It was confirmed at the Spring Budget 2021 that the Coronavirus Job Retention Scheme (CJRS) will be extended, to now close on 30 September 2021. Individuals previously advised to shield may remain eligible for the CJRS and can be placed on furlough if their employer agrees.
Please note that, at the time of writing, employers must only pay SSP to employees for shielding if they live in Scotland. Shielding has stopped in England, Wales and Northern Ireland.
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Statutory Parental Bereavement Pay (SPBP) and Parental Bereavement Leave (PBL)
Statutory Parental Bereavement Pay guidance published 7 April 2020
Statutory Parental Bereavement Pay (SPBP) and Parental Bereavement Leave (PBL) were introduced at the start of the new tax year, on 6 April 2020. This provides working parents who lose a child under the age of 18, or who suffer a stillbirth after 24 weeks of pregnancy, with a new right to two weeks of leave and, for eligible employees, two weeks of pay.
HMRC and the Department for Business, Energy and Industrial Strategy (BEIS) have released a substantial amount of guidance in relation to the new entitlements, which is discussed below.
Guidance on employee circumstances that affect payment of Statutory Parental Bereavement Pay
There are a multitude of circumstances that would affect the payment of Statutory Parental Bereavement Pay. If an employee receives a backdated pay rise which increases the amount of earnings already paid in the relevant period, employers must recalculate the employee’s Average Weekly Earnings (AWE) and pay any extra SPBP due, if applicable. If they weren’t originally entitled to payment, then their AWE must be recalculated to establish whether or not they are now entitled to the payment.
An employee’s AWE must be recalculated if all of the following apply:
• Their AWE are less than the Lower Earnings Limit (LEL) in force at the end of the relevant week • They received any expense payments or benefits in kind in the relevant period • The expenses or benefits were included in a PAYE settlement agreement Where employees have entered into a salary sacrifice arrangement with their employer, their AWE should be calculated based on the amount of earnings actually paid to them. SPBP cannot be sacrificed and must be paid in its entirety.
Finally, SPBP may be available to foster carers.
Guidance on business changes that affect payment of Statutory Parental Bereavement Pay
If the Transfer of Undertakings (Protection of Employment) Regulations / TUPE Regulations 2006 apply, then the employee’s length of service is unbroken. These regulations apply where:
• An employer takes over a business, part of a business or a service provision • An employer takes on, at the same time, the contracts of employment of transferred employees
The transferor must provide ‘employee liability information’ which details the identities of employees being transferred with the business.
If TUPE regulations do not apply, length of service may continue when:
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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