SARC UPDATE BULLETIN #5 - REDUNDANCY - Updated November 2021

Now the government furlough scheme has ended a number of businesses are cutting staff. Others have closed altogether. Some employees have already been made redundant whilst others may find that their jobs are under threat.

This bulletin provides general advice about your rights if you are facing redundancy. If you live in Southampton and would like advice about your own situation, please contact us using the contact form below.

What payments should I receive?

If you have worked for the same employer for two years you are entitled to a statutory redundancy payment.

You can work out what you are entitled to using this calculator:

https://www.gov.uk/calculate-your-redundancy-pay

You will be entitled to notice pay (which often depends on your length of service) and pay for any holiday that you have earned but which you have not taken at the date of termination of your employment.

Will my redundancy pay, notice pay and holiday be calculated on my furloughed pay or my normal basic pay?

The government has confirmed that all payments must be based on your normal wages, not on your furlough pay (which will often be lower).

Will I still receive these payments if my employer has become insolvent?

If your employer goes into liquidation or administration you should be able to get your redundancy pay, outstanding wages, notice pay and holiday pay from the government (although note that some limits on the amount of wages, notice pay and holiday pay may apply).

What if my employer made me redundant while I was still furloughed?

Yes but you had the same rights as if you were at work. See below for further details about what these rights involve.

Can my employer make me redundant while I am off sick or ‘shielding’?

You can be made redundant even while you are absent from work for a health reason. However your employer should still act reasonably. In some cases, making someone who is off work because of poor health could amount to discrimination. If you feel that you are in this situation it would be a good idea to seek some advice as soon as possible.

Can my employer make me redundant while I am on maternity leave or another type of family leave?

Yes if a genuine redundancy situation has arisen. If an employer decides to make you redundant because you are pregnant or have gone on maternity leave, that would be discrimination. Women on maternity leave also have preference for alternative jobs in some situations.

Employees who are on adoption leave, paternity leave or parental leave also have legal protections.

What must my employer do before making me redundant?

If you are a union member, or if at least 20 people are being made redundant, your employer should consult with the workforce as a whole before deciding upon redundancies. But your employer should also warn you personally that your job is under threat and give you a chance to suggest alternatives such as reduced hours, reduced pay, job shares etc.

If not all staff are being made redundant, your employer must operate a fair and transparent selection process.

Finally your employer should consider whether there are any alternative jobs that could be offered to you as an alternative to redundancy.

What if I feel that my redundancy is not fair?

Begin by making an appeal to your employer. If you have a contract or employment handbook, check where your appeal should be sent. Otherwise put your appeal in writing, and send it by post or email. State clearly that you want to appeal against your dismissal. For example:

‘Dear [name of manager or HR manager]

I wish to appeal against the decision to make me redundant. The reasons why I am appealing are as follows: ‘

Then set out all the reasons why you do not think that your redundancy is reasonable.

If your appeal is not successful, you may be able to bring a claim for unfair dismissal against your employer.

Can I make a claim for unfair dismissal?

You can bring a claim for unfair dismissal in a redundancy situation if you have been working for the same employer for at least two years.

In some cases you don’t need two years’ service, for example if you believe that you have been selected for redundancy because you are a whistleblower, because you became pregnant, because of trade union activity or for a health and safety reason.

What are the time limits for a claim for unfair dismissal?

You have three months to start the process. Within this period you should contact ACAS to start what is known as ‘early conciliation’. Do this even if your employer has not dealt with your appeal within the three months.

You can start the early conciliation process by completing the form here:

https://tell.acas.org.uk/notification-form#no-back

ACAS can contact your employer on your behalf to see if your complaint can be settled without going to a tribunal.

If the claim can’t be settled, ACAS will issue an Early Conciliation Certificate. You need the number on this certificate before you can make a claim to the employment tribunal.

Once you have your Early Conciliation certificate, you should act quickly if you want to make a claim to the employment tribunal. Depending on what has happened you will have a month at most to bring your claim.

Where can I get further advice?

If you are a trade union member, you should contact your union representative for advice and assistance.

