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The licensing scheme open today for applications from companies needing to pay 11 million who are unable to work due to the coronavirus.
The government Coronavirus job retention scheme can pay employees up to £ 2,500 per month. Here you will find everything you need to know about the scheme, including how to request it.
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What is the government licensing scheme?
Simply put, if your employer is forced to temporarily shut down due to the coronavirus, you can use an online portal to claim 80 percent of your salary, which you will then pay to employees.
However, claims are capped at £ 2,500 per month for each employee, so if you generally earn much more than that, you will see a further drop in wages.
Payments can roll back until March 1, 2020, and must be for a minimum of three weeks.
Once your company has submitted your application, you will likely not receive money until after the end of April.
The government website for requests for the scheme was opened today.
The plan was due to end on May 31, but the government announced on April 17 that it would be extended for one month until the end of June 2020 and could be extended again if necessary.
Your company can top up the remaining money that they would generally pay you, but most companies are taking a big hit and have chosen not to.
Bosses can also claim national employer insurance contributions and minimum automatic enrollment pension contributions on top.
The Coronavirus work retention scheme is not supposed to be used for short-term illness and there is a minimum period of three weeks.
When will license payments be made?
Although the license permit may be earlier than March 1, the portal employers must use to register their license status was launched at 8 am on April 20.
That means that you are unlikely to see money until after the end of April, once the system is fully operational.
Meanwhile, some employers may choose to pay staff and then claim the money from the government, but they don’t have to.
Which employees can receive a leave payment?
Originally, individuals were required to be employed on or before February 28, 2020 to qualify for the license.
But the government has extended this to all employees before March 19, the day before the plan was announced.
Employees with fixed-term contracts can also be suspended, and their contracts can be renewed or extended during the leave period.
If your contract ends because it is not extended or renewed, your employer can no longer claim it.
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If you were granted a leave without pay, you can still be suspended as long as your leave begins after March 19.
Employees who were employed as of February 28 and on payroll and were laid off or stopped working for the employer after that may also qualify if their employer re-employs them and leaves them unlicensed, but they do not have to do this.
Trainees can be suspended in the same way as other employees and can continue training while suspended.
But companies must pay apprentices at least the minimum apprenticeship wage, the national minimum wage, or the national minimum wage for all the time they spend training.
This means that bosses must cover any deficit between the 80 percent that the plan will pay and the minimum wage.
Who can use the government license scheme?
Any UK organization with employees can apply, including companies, charities, recruitment agencies and public authorities.
Public sector employers are not expected to use the scheme, since most employees still provide essential services.
If you receive public funds to pay staff, you are expected to continue using these funds and not unlicensed employees.
People can suspend employees, like babysitters, as long as they are paid through PAYE and are on their payroll on or before March 19, 2020.
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How do I claim payment for a government license?
You cannot apply, your job must do it for you. To access the scheme, your employer must comply with the following:
- Appoint employees who are unable to do their jobs due to government-implemented coronavirus measures
- Notify those employees of their new “leave” status in writing and maintain communications for up to five years.
- Sending information to HMRC about employees without permission to establish a reimbursement system
- You will have to calculate how much you can claim through the scheme
What do I need before I can be considered for a claim?
You must have:
Any entity with a UK payroll can apply, including companies, charities, recruitment agencies and public authorities.
Can I receive a license fee if I am on sick leave?
If you get sick while you are without permission, you can still be paid the legal sick pay.
But in this scenario, employers can no longer claim the suspended salary.
Therefore, it is up to employers to decide whether to transfer these employees to Legal Sick Pay or keep them unlicensed, at their termination rate.
Can I be suspended if I have more than one job?
If you have more than one employer, then you can be fired for any and all of your jobs.
Each job is independent and the £ 2,500 limit applies specifically to each employer.
Therefore, if required by two employers, you are eligible for government aid in the amount of up to £ 5,000 per month.
You can also continue working on one job while suspended on another.
Can I do volunteer work or training while on leave?
A fired worker can participate in volunteer work or training as long as it does not generate income for his employer.
If a suspended worker is required to complete an online training course, then your employer must pay you for the hours spent on the training.
Can I be suspended if I am on maternity leave?
Employees in the government’s 39 weeks of Mandatory Mandatory Maternity Payment (SMP) will still be paid by their employer.
This covers six weeks paid at 90 percent of weekly earnings, followed by £ 151.20 or 90 percent of your average weekly earnings (whichever is less) for the next 33 weeks.
Everything your company pays you above this amount can be covered by the government licensing plan of up to £ 2,500 per month.
Can I be suspended if I left my job because of a new job that failed?
The government has clarified that companies can rehire and suspend old employees who left their jobs for a new one after February 29, which failed due to the coronavirus.
But you must have stopped working for your employer as of February 28, 2020, even if you don’t return to work until after March 19.
Employers can also rehire anybody who has been laid off as of February 28.
Companies make the final decision in this regard and are not required to rehire any employee.
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