Settle Status: EU Workforce
Do you have employees from the EU working within your business? Changes to the law may mean that they have to reapply to secure their residency status with the new EU Settle Status.
To make this transition period easier, we’ll be stepping you through what you need to know as an employer to support the welfare of these employees in such indefinite times.
What is the EU Settle Status?
On 31 January 2020, the United Kingdom officially left the European Union. Although no official deal has been agreed upon yet, changes have started to slowly filter through – one of the largest being ‘Settled Status’.
But what is settled status and why does it matter?
Settled status is the term for being a resident in the UK without any immigration restrictions on the length of your stay. There are two types of status in the EU Settlement Scheme:
- Settled status
- Pre-settled status
EU citizens who are granted settled status are permitted to stay in the UK as long as they choose; they can also apply for a British citizenship if they are eligible.
Pre-settled status – which is usually granted to those who have not lived in the UK for five continuous years – allows inhabitants to stay in the UK for a further five years from the date they are granted pre-settled status. After this period, individuals can reapply for full settled status.
The deadline for applying is 30 June 2021.
It is free to apply to the scheme through the government website.
Before beginning the application process for settlement status, applicants should have ready proof of identity and residency. It may also be worth double-checking that applicants have not already received pre-agreed settle status here.
What does this mean for employees?
Citizens of the EU, EEA or Switzerland can apply to the EU Settlement Scheme to continue living in the UK after 30 June 2021. Without confirmed settlement status, these citizens will not have the assumed right to:
- Work in the UK
- Use the NHS for free
- Enrol in education (or continue studying)
- Access public funds, such as benefits (if eligible)
- Enter the UK without a visa
Employees that do not have settled status face the potential risk of having paperwork refused, being unable to work legally in the UK and even deportation – uprooting their family, career and life.
Therefore, it is important to support your EU workforce through their application to ensure there is no disruption to their legal right to work or live in the UK after this deadline.
How can employers help?
Importance of application:
As employers, there is no legal requirement to inform your workforce of the impending deadline but it’s a good idea to ensure there are no legal hiccups (and it also feels like the right thing to do).
Employers do not require proof that employees have applied but getting status through the scheme will protect their future rights, so it is very important that they apply if you want them to continue working for you.
There are a few practical steps you can take to encourage your employees to apply.
Why not start by sending a letter to all your EU employees? It doesn’t have to take much time with letter templates already drafted up and ready to go. You can also ensure visual cues help prompt their minds by displaying informative posters.
Remember: although you can encourage people to apply, as an employer, you cannot ask them whether they have or about the outcome.
Supporting the process itself:
The process itself was designed to be as seamless as possible. However, with the added complication of coronavirus, a few spanners have been thrown in the works.
Due to many businesses being shut for a number of months and international travel complications, employees may have struggled to renew expiring passports. Therefore, workers may require flexible hours or additional holiday days to address this before their application.
Further, it may be useful to make your facilities available for support. For example, at this time, many printing shops and internet cafes are shut due to the pandemic. Therefore, pre-granting access for your employees to use your scanner, printer or work phone for their application may aid their progress.
Finally, although it is not standard procedure, if the employee requires any documentation to support their application then provide this in a timely manner; holding this process up will cause additional stress for the employee, distracting them from their work and prolonging indecision.
The uncertainty formed in the last few months has had an impact on everyone. However, we must consider those who experience further doubt about their rights within the country compassionately.
Managing stress and keeping a close eye on employees is essential at all times. Look out for key indicators of deteriorating wellbeing, such as:
- Reduced engagement
- Missed deadlines
- Lower morale
- Increased tiredness
If you notice a significant shift in their wellbeing, it may be time to check in; look out for tell-tale signs of poor employee mental health and be ready to act.
Where possible, refer employees for additional support and be compassionate towards their situation. It may be worth considering ways you can support employees with stress outside of work with flexible working, duvet days or even a shift in the workplace culture.
The charity MIND has some great, free resources to help individuals manage stress – at work and home. Could sharing some of their best resources equip your taskforce with more resilience?
Considering your current employees is a great first step, but what about future employees?
If you are planning on recruiting before the settlement deadline, it’s important that you don’t sit on your hands.
Speeding up your recruitment process will allow your business to:
- Beat the deadline;
- Widen your search for talent;
- Allow the successful candidate (if from the EU) to apply for settlement status in time.
As an employer, you have a duty “not to discriminate against EU citizens in light of the UK’s decision to leave the EU as both a prospective and current employer”.
