak has put the UK economy under immense strain, with businesses across the country shutting down to prevent the spread.

After discussions with trade unions, the government is to plough billions of pounds into a furlough scheme that will see the taxpayer give businesses 80 per cent of the wages of those employees who are temporarily laid off.

This should stop those business suffering a drop-off from making workers permanently redundant. It will ensure that more workers have enough money to cover their bills and leave businesses well-placed to ramp up activity once demand picks up again.

But while measures to protect jobs are welcome, it’s important that employers follow the rules when sending staff on furlough.

And if you’re one of the workers who’ve been asked to go on furlough, make sure you know your rights.

Despite the government having recently published guidance on how the scheme will operate, there are still a number of unanswered questions about the scheme. But this is what we know right now:

Bosses must follow the rules

Bosses can’t just stick workers on furlough or shorter hours.

An employee is regarded to have been laid off during a particular week if the employer does not have sufficient work for the employee and the employee is not paid as a result. (s.147(1) of the Employment Rights Act 1996).

What does your contract say?

If your contract contains the right for the employer to impose a lay-off, they can simply do so.

But it needs to be for a reasonable period of time, not indefinite.

Collective agreements between employers and unions will normally include provision for minimum payments if employees are laid off for a period.

If it’s not in the contract, then the employer needs your written, informed consent. And they have to make it clear how long the lay-off will be.

The lay-off has to be kept under review and the employer must seek further consent if it lasts longer than expected.

What happens if this isn’t in your contract and you say “no”?

If an employee or their union objects to the lay-offs, the employer cannot simply impose it.

If workers say “no” and the employer attempts to press ahead, employees can resign and claim unfair constructive dismissal, and possibly also claim a statutory redundancy payment.

Or they can continue in employment but claim any shortfall in pay under the unauthorised deduction of wages laws.

This is especially helpful if you haven’t got the two years’ service needed to claim unfair constructive dismissal.

How much will I get paid?

The government will stump up 80 per cent of the wage costs of those laid off. It will also cover employer costs such as their National Insurance and pension payments at the minimum legal level.

It will only cover basic salary and not commission payments and is capped at £2.500 a month. This means that, as it stands, those who currently receive piece work “bonuses” would see their income fall substantially.

Employers can, and we believe should where they can afford it, top up wages to 100 per cent.

If your pay varies, your employer can claim for the higher of either the same month’s earnings from the previous year or average monthly earnings from the 2019-20 tax year.

Who does it cover?

Employees who are paid via Pay as You Earn payroll, which is likely to include a number of agency workers as well as those working via zero hours arrangements. They must have been on the organisation’s payroll as of 28 February 2020.

The scheme also covers employees who were made redundant since 28 February 2020, if they are rehired by their employer.

But, as it currently stands, those workers who have gone onto short-time working will not be covered by the scheme. Those workers will not have their wages topped up to normal levels.

What about the self-employed?

The self-employed (or at least most of them) are covered by a separate Self Employed Income Support Scheme.

Am I entitled to redundancy payments?

An employee who has agreed to furlough (or to short-time working) either for four consecutive weeks or for a total of six weeks (no more than three being consecutive) in any period of 13 weeks can resign and claim a redundancy payment.

How do employers decide who goes on furlough?

Employers must use a fair process for selecting employees for furlough and be very clear about why they are making certain decisions.

They must be careful not to discriminate against particular groups of workers who are protected by equality law, either directly or indirectly.

For example, they must not choose to furlough a worker because their race or because they are pregnant, to do so would be direct discrimination.

Similarly, they should not ask disabled workers to agree to a temporary lay-off to avoid putting in place reasonable adjustments that would allow them to continue working during the current outbreak.

Examples of indirect discrimination would be selecting workers for furlough because of their caring commitments, a group of workers in which women are overrepresented.

I have two jobs. If I am furloughed from one, what happens to the other?

Each furlough arrangement applies to a single job you do. So you can continue working in one job while furloughed from another. The pay cap applies to each employer individually.

Can my employer give me work to do during furlough?

No. A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for their employer.

But if you are asked to do training you must be paid at least the minimum wage/National Living Wage, even if this is more than the 80 per cent of wage that will be subsidised by the government.

Tim Sharp, TUC

National Living Wage increases today

The National Living Wage (NLW) will increase today (Wednesday 1 April) to £8.72, giving a pay rise to thousands of workers at the frontline of the UK’s response to Covid-19.

This rise follows recommendations made to the Government by the Low Pay Commission (LPC) in the autumn. It means the rate reaches the target of 60 per cent of median earnings, originally set by the Government in 2015.

In the 11 March Budget, the Government confirmed its ambition for the NLW to continue increasing towards a new target of two-thirds of median earnings by 2024. It asked the LPC to advise on whether the economic evidence warranted these increases. The LPC will make its recommendations to Government on the 2021 National Minimum Wage rates in October.

Bryan Sanderson, Chair of the Low Pay Commission, said: “Many of the nation’s key workers – in, for example, the care sector, agriculture, transport and retail – are low-paid, are continuing to work in very difficult conditions and will benefit from today’s increase.

“At the same time, the Government has introduced a comprehensive package of support for employers to lessen the impacts of these extraordinary circumstances.

“Under our new remit, the Government asks us to monitor the labour market and the impacts of the National Living Wage closely, advise on any emerging risks and – if the economic evidence warrants it – recommend that the government reviews its target or timeframe.

