British companies must pay part of salary for staff on leave from August | Politics


Companies will have to pay at least a fifth of the wages of employees on leave as of August, we learned.

Chancellor Rishi Sunak is expected to announce next week that employers will have to start contributing, as the lockout is eased further, according to the Times.

Employers will be allowed to take back workers on part-time leave, and all employers using the coronavirus retention program will be required to make payments, even if they are closed, the document said.

The Treasury said it “does not stray” from the story, which is said to have been told by officials, and has not denied its accuracy.

A source in the Treasury told The Times, “We have two months of support left, and afterwards the government will help pay people’s wages, but it is fair to everyone that businesses help get them back to work.” “

Sunak said the leave plan would be in place until at least October. Companies are asked to start sharing costs from the beginning of August, which could indeed force many employers to assess whether certain jobs remain viable.

The Financial Times quoted a business executive this month as saying, “If the leave plan allows for jobs that don’t really exist, it’s better to free people from the workforce to start looking for other work.” . “

The Treasury would order employers to cover between 20% and 30% of an employee’s salary, and companies will also pay their national insurance contributions, which account for about 5% of the salary.

The leave scheme pays 80% of a worker’s salary up to £ 2,500 per month and supports around 7.5 million jobs, which represents around a third of the private sector workforce . The Office for Budget Responsibility said the program could cost up to £ 80 billion.

The Treasury was criticized this month after an unnamed official said the nation was “hooked” on the program. The plan should be closed to new applicants before the changes, to reduce the risk of fraud.

As of May 12, HMRC had received 795 reports of potential concerns from the public that employers suspected of abusing the system. Although these have not yet been substantiated, the HMRC has stated that it will pursue criminal proceedings in serious cases.

“You may not be paid what you are entitled to, they may ask you to work while you are on leave, or they may have claimed times when you worked,” said an HMRC spokesperson. .

“We are not trying to catch people. If it turns out that this is a real mistake, we will help to correct it, and if it is more serious, we will intervene. “

Data released on Friday shows that retail sales fell 18.1% in April as hundreds of thousands of businesses were forced to shut down to fight the coronavirus.


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