That means that you cannot make an offer of employment, or continued employment, dependent on an individual having made an application. However, consideration should not stop here; ensure you address workplace discrimination at all levels for a safe working environment for all.
- Checking your processes and procedures for bias
- Educating employees on how to report discrimination
- Including EU citizens in your diversity reports
- Reminding employees of the fine line between ‘banter’ and discriminatory harassment
- Ensuring you have the processes in place to address hostility appropriately
Right to work checks:
It has been confirmed that there will be no change to right to work checks until 1 January 2021. That means that job applicants can continue to prove their right to work using any of the following:
- their valid passport or national identity card if they’re an EU, EEA or Swiss citizen
- their valid biometric residence card if they’re a non-EU, EEA or Swiss citizen family member
- their status under the EU Settlement Scheme using the Home Office’s online right to work checking service.
You will not be required to undertake retrospective checks on existing EU employees. Therefore, changes will only apply to applications in the new year.
For more information, read the official right to work checklist here.
For official support on how employers should support the EU Settle Status scheme, GOV have created an ‘employer toolkit’ here.
However, if you require expert HR support and consultancy, please get in touch.
Clarity Beats Uncertainty
Remember that round: ‘What Happens Next’ from a Question of Sport?
At the moment, we are all asking that question constantly…
- What changes will there be to lockdown restrictions?
- Will any uptick in revenue stall?
- Will people be able to pay me for work done?
So, to combat all this uncertainty we can at least ensure that we have clarity of where we need to be and the impact of missing or achieving those targets. This way, we can act fast to address any issues – being proactive with cost-cutting, additional funding or growth planning, as required.
When meeting regularly with my clients we look at certain key targets to help them know where they need to be. Let’s take a little look at what these are.
Understanding breakeven will highlight a good from a bad month.
If you are making profits it will trigger a need to ring fence monies for future corporation tax. If you are making losses, then you need to understand the impact on retained earnings (i.e. the profits you have built up over the years).
This is particularly relevant if you take part of your income as dividends. Dividends can only be taken where there are sufficient retained earnings and repeated losses will erode this and so you will need to monitor your position.
Knowing your breakeven will ensure you don’t get to year end without either sufficient provision for corporation tax or having taken illegal dividends.
2. Cashflow Neutral
The income you require to be cash neutral each month may well be higher than your breakeven. This might be due to loan repayments or if you take some of your income through dividends.
Knowing this straight away will help you understand if your bank balance will start reducing and immediately by how much. Clients may not pay straight away but already you have the insight as to how much your cashflow will be impacted even after all invoices are paid.
We also look at the capacity that the current workforce can deliver in terms of income.
This helps in two ways.
Too much resource:
Firstly, we can understand if we have too much resource for current levels of income and assess how long we can support this.
Not enough resource:
Secondly, and on a more positive note, we can see as the business grows when we will need more resource. We can assess whether to employ or outsource and we can do this in advance of hitting capacity thus ensuring service levels are maintained.
4. Bank Balance
Many clients start off thinking just monitoring their bank balance is sufficient.
I can see why they think this way, but this just tells you the here and now and doesn’t help anticipate the impact of loss-making months now. With many businesses having recently taken out Bounce Back Loans their bank balances are currently quite healthy and can, in fact, be masking issues for later down the road.
So, in summary, to grasp back some of that certainty, ask yourself if you know these three figures. With our environment being so uncertain, you at least know where you need to be and the impact of falling short or exceeding it – because clarity beats uncertainty.
About Helen Fleet:
Helen Fleet of HF Financial Strategy works as a Finance Director and guides companies to deliver their financial and business objectives. This can include cashflow planning, pricing reviews and ways to improve profitability.
For more information about HF Financial Strategy, visit her website here or discover more of her guest blogs here.
We decided, as part of the Coming back from Covid series, to give you a quick guide to restructuring.
Whether you are just moving the chairs around the room or making people redundant, our Restructuring Toolkit should provide you a great place to make a start.
We’ve included some templates to help you along – helping you make the most out of your limited time and budget at this difficult time. We sincerely hope that it helps with this difficult time ahead.
To quote the title of a famous Sam Cooke song, one of the many consequences of the lockdown is that we have all had plenty of time to think, ruminate and ponder about our lives. For us business owners, this time of reflection has extended to include our businesses.
As a result, many may well be facing the prospect of changing their business to adapt to the changing times – be it out of necessity or because you have finally had the time required to get your house and business in order and consider the future.
In short, whether we like it or not ‘A change is gonna come’.