“This is what the Government refers to as the ‘emergency brake’. The ongoing Covid-19 pandemic clearly represents a very challenging set of circumstances for workers and employers alike, and will require us to review whether the emergency brake is required when we next provide our advice to the Government. This advice will be crucially dependent as always on the economic data we receive.”

The LPC has published a short report looking at the NLW’s path to the 60 per cent target and outlining how we will approach the new two-thirds target. This report does not set out a pathway to the new target, given the uncertainty over the current and future state of the labour market.

The other rates of the National Minimum Wage will also increase alongside the NLW:

Previous rate Current rate from 1 April 2020 Increase
National Living Wage £8.21 £8.72 6.2%
21-24 Year Old Rate £7.70 £8.20 6.5%
18-20 Year Old Rate £6.15 £6.45 4.9%
16-17 Year Old Rate £4.35 £4.55 4.6%
Apprentice Rate £3.90 £4.15 6.4%
Accommodation Offset £7.55 £8.20 6.4%

New research shows overwhelming support for further increases in order to tackle low pay.

The report, based on a large-scale representative survey of adults across the UK and focus groups with low paid workers, found that two in three adults (66%) thought that the wage floor was too low, and that it should be increased, with just one in fifty (2%) saying it was too high. Support for boosting the minimum wage was highest among young adults, low income households, and those in lower socio-economic groups.

The National Living Wage – the mandatory minimum wage for workers aged 25 and over – increases by 51p to £8.72.

The largest cash boost to the minimum wage since its introduction comes at a difficult time for the economy and household incomes, with many businesses and workers deeply affected by the coronavirus crisis.

The increase was announced in December, when employment stood at a record high, and when there was no indication of the scale of the damage coronavirus would cause.

Even before the current crisis, half (48%) of adults surveyed agreed that government should take a cautious approach to setting the wage floor to avoid an increase in unemployment; while one in three (37%) said government should take a more ambitious approach to increasing the minimum wage, even if it risked a small increase in unemployment.

There was however strong support for the government’s long-term plan to increase the National Living Wage to two thirds of median pay by 2024 – forecast to be £10.50 – and extend it to all workers aged 21 and over. Nearly seven in ten adults (66%) supported the proposal and fewer than one in ten (9%) opposed.

Despite the increase in the minimum wage in recent years, the number of adults in in-work poverty had grown, even before the coronavirus crisis. Low paid workers described the impact poverty has on their lives; from being unable to afford the basics and getting into debt, to having to work multiple jobs.

While low paid workers supported a higher minimum wage, many were sceptical about the extent to which it will benefit them. Low paid workers felt that increases in pay as a result of a higher minimum wage would be offset by lower Universal Credit income, leaving them little better off.

Low paid workers were also pessimistic about how businesses would respond to a higher wage floor, with many fearing their employer would cut back on other benefits, or reduce hours or staffing in response.

The report is the first in a programme led by Learning and Work Institute and Carnegie UK Trust, exploring the impact of a higher minimum wage on workers, employers and the economy. The programme will set out how a higher wage floor could be part of a broader strategy to tackle low pay and in work poverty and promote good work.

Joe Dromey, deputy director of research and development at Learning and Work Institute said; “The minimum wage has helped tackle extreme low pay without costing jobs. While this increase comes at a difficult time, it will mean a welcome pay rise for millions of workers.

“There is overwhelming support for future increases in the minimum wage – particularly among low paid workers. With the economy likely to take a big hit from coronavirus, the government will need to think carefully about how this can be delivered, but it should remain focused on both tackling low pay and in-work poverty.”

Douglas White, Head of Advocacy at the Carnegie UK Trust, said; “Decent pay is a critical aspect of good work, vital to help workers provide for themselves and their families, and clearly maintaining incomes is at the forefront of people’s minds at this time of crisis.

“National Minimum Wage policy is not the only route to supporting the living standards of workers – Government has also taken significant steps in recent weeks to maintain people’s incomes through the Coronavirus Jobs Retention Scheme and the social security system.

“However, we welcome this week’s uprate in the Minimum Wage, and we encourage the UK Government to continue their commitment to an ambitious minimum wage policy. Our research demonstrates that even before this current crisis, far too many workers feel that wages do not cover the cost of living and that despite working hard they are being pushed in poverty.”

The-future-of-the-minimum-wage-The-worker-perspective-report

STUC warns employers over contract and health and safety breaches

The STUC has issued a stark warning to employers following complaints from workers about companies keeping open for non-essential work and pressuring employees to present for work even while business was suspended.

It warned employers that they could find themselves in implied breach of contract and face future constructive dismissal claims if judged to be endangering workers. With Government advice making clear that only essential work should continue, the burden of proof would be on the employer to prove they had acted reasonably.

The STUC also said that employers have a statutory duty to risk assess for COVID-19, as it is a ‘substance hazardous to health’, and to put in place a safe system of work.

STUC General Secretary Designate, Rozanne Foyer said: “While many employers have acted swiftly and correctly too many have not. This has caused general confusion and real alarm. Union offices across Scotland have been inundated with calls from members. Meanwhile the STUC is fielding questions by the minute from worried workers.

“Our advice to workers is clear, contact your union for support, join a union and in the meantime contact the STUC for advice. Speak to other workers and make a joint demand of the employer to present clear justification of a decision to compel you to work.

“Contact your health and safety rep if available or otherwise insist on seeing the full risk assessment your employer is obliged to undertake.”