SARC can provide further advice to those who live in the Southampton area. You can contact us here:

https://www.sarc.org.uk/web-contact-form

SARC UPDATE BULLETIN #4 – FURLOUGH – JULY 2020

The rules on the government’s furlough scheme (the coronavirus job retention scheme) are changing.

From 1 July 2020, a part-time furlough arrangement is possible. Employees can return to work for part of the working week. Your employer must pay you for the hours you work. The government will pay the rest of your wages for hours not worked, up to 80% of your wages or £2500 per month (whichever is the lower).

The amount that the government will contribute to wages will gradually reduce from 1 August until the scheme ends, currently fixed at 31 October 2020.

The government has been paying employer national insurance contributions and pension contributions since the furlough scheme started. From 1 August your employer will start paying these sums.

The level of government contribution to wages will reduce as the scheme draws to a close. From 1 September the government will pay 70% of wages and your employer will have to top this up to 80% if you remain furloughed.

From 1 October the government contribution goes down to 60%.

As before, employers can top wages up to 100% if they choose to do so, but they are not obliged.

The new rules give employers the option of easing staff back into the workforce on a part time basis. This and the declining government contribution over three months means that also that employers are not faced with a sudden sharp increase in their wage bill, which could trigger redundancies.

Here are some of the most common questions that might arise at this time.

I have been on furlough but my employer now says that he needs me back at work. Do I have to go?

Yes your employer can bring furlough to an end and demand that you return to work provided that they are going to meet your full wages.

What if I am worried about returning to work for health reasons?

If you are shielding, or are required to self-isolate, you should be entitled to statutory sick pay.

If you do not fall into one of these categories, your employer has a duty to provide you with a safe place of work and should have carried out a risk assessment prior to asking you to return, which you are entitled to see. There is also government guidance applicable to each sector of the workforce.

If you have a health condition which might make you more vulnerable to coronavirus, it may be possible for you to reach agreement with your employer about returning to work. For example, you might ask to continue working from home, to alter your start or finish times, to obtain additional protection (such as screens) or to move to a different office.

If your health condition qualifies as a disability because it is significant and long term, your employer will have a duty to make reasonable adjustments to your working arrangements so that you are not placed at a disadvantage. This may involve putting additional protections in place for you within your workplace.

I am not able to return to work as I have no childcare at present. What can I do?

The government continues to advise that staff should work from home wherever possible and your employer may be happy for you to carry on working from home until your children return to school.

If it is not possible for your job to be done at home and your employer now wants you back (for example, because they are re-opening) you may be able to use annual leave or parental leave to stay off work. Dependant leave can also apply although this is normally used for short periods of absence due to childcare problems.

Any employee can make an application to work flexibly on a permanent basis. This could involve reduced hours, different start and finish times, or home working as well as a wide range of other working arrangements. Ask your employer if they have a policy on flexible working and how you should make such an application.

What if my employer wants me to stay on furlough but return part time?

Your employer is required to reach agreement with you over the hours you will work, and you will still get at least 80% of your pay up to £2500 per month.

What if my employer says that I can have my job back but only at a reduced wage or on fewer hours?

Your employer can’t impose this upon you. A wage cut or reduction in hours can only be implemented with your agreement.

Can my employer make me redundant while I am furloughed?

Yes. But they should consult with you and consider alternative employment. You will be entitled to notice pay and (if you have worked for two years or more) a redundancy payment.

My employer has told me that I am being made redundant but I don’t think the selection has been fair. What can I do?

If you have been employed for at least two years (including any period of furlough) you will have the right to bring a claim for unfair dismissal if you don’t think your employer is acting reasonably. Even if you do not have two years’ service, it is unlawful for your employer to discriminate against you on grounds of sex, race, religion, sexual orientation, maternity, age or disability.

Where can I go to for more help?

If you are a member of a union, they will be a good source of support and advice for help in sorting out work issues related to the pandemic.

SARC can provide advice and assistance on benefits and employment law issues in the Southampton area.

You can use our contact form here: https://www.sarc.org.uk/web-contact-form

SARC Bulletin #3: Updates on welfare benefits - 04.05.2020 

The following is a list of the main changes to social security as a direct result of the current COVID-19 situation.