Restructuring Your Business
Whether a restructure is a choice or your only option, it can feel like a pretty overwhelming task to approach alone… So, where should you begin?
Below, we share some of the common questions we get asked about restructures and provide clarity to help you on your way.
“Can I just ‘do it’?”
Yes, you can. However, we recommend getting a restructure plan in place first.
This doesn’t have to be anything fancy or a scary task. Just write out your rationale for doing it, the consequences it will have, the timeline for carrying it out and the process that you will follow.
Doing so will help you gather your thoughts and put some structure around it, so that you can communicate it to your staff.
“What is consultation?”
Consultation is borne out of Information and Consultation Directive, where employers are obliged to consult with employees on any aspect that will affect their employment.
Before you moan, you really should do it!
However, be sure not to confuse consultation with negotiation. Whilst you should take on board your employees’ views about the restructure, you are under no obligation to actually implement those views.
“Do I have to consult?”
Yes, because failure to consult can cost you.
An employment tribunal can award a penalty for failure to consult. And, in the case of TUPE (Transfer of Undertakings – Protection of Employment Regulations), that award is 13 week’s salary.
“How long should consultation last?”
There are no hard and fast rules if your business has less than 20 employees. However, it should be no less than a week and as much time as possible.
“Can I use Last In, First Out?”
We’re telling you now – no you can’t. We’re not sure where the LIFO philosophy came from but forget you ever heard of it.
“Does furlough cover redundancy?”
The short answer is no.
If you are looking to end furlough to make your employees redundant, seek further support or contact us.
“What is selection criteria?”
Selection criteria is the basis by which you will select employees for redundancy.
The criteria can be based on attendance, performance, disciplinary, experience and qualifications to name but a few. Some businesses choose to base this on a competitive recruitment process.
Helping You Restructure
We decided, as part of the Coming back from Covid series, to give you a quick guide to restructuring.
Whether you are just moving the chairs around the room or making people redundant, our Restructuring Toolkit should provide you a great place to make a start.
As we are a generous lot here at CrosseHR, we’ve also included a few templates to help you along – helping you make the most out of your limited time and budget at this difficult time.
And remember, if you need any further help with your restructure or any HR concerns, we are just a phone call away: 0330 555 139.
What’s included in our Restructuring Toolkit?
Our restructuring toolkit is free to download here. Included within it is:
- Restructure business plan template
- General guide to redundancy and the redundancy procedure
- Consultation invitation letter template
- Template for recording individual consultations
- Letter template to inform employees they are ‘at risk’
- Formal redundancy notice template
You can download it for free here.
If an applicant or employee has a criminal record, that doesn’t mean they aren’t right for the job.
You may be surprised to learn how many people end up with a criminal conviction by the age of 53. So, how does this affect your hiring decisions?
We explore this and more in our presentation below.
Get to understand criminal record checks in our presentation below, including:
-The Rehabilitation of Offenders Act
-Different Types of DBS
-Spent vs Unspent Convictions
Please play and pause the slideshow by pressing the button in the bottom left of the video.
If you have any questions, please don’t hesitate to get in touch.
We are living in very strange times and it is not the first time I have said that…
Who would ever have thought 3 months ago that we would all be cooped up in our own homes for days at a time, let out for an hour, having to queue for our shopping, fretting about toilet roll and tinned tomatoes, baking banana bread and relying on a thing called Zoom we had barely even heard of? Some days, I feel like we’re trapped in some weird apocalyptic Netflix drama – but maybe that’s just because I’ve spent a while watching that too – Tiger King and White Lines anyone?
Moving Forward – HR in a Post-Lockdown World
However, lockdown didn’t keep us down for long. We adapted surprisingly quickly, kept going and it’s starting to feel like we’re finally coming out on the other side.
That’s the reason for this blog to be honest…
My raison d’etre is to help small businesses navigate the intricacies and plain madness that comes from employing staff, so I decided to make things easier for you all and put together a pack with all the common questions I am being asked by you about the ‘BIG RETURN’ – along with some guidance, information and resources that should help ease your concerns.
The amazing Helen Fleet will also be contributing from a financial standpoint (we are all in this together).
So, you want to open up and start the BIG RETURN, what should you do?
Firstly, you need to think about what your organisation needs to look like; i.e. will it be the same or will you need to pivot and change?
- Do you need to bring people back into the office or keep them working from home for a while or for the foreseeable future?
- Have you furloughed staff you need to bring back or are you keeping them on furlough or a bit of both?
