Holiday Carry Over & other Seasonal Updates
 
Sentient Group Ltd
 
Info Update 2020/13                                                         Issue Date: 01/04/2020
 
COVID CARRY OVER – and other SEASONAL UPDATES
 
 
CORONAVIRUS HOLIDAY ENTITLEMENT CARRY OVER
The Working Time (Coronavirus) (Amendment) Regulations 2020 came into effect on 26th March 2020. These Regulations relate to the carryover of holiday entitlement.

Firstly, a reminder…
 
Entitlement
The EU Directive provides all workers with an entitlement to 4 weeks’ paid annual leave. (“Directive Entitlement”).

 
The UK increased the entitlement by 1.6 weeks (“UK Supplemental Entitlement”) so that workers in the UK were entitled to a minimum of 5.6 weeks’ paid leave in each holiday year (“Minimum Entitlement”).
 
Employers can offer more than the Minimum Entitlement as a contractual benefit (“Contractual Entitlement”).
 
Statutory (bank / public) holidays can be included within the Minimum Entitlement. In otherwords, bank / public holidays do not need to be in addition to the above entitlements.
 
What happens if a Worker does not take their leave within the holiday year?
Generally, the annual leave entitlement will be forfeit. However, there are some exceptions to this. See Information Update 2019/11.

 
So, what do these new Regulations do?
In a nutshell, they amend the Working Time Regulations 1998 to create an exemption relating specifically to the coronavirus outbreak. What this means is that if a worker has been unable to take their Directive Entitlement (the 4 weeks’ entitlement) due to the Coronavirus, then the holiday accrued but untaken at the end of the holiday year must carry-forward and be taken within the following two leave years.

 
The Regulations have also been amended to provide that where a worker’s employment terminates, the employee is entitled to a payment in lieu of any leave accrued but not taken in the current leave year AND also any leave that carried forward under these new Regulations and remains untaken on the date of termination. 

STATUTORY SICK PAY - UPDATE
The Statutory Sick Pay (Coronavirus) (Suspension of Waiting Days and General Amendment) Regulations 2020 has now been published.

As we all know, statutory sick pay (SSP) is not payable for the first three qualifying days of a period of entitlement to statutory sick pay. These days are known as “waiting days”. These Regulations disapplies the waiting days where an employee:
  • is incapable of doing the work the employee can reasonably be expected to do under the employee’s contract of service, or
  • where the employee is deemed to be incapable,
because of coronavirus.

These Regulations apply retrospectively from 13th March 2020.

These Regulations specifies when a person is deemed to be incapable of work because the person is staying at home. This includes persons with symptoms of coronavirus staying at home for 7 days and persons living in the household of a person with symptoms of coronavirus staying at home for 14 days.

What this means is that SSP is payable from the first day of absence where the absence is because of coronavirus. If the absence is for any other reason, such as a broken arm or broken leg, the three waiting days still apply and SSP is not payable during those three waiting days.

These Regulations do not refer to the announcement that businesses with less than 250 employees as at 28 February 2020, will be able to recover up to 14 days SSP from the government; we are still on the lookout for the Regulations that put this announcement into effect.
 
FURLOUGH AND TRAINING
Don’t forget, that to be able to claim back the 80% whilst employees are on Furlough they must not do any work at all. However there is an exception to that if they take the opportunity to complete training. This can include online learning which is the perfect process where social distancing is essential. Please check out our on-line learning facility here. If you have multiple needs in this then do contact us for discounted prices.

 
NEW STATUTORY RATES
National Living Wage / National Minimum Wage
One question regularly asked is whether the Government have delayed the implementation of the increase to the National Living Wage/National Minimum Wage, in light of the Coronavirus. Whilst we have seen a number of organisations advocating for such a delay, there has been no announcement by Government, and therefore we believe the increase will take effect, as scheduled, which are as set out below:
 
 
 
The advice and comment in this update is not meant to be an authoritative statement of the law. The articles and summaries should not be applied to any specific set of facts and circumstances without seeking further advice. Whilst every care is taken to ensure that the content is correct Sentient cannot accept responsibility for the accuracy of statements made nor the result of any actions taken by individuals after reading such.
 
 
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Wharfebank Mills
Ilkley Road
Otley
LS21 3JP
03456 446006
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