FAQs: Legal aspects of the pandemic explained by Meriel Schindler, Withers LLP
FAQs regarding the legal aspects of the pandemic, as explained by Meriel Schindler, Withers LLP
If you have been furloughed, is there a chance you might not have a job to go back to? Yes that is sadly a possibility – employers are not precluded from making people redundant if once the scheme ends in 3 months' time there is still not enough work for that person to do
If the way of working is changing, working from home, how might it affect contracts - will we need change in contracts? All the normal rules of employment law apply so unless there is a clear clause in the contract allowing the employer to reduce salary (which is unlikely), in most cases the employer will need the employee's consent to put them on furlough as FL represents a temporary variation to their contracts but in the current circumstances most employees are agreeing to part time/reduced hours working or furlough as the alternative is redundancy.
Do employers have a legal responsibility for health and wellbeing? Yes both at common law and under the health and safety at work act 1974 – the latter stated ' It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees' so this covers also working at home and the employer should as far as possible make enquiries as the the safety and security of home working arrangements.
I’d like to understand options for limited companies with only one director who pays themselves on a low or infrequent salary and dividends? Sounds like you may be covered by the coronavirus job retention scheme – however it may not benefit you very much as the calculation of the grant is based on your average salary over previous 12 months
Also, is there an official process to furlough yourself? It should be documented if you are furloughing yourself from your own company- both as a board minute and in the form of a furlough agreement
If you cannot afford to pay yourself your next salary due to the impact of Covid-19, do you still generate a payslip for yourself with a salary of £0? I am not an expert on payroll issues but I think the answer to that is yes