CIPP Payroll: need to know 2019-20

This follows on from Chancellor of the Exchequer, Rishi Sunak’s announcement that Statutory Sick Pay (SSP) would be payable to not only those testing positive for COVID-19 or displaying its symptoms, but also to those individuals advised to self-isolate. Regulation 2(1) has been amended to include the following in the definition of those deemed incapable of work: “He is isolating himself from other people in such a manner as to prevent infection or contamination with coronavirus disease, in accordance with guidance published by Public Health England, NHS National Services Scotland or Public Health Wales and effective on 12th March 2020; and by reason of that isolation is unable to work.”

This has confirmed as a temporary measure, applicable for a period of eight months. The legislation is due to expire in eight months, on 12 November 2020.

CIPP comment

The statutory instrument does not suspend the three waiting days that currently need to be observed prior to the payment of SSP, so the CIPP hopes to see a further update that incorporates this in the very near future. Nor does the legislation refer to the recent announcement that businesses with less than 250 staff as at 28 February 2020, will be able to recover up to 14 days SSP from the government.

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Coronavirus latest guidance and legislative updates 18 March 2020

The situation in relation to coronavirus is rapidly evolving and things are changing every day. After laying emergency legislation on 12 March 2020, the government then pushed through a secondary piece of legislation on 16 March 2020.

The initial legislation lay the ground for anyone in self-isolation due to potential infection of COVID-19 to be deemed as being ‘incapable for work’. This new legislation came into force from 13 March 2020, and will be applicable for an eight- month period, up until 13 November 2020. The second piece of legislation was published on 16 March 2020, to come into effect from 17 March 2020. The key difference between the two items was that the government guidance on 16 March advised individuals to self-isolate for a period of 14 days but before that point, the instruction was to self-isolate for seven days. The secondary legislation allows for the 14-day period of self-isolation.

The Department for Work and Pensions (DWP) has also published updated guidance in relation to ‘coronavirus and claiming benefits’. Within the guidance, it states:

“If you cannot work due to coronavirus and are eligible for Statutory Sick Pay, you will get it from day one, rather than from the fourth day of your illness. DWP intends to legislate so this measure applies retrospectively from 13 March 2020.

Statutory Sick Pay will be payable if you are staying at home on Government advice, not just if you are infected by coronavirus. This will apply from 13 March 2020.”

There has been much confusion relating to when the rules relating to SSP being paid from day one as opposed to day four would be applicable from, but this latest piece of guidance gives pretty much concrete confirmation that it took effect from 13 March 2020.

CIPP comment

At the point of writing, the legislation relating to SSP being paid from day one, and any regulations relating to the fact that employers with less than 250 staff can reclaim up to 14 days’ worth of SSP for coronavirus related absence

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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