Leave rules to change in July as government cuts payments –

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Leave rules to change in July as government cuts payments – fr


The government will reduce its contributions on leave from July 1, 2021 (Photo: Getty)

Employers across Britain must pay more for the wages of staff on leave as the government ends payments.

The coronavirus job retention program, which has provided a financial lifeline to millions of workers, has been extended until September 30 this year.

Until June 30, the government will continue to contribute 80% of an employee’s salary – capped at £ 2,500.

But from July 1, the contribution will be reduced to 70% – employers being asked to make up the remaining 10% shortfall.

Kate Palmer, director of human resources advice at Peninsula, a global employment law consultancy, said: “The leave program has been somewhat of a saving grace for many employers as lockout restrictions are in place. square.

“As these restrictions are slowly eased, based on the coronavirus data, employers may find that they no longer need to use the plan, or flexible leave may take center stage. .

“Either way, employers will need to think about how they can adapt to the changes that are coming. “

The reduced government subsidy would apply to salaries capped at £ 2,187.50.

Mr Sunak presented his budget statement to the House of Commons on March 3 this year (Photo: Jessica Taylor / UK Parliament / AFP via Getty Images)

Ms Palmer added: ‘Compensation for employees on leave must remain at a minimum of 80% with a cap of £ 2,500, meaning employers must contribute 10% up to £ 312.50 out of their own pocket. “

And further changes are expected in August, Ms Palmer warned – with contributions to be reduced to 60% of an employee’s salary, capped at £ 1,875.

The reduction will mean bosses have to contribute the remaining 20%, up to £ 625.

Chancellor Rishi Sunak has announced a number of extensions to the employment assistance program, with the September deadline unveiled in his spring budget in March.

A government guidance document, titled Changes to the Coronavirus Job Retention Program from July 2021, warns employers: “As of July 1, 2021, the level of the subsidy will be reduced and you will be asked to contribute towards the cost of the wages of your employees on leave.

“To be eligible for the grant, you must continue to pay your employees on leave 80% of their salary, up to a cap of £ 2,500 per month for the time they spend on leave. “

He adds that bosses can choose to supplement workers’ wages above the 80% total at their own expense.

People are lining up for Covid-19 vaccinations in Bolton, which faces a surge in the number of cases – amid fears that plans to lift all lockdown restrictions may be delayed (Photo: Christopher Furlong / Getty Images)

The upcoming changes come amid growing fears that the government’s plans to free Britain from all lockdown restrictions on June 21 may be delayed.

Face masks and working from home may have to stay beyond that date if cases of the Indian variant of the coronavirus continue to rise.

And this is a hybrid of the Indian and Kent coronavirus variants that was reportedly detected in Vietnam.

The prime minister said on Thursday he “has not seen anything in the data currently” to turn away from the June reopening target – but warned: “But we may have to wait.”

Some experts say the measures should be continued until more people have received two doses of the vaccine.

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