COVID-19: Top Tips for Employers

Self-isolating and sick pay

• If any employees and qualifying workers need to self-isolate due to coronavirus, they must receive Statutory Sick Pay(SSP). 
• Employment contracts may provide for more generous sick pay entitlements. 
• Employers may need to be flexible if they require evidence of inability to work, as sick notes may not be possible to obtain for someone who is self-isolating.

Working from home 

• As of 16 March 2020, the government has advised people to work from home wherever possible. We can provide a sample homeworking policy if you do not already have one. 
• If employment contracts contain a mobility clause, that should allow employers to impose home-working.  

• If there is no mobility clause, and employees are sent home without pay, employees could sue either for constructive dismissal or unlawful deduction of wages.  
• Health and safety – employer must take reasonable care to ensure it provides a safe place and system of work. Employers should confirm with employees it is safe, and prepare to pay for adaptations. 
• Providing equipment – employers may contribute towards additional utility bills, paper costs etc., however they may claim costs are offset by savings on commuting. Use of home equipment (such as phones and computers) is likely to depend upon the nature of the job. 
• Monitoring staff – for employers concerned about reduced productivity from home, it is more likely that majority of staff will try to remain productive to avoid risk of future redundancies. 

Lay-offs and short-time working (LOST) 

• A lay-off is essentially a temporary redundancy. Short-time working is defined as being asked to carry out less than half of the normal amount of work whereby the employer will only pay for the work done. This is relevant for so many sectors in the current circumstances. 
• Employers can lay someone off where there is an express contractual right. Alternatively, there may be an agreement in place with the organisation and the union, or contract terms may be altered by mutual agreement. This does not mean that the employee has necessarily agreed to future lay-offs without pay. 
• We expect that in the current climate the government may bring in emergency legislation giving a statutory right to lay-offs even if there is no contractual right and the contract is not varied by consent. 

• While placed on LOST, either by contract terms or by consent, employees with one month’s service are eligible for a statutory guarantee payment (SGP). SGP is subject to a cap of £29 per day (£30 from 6 April), for a maximum of 5 days over rolling period of 3 months. This entitles employees to a maximum SGP payment of £145 over 3 months (£150 from 6 April).  
• If an employee is placed on LOST for 4 consecutive weeks, or 6 weeks in rolling 13 week period, subject to certain statutory requirements the employee is entitled to resign and treat themselves as dismissed on the grounds of redundancy. A statutory redundancy payment is payable after two years of employment. 

Redundancies 

• If redundancies become necessary, ordinarily, employers would have to consult on redundancies for a minimum of 30 days (or 45 days if more than 100 staff are to be made redundant). 
• At present, coronavirus may count as a ‘sudden disaster’ and thus a special circumstance in which employers do not have to consult for the minimum time periods, provided they have taken ‘reasonable’ steps. However, coronavirus is unlikely to be classed as a special circumstance in a matter of weeks, when circumstances are no longer ‘sudden’.  

If you have any further queries, please get in touch with Stephen Ravenscroft below.