DSM Chartered Accountants – News on payroll guidance for employers & employees, 18th March 2020
If you have symptoms of the Covid-19 virus you have been advised by the UK Government to stay at home for 14 days if you live with others and for 7 days if living by yourself. Always check NHS websites for the latest medical advice on symptoms and self-isolation.
Employees who are ill, or are in a self-isolating household that are ill, are entitled to be paid a minimum of Statutory Sick Pay (SSP) if earning over £118 per week for at least the past 8 weeks. SSP is £94.25 per week for up to 28 weeks, increasing to £95.85 per week from 6 April 2020. Under emergency rules employees will be paid SSP from day 1 of sickness, without the usual ‘SSP waiting days’. Employees may also be entitled to employer sick pay but always check with your employer and you must inform your employer that you are not able to attend work and the reasons why. If you are off sick for any other reason normal SSP rules apply.
Employees are NOT entitled to SSP and employer sick pay if they self-isolate without being ill unless they have a sick note. Some employers will allow you to work from home while in self-isolation, if you can do your job from home. Some employers may allow you to use paid holiday entitlement during self-isolation or if they are temporarily closing your place of work. Employees accumulate holiday pay whilst taking time off sick.
Employers will be able to claim back from HMRC up to 2 weeks of SSP paid to employees for Covid-19. This began on 13th March, but HMRC still need to publish how to claim this back.
Employees laid-off work temporarily are entitled to a maximum of £29 per day for 5 days in any 3 month period – so a maximum of £145 payable by the employer. If you earn less than this you will get your normal daily rate. If you work part-time your entitlement is worked out proportionally. Employees are entitled to redundancy pay if laid off for 4 weeks in a row or for 6 weeks in a 13 week period.
We will continue posting updates daily as they come through from Government.