- Will some staff be returning at all?
Bringing People Back
What should you be considering before you bring people back? Making these considerations is a great place to start…
1. The big first tranche of returnees will occur in July where the furlough rules are changing to allow employees to be furloughed on a part-time basis. If you need to take employees off furlough, it is advisable to write to them to have it confirmed. In our COVID support kit, we’ve crafted a brief returning from furlough letter template to make this an easy task.
2. You need to do a Risk Assessment for each returning employee. Unfortunately, the only COVID specific risk assessment I could find is from the Northern Ireland HSE but its great and I highly recommend you use this as a basis for your risk assessments. You can view it within the risk assessment pack of our toolkit here.
3. You need to get your offices ready so that the appropriate level of social distancing can occur. It’s also a good idea to deep clean the office if you can and provide plenty of hand sanitiser, soap and notices from the HSE around hygiene and safe practice. Encouraging good hygiene practice will help to keep to kill the virus.
4. You also need to think about your employees’ journeys to work. Does this put them at risk?
5. It may be worth considering staggering and extending hours, and whether working more flexibly could help your business get back quicker. Check out our Flexible Working Policy within our pack for more information on this.
6. Do you even want your employees in the office at all – or would you prefer they worked from home? If so, we’ve also created a Working from Home Policy to help you formalise and control this agreement.
7. You may want to restructure.
8. You may need to consider redundancies.
These are just some of the considerations you may want to make before rushing back to work.
When They Return
Mental health, divorce, feelings of anxiety and displacement, pure joy and relief – these are just some of the things you must prepare to face on your return.
But don’t worry, CrosseHR are here to help and we have you covered. Our comprehensive Return to Work Toolkit has been drawn up by experts and our team. It’s designed to help provide you with everything you need to get started, including:
- Information on Ending Furlough
- Return to Work Letter Template
- Information for Directors
- Health and Wellbeing Policy
- Sickness and Isolation Support
- Health and Safety Guidance
- Changing Terms and Conditions
- Childcare and Returning to Work
- Maternity Issues
- Conducting Return to Work Interviews
- Flexible Working Policy
- Flexible Working Request Form
- Flexible Working Methods
- Homeworking Policy
- Stress Awareness Template
- Supporting Employees – Debt
- Energise – Tackle Business Finances with Helen Fleet
- Supporting Employees – Divorce
So feel free to download it, it’s on us! And, if you want to chat further, we are always delighted to help.
Olga Crosse, on behalf of the team at Crosse HR.
Employment tribunals have been a popular topic in the industry since the independent body, the Law Commission, recommended that they should be given powers to:
- Award up to £100,000
- Deal with disputes where employees are still in work
- Double the claim period to 6 months in response to the pandemic
The significance of these changes could be huge after COVID-19 starts to lessen. Disgruntled workers who have worked excessive hours or feel mistreated will have a longer period to raise their case, in addition to an anticipating rise in unfair dismissal claims, discrimination and redundancy disputes. The resulting pay-out of this could terminate your business’ chances of recovery.
If you can’t settle a case within the workplace and you are forced to escalate, you best be prepared. Giving evidence against a potential colleague or friend can be an unsettling experience.
To help get you started, we’ve collated some top tips so that you can keep your cool.
It goes without saying that it is vital to represent your organisation well in front of the judge – and the first step is knowing the right etiquette.
We’ve all seen plenty of films that depict a tribunal and, for those that have never experienced it first-hand, that may be all they have to go off. But life isn’t an episode of Judge Judy, so how should you act?
Simply put, you want to come across as professional, competent and likeable.
- Dress smartly
- Be punctual – arriving at least 30 minutes before you are due
- Follow all instructions
- Address the judge/panel correctly – as ‘Sir’ or ‘Madam’
- Show respect by standing whenever the judge and panel enter or exit the room
It is also important to remember that you are being analysed from the get-go, not just when you’re holding the floor. You will need to be conscious of your body language and refrain from showing frustration.
Although the system itself is not designed to trip you up, some people end up tripping over their own feet due to nerves – this is perfectly normal. However, to present yourself as a pro, communicate effectively with our handy tips below.
Give Straight Answers to Straight Questions
A common mistake we often see is the need to fill silence.
Although it’s important to provide sufficient detail in response to a question, the judge will normally indicate whether they have understood or need you to expand further. Therefore, be conscious of not waffling and remember to speak slowly and clearly to illustrate that you are calm and collected.
Don’t give the opposition any leverage with your position – ensure you display confidence in your case.
