COVID-19: Second national lockdown – employment implications

3 min read

  1. The “stay at home” message returns. This will be enshrined in law, with only a limited range of exceptions.
     
  2. The exceptions will include attending work, if you cannot work from home. The regulations imposed during the first lockdown in March only allowed people to attend work where it was “not reasonably possible” to work from home. Although the regulations for the new second lockdown have not yet been published, it seems likely that a similar formulation will be used.
     
  3. Workplaces should stay open where people cannot work from home. The examples quoted in the guidance are in the construction or manufacturing sectors.
     
  4. The Government has however ordered certain businesses and venues to close. These include all non-essential retail, indoor and outdoor leisure facilities, entertainment venues and personal care facilities.
     
  5. Furlough is being extended until December. The Coronavirus Job Retention Scheme (CJRS), which was due to close on 31 October, will remain open ‘until December’ (no more precise date has yet been given). The government has issued separate guidance on the furlough extension (available here), which confirms that the level of support offered will be similar to that offered in August. This means that:
    1. Employers can claim up to 80% of the employee’s normal salary for hours not worked, up to a maximum of £2,500 per month.
    2. Employers will only be required to fund employer national insurance and pension contributions for those hours not worked.
    3. Flexi-furlough remains possible, and the employer must pay the employee as normal for any hours they work.

To be eligible to be claimed for under the CJRS extension, employees must have been on an employer’s PAYE payroll by 23:59 on 30 October 2020. Subject to that, there is no requirement that either the employer or the employee has previously utilised the CJRS. Again, more detailed guidance on the CJRS extension is expected in the coming days.
 

  1. The Job Support Scheme has been delayed. Given the return of the CJRS, the Job Support Scheme (JSS) which was due to launch on 1 November has been deferred until the CJRS extension ends.
     
  2. At this stage, there is no return of ‘shielding’. Those who are clinically extremely vulnerable are being advised not only to minimise their contacts with others, but also not go to work if they are unable to work from home. It is not yet clear if these individuals will be entitled to statutory sick pay (SSP) in these circumstances; the limited guidance we have so far states that these individuals “may” be eligible for SSP, but the current regulations require the individual to have a shielding notification. Full new guidance on the position of clinically extremely vulnerable individuals has been promised.
     
  3. The new measures will apply nationally for four weeks until 2 December. At the end of this period, the government will look to return to a regional approach (depending on the data at that time).

What should employers do now?

  • Employers should look out for the detail of the new restrictions as they are published in the coming days.
     
  • Employers will need to assess whether any of their workplaces will be required to close under the new restrictions.
     
  • For those which can remain open, employers will need to decide what approach they will take to employees attending the workplace.
     
  • Employers will need to assess whether to make use of the CJRS extension. This may require new agreements with employees or unions, and agreements which had been put in place in anticipation of the JSS may need to be amended.
     
  • Provision will also need to be made for any clinically extremely vulnerable employees to work from home wherever possible. There may also be some scope for these individuals to be furloughed, if working from home is not feasible.