Universal Credit

The rates of personal allowance for Universal Credit have been increased by the equivalent of £20 per week over and above the inflation based increase which had been scheduled anyway. This £20 increase is a temporary measure for the current tax year April 20 – April 21.

Self employed people will for a temporary period have their Universal Credit entitlement based upon their actual earnings rather than an assumed minimum (the so-called minimum income floor)

When claiming Universal Credit the requirement to phone the DWP to book an initial interview has been suspended – the DWP will contact you by phone or via your online journal to arrange verification of identity etc. Those with a Government Gateway account (typically people who have to self-assess for income tax) can verify their identity via that account.

Sanctions suspended

Work search requirements for people claiming Universal Credit (or Jobseeker’s Allowance) have been waived until 30 June

Medical assessments

There are currently no face-to-face assessment for ESA, Universal Credit, Personal Independence Payment

PIP, DLA, AA existing awards

Any award due to end in the next three months has been automatically extended for a six months, meaning that a renewal claim will not be required in the meantime.

Appeals

There are currently no in-person hearings. If it is possible, some telephone hearings are being arranged – however, of course these might not be suitable for a number of people depending on the nature of their illness or disability. In these cases it is likely that hearings will not go ahead until later.

The Tribunal Service have decided that in some cases they may feel they have enough information to make a positive decision in appeals, and they in these cases they will go ahead and make the decision. However, please note that this doesn't always lead to a correct decision – for example, someone might be arguing they are entitled to a higher level of benefit than the Tribunal awards “on paper”.

If you are having any problems with an appeal about benefits, and live in Southampton, please contact us for specialist support. If we are already helping with your appeal, everything should be in hand.

Other

Overpayment recovery of all DWP benefits, and Housing Benefit, has been suspended until 30 June. This includes deductions from benefit, attachment to earnings orders, and action by private debt collection agencies appointed by the DWP or local authorities.

Increased rates of Working Tax Credit

The basic element of Working Tax Credit has been increased by £1,045 to £3,040 from 6 April 2020 until 5 April 2021.

The amount a claimant or household will benefit from will depend on their circumstances, including their level of household income. The Government has estimated that the increase could mean up to an extra £20 each week.

If this change applies to you, it will happen automatically – you do not need to do anything.

The Government is also uprating Child Benefit, other tax credits rates and thresholds, and Guardian’s Allowance by 1.7% with effect from 6 April 2020.

SARC Opening

We continue to be open and working remotely during this period for advice on all aspects of welfare benefits and employment law. Please contact us via the temporary phone number on our website.

SARC Bulletin #2.1: Furlough Pay - 06.04.2020

WHAT IS FURLOUGH PAY AND HOW DO I CLAIM IT?

This bulletin is about the Government’s Coronavirus Job Retention Scheme – how it works and who can benefit.  The scheme is not up and running yet but it is intended to start by the end of April.

What is Furlough Pay?

The government has launched a new scheme that will be offered to employers whose businesses have been badly hit by the coronavirus restrictions.

Under this scheme the government is offering to meet 80% of the wages of staff who might otherwise lose their jobs due to a downturn in work.  The aim is to encourage businesses to keep their staff on the payroll rather than make them redundant.

If your employer decides to participate the government will give your employer a grant to pay up to 80% of the wages of employees who have been furloughed, plus employers national insurance and pension contributions.

Benefits under the scheme may apply if an employee has agreed with their employer that they will be put ‘on furlough’.  That means that you will stay on the payroll even if there is no work for you to do.  It is an alternative to redundancy.

Can I apply for Furlough Pay?

No. it is up to your employer to apply to the government to take part in the scheme.  The government plans for the scheme to be up and running by the end of April.

Can my employer insist that I go ‘on furlough’?

In most cases your employer will have to obtain your agreement to a furlough arrangement.  In some cases they will be allowed to do this under your contract of employment.  For example, your contract might contain a clause permitting your employer to lay you off.

What does it mean if I am ‘on furlough’?

You will not have to go to work – in fact you are not permitted to do any work for your employer. You can still receive training and you can volunteer for the NHS or for someone else.

What if I don’t want to be furloughed?