By using language, such as “would have,” you indicate uncertainty in your own statement. Instead, use less assuming language that reassures the judge that you remember, such as “I did…” and stick to the facts.
In the case that you don’t remember, or you’re not sure, it is best to be upfront about your weaknesses rather than covering them up.
Direct Your Answers to the Panel
When you’re answering a question, regardless of who asks, it is important that you reply to the judge or panel. This can feel quite unnatural at first. Remember, you are trying to help the judge see your way, not the opposition, so direct your answer accordingly.
TOP TIP: Point your feet in the judge’s direction to remind yourself where to look when you speak!
Giving evidence can feel uncomfortable, especially if you’re friendly with the person/s in question. However, it is your sworn oath and legal obligation to tell the truth, so do not be swayed by any personal bias you may have.
When answering a question, take your time to think through your reply. If any evidence you provide is found to be false or inaccurate, no matter how small or unrelated to the case, the opposition will try to use this to define your character and determine how trustworthy you are.
Again, this is not a memory test. If you don’t remember, be honest and admit it rather than making assumptions or guesses.
Using the Bundle
It is standard procedure that relevant documentation, referred to as the ‘bundle’ will be collected ahead of your tribunal date. Any document that is likely to be referred to should be placed into a bundle for use by the judge, witnesses and other relevant parties. It may include items, such as:
- Witness statements
- Evidence of loss of earnings
- Evidence of misconduct
- Contract details
- Previous communications and efforts to resolve the issue
You will have access to a co
py of the bundle in advance, so be sure to take the time to familiarise yourself with this and mark relevant pages if necessary. It is also recommended to re-read your witness statement the night before, to ensure you have a clear recollection of events.
During the hearing, if it would be helpful to refer to the document, ask to do so and take a moment to remind yourself before speaking.
As a respectable professional, you’ll have likely been exposed to some office conflict or butting heads. However, this may seem like horseplay after being exposed to a distressed and angry opposition at a tribunal, so it is important to be resilient.
Providing evidence at an employment tribunal can be an uncomfortable experience but remember not to take it personally – it is the opposition’s job to question your character and discredit you and the judge’s role to determine a just ruling.
It’s not nice having someone doubt your honesty, competency and professionalism. However, it is important not to become frustrated, offended or visibly upset. The opposition will look for weakness and exploit this.
Instead, focus on remaining clear and open to questioning.
Prepare for their attack
Below are a few common techniques that may be used to discredit or unnerve you by the opposition.
- Pressuring you into inaccurate statements – often, the opposition may try and pressure you into a black or white situation when it may be a shade of grey. Ensure you look out for this and stick to your grounds.
- They ask “is it possible that…” to try and lead you into an admission or inaccurate statement. It is important that you answer this factually but be careful of your language.
- They may use cross-examinations to check your facts and statement.
- They may interrupt you to disrupt your thoughts or try and elicit a reaction.
Your focus should remain on telling the truth and remaining calm. Try your best not to become frustrated, offended or upset. Although it can be upsetting having to escalate an issue, if you’re telling the truth, there is nothing to hide.
How do I become Resilient?
According to MIND, “Resilience is not just your ability to bounce back, but also your capacity to adapt in the face of challenging circumstances, whilst maintaining a stable mental wellbeing.”
The good news is, resilience is not a personality trait – it is something we must all takes steps to achieve. We can do this by making some adjustments:
- Make some lifestyle changes
- Look after your physical health
- Give yourself a break
- Build your support network
The charity MIND has some useful resources to help you get started here.
Need more advice?
If you’re preparing for an employment tribunal and you’re in need of some expert advice, please get in contact here.
Citizen’s advice also offers some helpful, free guidance that you may find useful on their website here.
It can be hard to keep on top of the latest advice and regulations at the best of times when you’re spread thin and busy with deadlines – let alone in the middle of a global pandemic.
Understandably, many of our clients feel overwhelmed by all the information out there. Especially with so many opinion pieces and inaccurate assumptions, it can be hard to know what to trust.
To help you cut through all of this noise, we’ve collated some useful resources to help address your most pressing concerns.
This article outlines some of the key changes that you should be aware of and points you in the right direction for more information and support should you need it.
We hope it helps in this stressful time.
Coronavirus Job Retention Scheme
It is well reported that HMRC will reimburse 80% of furloughed workers’ wage costs up to a cap of £2,500pm. This is part of their plan to support businesses during the coronavirus outbreak.
Who counts as a furloughed worker?
