substantially increased SSP costs. Legislative amendments are being made to provide relief to employers, and particularly those employers who are classed as small or medium in size.
The Secretary of State will be able to make regulations regarding the recovery from HMRC of additional payments of SSP for certain employers for absences related to COVID-19. Employers need to be supported in periods when their payments of SSP are likely to increase, and it is also important to ensure that employees are incentivised not to attend work when advised not to do so, to prevent the further spread of coronavirus. SSP is not usually payable for the first three days of sickness, which are often referred to as “waiting days”. It has been recognised that this may discourage people from taking sick days, in order to prevent the spread of COVID-19, so the Bill allows for the temporary suspension of waiting days. This is applicable to employees who are absent from work due to COVID-19. The approach to SSP and waiving waiting days will require flexibility and will need to align with the most up-to-date public health guidance. Guidance issued by Public Health England, National Health Services Scotland, Public Health Wales and the Regional Agency for Public Health and Social Well-being will be used when determining whether an employee should be deemed to be incapable of work by reason of COVID-19, for example, because the employee is self-isolating. Guidance will change frequently, and it is necessary to ensure that those self-isolating in accordance with whatever guidance is provided at the time, are deemed incapable for work and entitled to SSP from day one.
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BEIS issues a bulletin relating to COVID-19 and National Minimum / National Living Wage 24 March 2020
The Department for Business, Energy and Industrial Strategy (BEIS) has issued a bulletin addressing the issue of coronavirus in relation to the National Minimum Wage (NMW) and the National Living Wage (NLW).
The bulletin confirms that, despite current circumstances, employers still have a responsibility to pay at least the NMW / NLW to workers, and that workers cannot forfeit their entitlement to the NMW / NLW. During this period, HMRC will continue to respond to the complaints of workers, and to protect workers’ rights. HMRC aims to provide further education for employers and will still be asking employers to self-correct in appropriate circumstances. The government has received questions relating to situations where workers are temporarily not working or having to work reduced hours, but where the employer wishes to continue paying them. The advice is that, if this is related to coronavirus, businesses investigate whether the Coronavirus Job Retention Scheme is applicable.
For employers considering pay advances or employer loans for their workers, the guidance given is as follows:
• Pay advances – Workers can be paid an advance of pay at any time. These arrangements should be recorded correctly, e.g. on payslips or written agreements between parties, to ensure that workers are paid at least minimum wage rates for any time that they do work. Future deductions from employee pay to recover the previous advance of pay, if clearly recorded, will not reduce a worker’s pay for NMW / NLW purposes. Similarly, the advance or the loan does not count for NMW / NLW purposes in the period in which the money is paid to the worker. The worker still needs to be paid at NMW / NLW or above for the hours they have actually worked, even in pay periods in which they receive a loan or advance. • Employer loans – If an employer loans an amount to a worker, any deductions linked to the repayment of this loan will not reduce the worker’s minimum wage pay. Again, the crucial point is that any loans should be clearly documented. There is guidance available on National Minimum Wage legislation at Gov.UK. The Advisory, Conciliation and Arbitration Service (ACAS) can also be contacted on 0300 123 1100, and they can give advice to both employers and workers. The HMRC Community Forum is another resource that can be used to ask questions in relation to NMW / NLW.
CIPP comment
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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