You can refuse to be placed on furlough.  However if your employer asks you to be furloughed, think carefully about it as the alternative may be that your employer has to bring your employment to an end, if there is not enough work. In some cases, your employer will have the right to send you home and not pay you for a few weeks – that is called being ‘laid off’.

What will be paid?

The government will pay 80% of your wages, plus employer national insurance contributions and pension auto-enrolment contributions.  The wages paid are subject to a cap of £2500 per month.

Will I get my full pay?

Your employer can top up the 80% paid by the government to 100% but it does not have to.

The 80% maximum applies even if this would bring you below national minimum wage rates.

What if I have been made redundant?

If you were made redundant before 19th March 2020 it will be possible for your employer to re-hire you if they agree to this, and you can then be placed on furlough.

My employer has reduced my hours, can I use furlough pay to top up my wages?

No. Being on furlough means that you are not doing any work for your employer.  If you carry on working, you will not qualify for furlough pay.  In some cases you may be offered a choice between working shorter hours or being furloughed.

Can I do other things while I am on furlough?

You can’t work for your employer while on furlough. You are not prevented from volunteering or undergoing training.

If you already have a second job, you can carry on with this (or receive furlough pay from your second employer).  You can also take other, new work from a second employer and still receive furlough pay from your new employer.

I started my job very recently – can I be placed on furlough?

Yes provided you were on payroll on 19 March 2020.

I am on a zero hours contract, will I get furlough pay?

The scheme applies to zero hours and temporary workers provided they were on payroll on 28 February 2020 and provided your employer is taking part.  Your wages will be calculated on the basis of your average earnings.

Are agency workers entitled to furlough pay?

Yes you can be placed on furlough by the agency or umbrella organisation that pays you.

Can I go on furlough for a week and go back to work?

No. You must be on furlough for at least three weeks.  Some employers may decide to rotate staff on furlough and at work.

How long can I stay on furlough pay?

Currently the scheme is due to last for three months.

I am currently self-isolating at home because I have coronavirus symptoms, or a member of my family has symptoms. Can I be placed on furlough?

While you are self-isolating you should be eligible for Statutory Sick Pay if you qualify for this.  When your period of self-isolation ends, you can be furloughed.  Employees who are shielding can be furloughed.

I have already been laid off, can I get furlough pay?

Yes the government plans to backdate the scheme to 1 March 2020.  But you must have been on payroll on 28 February 2020.

I am on maternity/paternity/parental/adoption leave, can I be furloughed?

You will remain entitled to Statutory Maternity Pay, Paternity Pay, Shared Parental Pay or Adoption Pay (although if your employer ‘tops up’ the statutory minimum amounts, furlough pay can cover this).

I work in the public sector, am I covered?

This scheme is mainly intended to apply to the private sector but check with your employer what they plan to do.

I am self-employed can I claim furlough pay?

The government has introduced a separate scheme for self employed workers under which you may be able to claim a grant worth 80% of your trading profits up to a maximum of £2500 for the next three months. Note that:

·         Your trading profits must be less than £50,000

·         You must have traded in the tax year 2019/20

·         You must have submitted a tax return for the year 2018/19 (or complete it prior to 23 April 2020)

·         You are still trading

·         You have lost money due to COVID-19

HMRC will contact you if you are eligible to apply and invite you to apply online.

Be very alert for scams.  If you receive an email which asks you to click on a link, don’t do it.  Be wary of someone contacting you telling you they are from the HMRC and don’t disclose name, credit card or bank details.

SARC Bulletin #1 - 30.03.2020

The information coming out from the Government is very fluid so further bulletins will be issued at regular intervals. We will try to give guidance based on frequently asked questions from the residents and service providers accessing our service. However there is no substitute for the tailored individual telephone and email advice we can still offer.

