From September, the government will pay only 70% of your furloughed workers’ wages. Read our latest blog on how to meet new furlough rules.
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How to meet new furlough rules
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HR management outsourcing is when a team of experts manage your HR by looking after your contracts, policies, and procedures.
These are the HR essentials every business needs. Without them, your staff could bring successful claims against you, you could lose thousands in legal fines, and even face prosecution. Never underestimate the benefits of HR support for a small business.
We have years of experience in providing HR for SMEs and HR management outsourcing. Contact us to see how we can support you, including HR advice for small businesses - as well as medium and large companies.
Good human resource management is having round the clock support when you need it the most.
Whenever there’s a staff challenge or an important legal update, you just pick up the phone and get the help you need – no matter the time or place.
The main benefits of HR outsourcing are:
- Cost saving: Reduces the expenses for such things are hiring, training and employing an in-house HR team.
- Time saving: Saves time for staff members away from HR tasks.
- Improves expertise and compliance: Provides ongoing advice and support to ensure complete and total compliance.
- Reduces risk: Reduces the risk of any payroll and compliance failures.
Outsourcing HR is cheaper than hiring internal staff and saves you money overall when it comes to your HR service. Plus, you avoid making mistakes that could cost you heavily in claims and legal fines down the line. Every business should consider HR support as a way to avoid claims.
Peninsula is one of the leading HR outsourcing services in the UK, and by working with us you get access to our HR advisory service. Contact us for your outsourced SME HR today.
The key functions of HR outsourcing services are:
- Payroll and benefits: Helps a business to manage employee wages, tax processing, and employee enrolment.
- Recruitment and onboarding: Helps with job descriptions, sourcing new candidates, interviewing, and ensuring a smooth onboarding process.
- Compliance with employment law: Helps to ensure compliance with ever-changing employment legislation.
- Employee relations: Helps to manage grievance and disciplinary procedures, and any ongoing support that's required.
- HR admin: Helps to handle and manage daily tasks, such as employee records, sorting employment contracts, and processing any leave requests.
- Training and development: Helps to create and deliver staff training programs to improve employees' skills.
The Department for Business and Trade has published its latest report on National Minimum Wage (NMW) and National Living Wage (NLW) compliance and enforcement for the 2024/25 financial year.
The Government has published its latest “naming and shaming” list of employers and businesses which have failed to pay their workers the National Minimum Wage (NMW).
The Department of Health and Social Care (DHSC) has launched a consultation on fair pay agreements in adult social care in England. The consultation is seeking views from individuals and organisations on how to establish the best way to collectively agree a fair pay agreement.
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Pay & Benefits
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From 1st September, the government’s furlough scheme is set to transform. And the coming changes could hit your wallet hard—or hand you a hefty cash bonus.
Here’s what you need to know to prepare your business for the new rules.
The changes so far...
In March, the government set up the Job Retention Scheme to reduce redundancies during the COVID-19 outbreak.
And until the end of June, the scheme’s rules stayed the same. The government paid 80% of each furloughed worker’s wages (up to £2,500 per month), plus employer National Insurance and pension contributions.
Then, from July, employers could bring workers back part-time (learn more in Peninsula’s ). And August saw businesses begin paying employer National Insurance and pension contributions for employees still on furlough.
But now the government has cut the grants further. From 1st September, you need to start paying towards your furloughed workers’ wages. Even more so by October.
Let’s look at the specific changes that affect you.
The rules arriving this autumn
From September, the government will pay only 70% of your furloughed workers’ wages (up to £2,187.50 per month).
You, the employer, will then need to top up your workers’ wages so they receive at least 80% of their normal pay (up to £2,500). You’ll also need to pay employer National Insurance and pension contributions for the hours the employees are on furlough.
Then, in October, the government will cut its wage contribution to 60% (to a cap of £1,875). Again, you’ll need to top this up to 80% of your workers’ normal pay, plus pay employer National Insurance and pension contributions.
So far, the Chancellor of the Exchequer has ruled out extending the furlough scheme for any longer. From 1st November, financial support will stop, and you might need to make some tough cost-cutting choices.
But there’s a new incentive that may make you want to retain your workers…
£1,000 for every furloughed employee
The government has set up a system that rewards businesses who avoid making redundancies.
It’s called the Job Retention Bonus, and sees employers receive a £1,000 cash payment for each previously furloughed worker who you continue to employ after furlough ends.
We’re expecting more news on the incentive later this month. But for now, there are a handful of terms you must meet to be able to claim the bonus:
You need to continuously employ each worker until at least the end of January 2021.
Your worker/s must earn at least £520 per month from November.
They need to have up-to-date Real Time Information (RTI) records until the end of January.
They cannot be working their notice period.
(Peninsula’s free article on the Job Retention Bonus tells you all you need to know to meet the criteria and unlock your cash rewards. .)
Your next steps
With the new furlough rules now in force, you’ve got some big decisions to make in a short space of time.
Will your business bounce back towards pre-lockdown trade levels, or is it still feeling the effects of the pandemic? Can you afford to pay your staff as normal, or do you need to look at cutting costs?
Whatever you decide, Peninsula has a suite of services to help protect your business through the COVID-19 outbreak and beyond:
The furlough navigator tool from BrightHR makes it easy for you to plan wage claims, record staff details, and meet the newest rules of the Job Retention Scheme. Learn more about the navigator tool here.
And unlimited 24/7 HR advice helps you instantly overcome any staff management challenge that you face. Try it today—claim your free advice call with an HR expert on 0800 028 2420 or through this link.
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