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Coronavirus: Your workplace questions

Steve Bridger

At this difficult time, we'd like to offer people managers (and others) who are not CIPD Members an opportunity to ask questions about their specific workplace challenges.

We hope that collectively, the Community will feel able to chip in with guidance and signpost support and resources where these exist.

Thank you. 

  • Furlough and Salary Sacrifice.

    Hello all. I wonder if you could help me clarify some confusion that has crept into a discussion we've had today.

    A member of the management team thinks that, for the purposes of furloughing a member of staff, any salary sacrifice arrangements are automatically suspended. So members of our staff who are opted into salary sacrifice for their pension contributions will see a decrease in their employer pension contributions during the period of furlough and this manager thinks their net pay will remain the same.

    From what I'm reading online I think the salary sacrifice arrangements will continue on the employee's behalf and aren't automatically suspended. So the employee's gross pay will still be less than a colleague who is paid at the same rate but has not entered into the salary sacrifice. If we, the employer isn't making the additional pension contributions during the period of furlough then without the employee opting-out (which they can do as Covid-19 qualifies as a Life Event) then they will be at a small financial disadvantage next to colleagues not in the scheme or if they'd never opted in to salary sacrifice always having taken their salary as cash.

    Even if the employer wants to top up the 80% during furlough, which is very generous and will be well received, should we not still be offering the opt-out of salary sacrifice as best practice to employees?

    Any advice on this would be welcome.

    JJ
  • Am I right in saying that we are able to furlough employees for as long as we want (4 weeks, 5 weeks etc) as long as we are furloughing them for a minimum of 3 weeks and not breaking this furlough period.

    We sent a letter saying we were furloughing them for a minimum of 3 weeks at which point it will be reviewed.
  • in reply to Molly Peters

    Molly Hilton said:
    Am I right in saying that we are able to furlough employees for as long as we want (4 weeks, 5 weeks etc) as long as we are furloughing them for a minimum of 3 weeks and not breaking this furlough period.

    We sent a letter saying we were furloughing them for a minimum of 3 weeks at which point it will be reviewed.

    Yes

  • in reply to JJ
    Salary sacrifice is a permanent change to conditions and therefore doesn't automatically stop. HMRC have said however you can treat furlough as a life event and therefore offer option.
  • in reply to Jemma
    Jemma said:
    I have number of employees, on unpaid as didn't qualify for Furlough due to starting 2nd march. can I get your stance on whether whilst on unpaid they would still accrue and be paid the same as furloughed colleagues on Bank holidays and annual leave

    Yes generally - as the contract is still continuing holiday and other rights still exist.

  • It's not so much a workplace question but a question that I've not yet seen answered by CIPD themselves and I think others have asked as well (and I don't want to start yet another COVID related thread) - however - what are CIPD doing to support members at the current time in regards specifically to membership costs/renewals?

    Will they be reducing their renewal costs so that members who are on a reduced income or whose employers can no longer meet the cost of this for them, can keep their membership and not have to sacrifice it and the support available to them by having the membership.

    I may be wrong, but I've seen nothing from the CIPD about this topic and personally I feel that they need to address this issue sooner rather than later.
  • In light of the HMRC update yesterday and in particular the agreement needed to furlough. Some of my clients have a lay off clause in their contracts and some dont. For the ones tht dont we have got the employees to sign a variation to agree to furlough. For the employees that have the lay off clause we have issued a notice of furlough. But I am begining to panic now.

    This is the clause
    Lay-Off & Short-Time Working
    The Company has the right to lay you off and/or place you on short-time working.
    You will not be paid during the period in which you are laid off; however, this does not affect your entitlement to the statutory guarantee pay if you qualify.
  • I have a question. Some of our employees are asking if we can pay off their vacation balance. I understand the government has created temporary legislation to allow a longer carryover period. However, from a legal perspective, can we just payout the vacation if we want to? Our company has no problem doing it, especially because some of our employees family members lost their jobs and the money would be very helpful. Thanks for any info provided. Val
  • in reply to Val Santos
    We've decided not to just in case it breaks the 3 week minimum furlough requirement to claim the grant. We've been pushing the CBI on this question and nothing. Whilst you can chose to pay more that 80% or about £2500 if an employee fits in that category, annual leave is technically a different animal and I don't want us to get caught out. For example we have carried over Easter Holidays and not paid those days at 100%.