Furlough Pay

A scheme introduced by the Government where employees will refrain from undertaking any work for their employer and the Government will pay 80% of the employer costs with a cap of up to £2500 per month. This is a variation to an employee’’s contract and they must authorise this change to their contract. An employer can choose to top up pay to pay 100% of normal salary BUT the 80% is the minimum that employees will receive. Employees do have the right to reject Furlough pay but they should seek advice as their employment could become very precarious. The link below is being updated almost daily and is the best source of up to date and accurate information.

https://www.gov.uk/government/news/further-details-of-coronavirus-job-retention-scheme-announced

Statutory Sick Pay

Staff who are self-isolating because they have coronavirus symptoms or are living with someone who has had coronavirus symptoms should be able to get statutory sick pay.  If required they can obtain an ‘isolation note’ online by using the following link:

https://111.nhs.uk/isolation-note/

Universal Credit

We are aware many people are having issues trying to start claims on-line. An online application is the default vehicle. However telephone applications can be made if there is good reason why online is not appropriate e.g.

‘’You cannot use digital services at all, this might be due to disability or your circumstances.’’

The Chancellor announced that Universal credit will increase by £20 per week for claimants. This will become effective from the 7th April, and does not affect any annual uprating already agreed. It remains unclear whether or not this additional amount will apply to claimants under 25, however.

People should still have access to Contribution based Employment and Support Allowance or ‘New style ESA’’ our advisers can discuss eligibility with constituents, residents and clients. We can undertake telephone benefit checks. People should not forget that Council Tax support needs to be claimed independently from Universal Credit and from the Local Authority.  

There are serious concerns that the verification process will mean delays in getting payments and advances from day one. The claim will start from the day the application is completed online or by telephone. Delayed Identity and verification processing with Job coaches is an issue we are raising with local DWP representatives.

Vulnerable people, Work and COVID 19

Originally the advice was very clear in that vulnerable people should people should be ‘Shielded’ and refrain from attending workplaces. We are concerned the present position is not so clear and definitive. The Government advice seems to be less instructional to employers  now. Employers are encouraged to ‘support them to work from home and self-isolate’. We have had enquiries where employers have refused to pay if these people do not attend work. So again, these people need individual advice and support, we are presently thinking these employees or workers should get an online ‘isolation fit note’ to justify their absence from work and qualify for sick pay.  The guidance may change this week as it seems at odds with wider guidance for vulnerable groups to self-isolate, but this is the present ACAS advice.

 https://www.acas.org.uk/coronavirus/vulnerable-people-and-high-risk.

The situation is rather different from those identified by the government as being at high risk if they catch coronavirus.  Such people should have had a letter from the government advising them that they should ‘shield’ themselves for 12 weeks which means not going out of their house, socially distancing themselves from members of their own household and not attending any gatherings.There is no definitive instruction from the Government just guidance and good practice to support vulnerable groups and those who need to self-isolate due to an existing condition or age.

COVID-19 VIRUS NEW SARC OPERATING ARRANGEMENTS FROM MONDAY 23RD MARCH

In the light of current advice about Coronavirus and in order to ensure the continuity of our service to clients, SARC has taken the decision to close its Woolston Office and outreach sessions will full effect from Monday 23rd March.

Those who depend on us can be assured that this does not mean that SARC has closed or that we have stopped our support to clients, but we have to offer this support in a new way. 

We operate with a very small, highly skilled, staff team and believe that working in and travelling to an environment where there is a heightened risk of exposure to the virus would have quickly placed us in a position where we could not operate. We have taken into account the guidance on social distancing.

Therefore, proactively to ensure continuity of service, we are moving to remote working which will mean that although we will not for the time being offer face to face appointments, we will be able to offer our full range of advice and support by telephone or by e mail.

At this point it is not possible to predict what effect the progress of the coronavirus will have on the operation of the tribunal and social security system, wherever possible we will continue to offer representation to clients who need it. The Tribunal are considering remote proceedings for example such as Sykpe or telephone hearings to ensure the continuation of access to justice. We will keep in touch with our existing appeal case clients and can still work on their cases with them.

The situation is obviously changing rapidly and SARC will need to adapt equally rapidly to continue to support those who depend on our services by matching our capacity (which may change over time) to client needs in the most effective way possible.

We will regularly review the advice we offer on access to our service and keep arrangements under review so that we can adapt our ability to respond to client needs and return to normal working as soon as it is sensible to do so.

If you need our help to get into contact with SARC during the operation of these temporary arrangements, please telephone us on 07942 647990 or contact us by e mail on admin@sarc.org.uk