According to the latest government guidance, under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of the salary of those employees that would otherwise have been laid off during this crisis.
As an organisation that deals with many clients in the hotel and leisure sector, where wide-spread layoffs are predicted, G+S is keeping a careful eye on all the support that is being provided. Here is our current understanding of the situation and the process that companies will need to go through:
- HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are currently working urgently to set up a system for reimbursement.
- To access the Scheme, you will have to designate affected employees as ‘furloughed workers,’ and notify them of this change. It is our understanding that furloughed workers should not undertake any work.
Things are moving fast, but here are ten steps you should be thinking about to access this important support package:
Step one
Find out as much as you can about the Scheme and get advice on any aspect that you are not certain of. G+S will be happy to help. Go to the government’s website to start.
Step two
Start communication with all of your workforce, bringing in stakeholders such as Trade Unions to get buy-in.
Step three
Decide on which employees are most ‘at risk’ of being made redundant. Identify those employees that will remain in employment and those that you will furlough.
Step four
For those employees you decide to furlough, look at their pay over the 12 weeks up to the end of February (these are the current dates, they may change). This will establish the base pay that will qualify for the grant.
Step five
For those furloughed employees for whom the £2,500 cap will apply, think about how you will ‘top up’ their pay outside of the grant. NB: You can choose to ‘top up’ salaries in this way, but it’s not compulsory.
Step six
Think about your options for paying those workers that you will not furlough.
Step seven
Prepare your application to HMRC and ensure your HR department is ready to implement all necessary changes to payroll.
Step eight
When the new HMRC portal is up and running register and log-on.
Step nine
Submit all required information to HMRC.
Step ten
Receive reimbursement via new system.
For more information and support and to see how G+S can help your business at this challenging time contact:
Pete Seymour (Hotel and Leisure)
Peter.Seymour@g-s.co.uk
Calum Campbell (Managing Partner)
Calum.Campbell@g-s.co.uk
