Track Trace SSP and Employer Pays 20pc Furlough Pay

Published / Last Updated on 28/05/2020

Impact of Track Trace SSP and Employer Pays 20% Furlough Pay

Two points to note:

  • In August, Employers using government’s furlough scheme will start paying 20 per cent of staff wages, their National Insurance employer contributions and their pension contributions from August.  This could amount to 30%+ of your pay even if they are not able to trade.
  • Track and trace is trialling at present and will start to have greater impact on more people being required to self isolate i.e. not just the individual but the individual’s family will also need to self isolate if they have been in close contact with an infected person.

What happens if you are working and you are told to self isolate?

If you are able to work from home or are already working from home then normal pay can continue.

If you are unable to work from home e.g. you work in a supermarket, you will be required to take sick leave:

  • If your employer has a sick pay scheme you may qualify for this.
  • If you employer does not have a sick pay scheme you will moved onto Statutory Sick Pay (SSP), currently a maximum of £95.85 per week. (Your employer can claim back the first 2 weeks SSP and then they full pay the rest of your SSP).
  • Your employer may offer you the option of taking ‘annual leave’ so that you can protect full pay, but use up your holiday entitlement.
  • When you are again fit for work you can return to work.

If you are already furloughed and told to self isolate:

Your employer cannot claim furlough pay and SSP for the same period.  They will either continue with furlough for you or they will move you to SSP (which could be lower than furlough pay).

Most employers are likely to continue with claiming and paying furlough pay.

When we move into August, some employers may be faced with option a) Furlough pay or b) Move you to SSP – it could literally be a ‘numbers’ game but the employer would then be forced to take you on back at work after you ‘sickness period’ is over.

This is when it gets difficult for employers that have no trade or income but they must pay 20% furlough pay, national insurance and pension contributions from August.  We expect a significant rise in redundancies and unemployment from August.  Is this a government strategy?  Paying unemployment benefits may be cheaper overall than paying furlough pay for the government?  Cynics that we are.

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