A furloughed worker is someone who is still employed but not working, perhaps due to a lack of work. The purpose of this scheme is to help businesses to continue paying employees that would have otherwise been laid off by putting them on temporary leave.
Furloughed employees must have been on your PAYE payroll on 28 February 2020, and can be on any type of contract, including:
- Full-time employees
- Part-time employees
- Employees on agency contracts
- Employees on flexible or zero-hour contracts
If you have made employees redundant since 28 February 2020, you can rehire and cover these employees under the scheme too.
What will it cost the employer?
The Coronavirus Job Retention Scheme is open to all UK employers for at least three months starting from 1 March 2020. In addition to the 80% grant covered by the government, businesses must also pay:
- Employer National Insurance contribution
- Minimum enrolment employer pension contribution
Where a company is being taken under the management of an administrator, the administrator will be able to access the Job Retention Scheme.
A breakdown of the government support available for businesses
How to access the scheme
Claiming Statutory Sick Pay (SSP)
If you’re self-isolating because of COVID-19, you are entitled to receive Statutory Sick Pay (SSP) of £94.25 per week.
When can I claim SSP?
New legislation has been brought forward to give you access to SSP from the first day you’re self-isolating and cannot work. This new legislation came into action on 13.03.20 and overrides the previous 4-day caveat.
How to report and manage sickness in 10 easy steps
When should I self-isolate?
How to claim SSP
Changes to IR35
In light of the coronavirus creating business uncertainty and high levels of stress, the Treasury confirmed that they would postpone IR35 for another year.
This means that businesses now have until April 2021 to address the reforms necessary. These changes will drive major change in the contracting industry.
What is IR35?
IR35 is designed to combat tax avoidance by “disguised employees”. Under new rules, every medium and large private sector business in the UK will become liable for setting the tax status of any employee that they hire – including contract and temporary workers.
The new rules will apply to businesses with either:
- 50+ employees
- An annual turnover of over £10.2 million
With many companies already reviewing their policies and contracts in response to the COVID-19 outbreak, now is a great time to address IR35 so that you’re prepared when the changes come in next April.
What are the changes that IR35 will make?
Understanding off-payroll working (IR35)
The Good Work Plan
As of April 2020, The Good Work Plan comes into place. This is a plan that sets out the government’s vision for the future of the UK labour market. It seeks to “reward people for hard work” in a bid to boost productivity and earnings in the UK.
The new plan details how to address issues in our labour market, such as:
- The implications of new forms of work
- The rise of digital platforms
- Impacts of new working models
The Good Work Plan also draws on recommendations about:
- Employment status
- Agency workers
- Increasing transparency in the labour market
- The enforcement of employment rights
What changes you should expect to see from The Good Work Plan
Policy Paper – Good Work Plan
Deferring VAT and Income Tax Payments
The government have announced that they will support businesses by deferring tax payments, as outlined below.
- If you’re self-employed, Income Tax payments due in July 2020 under the Self-Assessment system will be deferred to January 2021.
- For VAT, the deferral will apply from 20 March 2020 until 30 June 2020.
All UK businesses and self-employed individuals are eligible. There is no application required.
Relieve temporary financial distress with HMRC Time to Pay Offer
A breakdown of the government support available for businesses
Supporting your employees’ financial wellbeing
Typically, your employee’s largest financial outgoing will be their monthly mortgage payment.
Taking a break from their mortgage – with a mortgage holiday of up to three months – can act as welcome financial relief. In this unsettling time, if you are having to cut or reduce hours, it may be worth providing some resources for your employees to access this aid.
Am I Eligible?
Whether you are eligible to take a payment holiday, for how long, and the conditions you must meet depends on:
- Your lender
- Your mortgage contract
- Your financial circumstance
It is best to advice that your employee contacts their bank directly to discuss a mortgage payment holiday. However, please do make them aware that this will make their payments go up afterwards.
What About Those Who Rent?
The government has announced a package of measures to protect renters that may be affected by Coronavirus and a subsequent loss of earnings. The emergency legislation means:
- You cannot be evicted from social or private rented accommodation while this national emergency is taking place
- Landlords can take out a mortgage holiday on their Buy to Let mortgage
Pros and Cons of a Mortgage Holiday
Mortgages and Coronavirus: Information for Consumers by FCA
Government Press Release – Protection for Renters
If you are still unsure about how you should be responding to the COVID-19 outbreak, please refer to GOV.UK platform here. It is frequently updated with the latest information and advice.
For further guidance for employees, employers and businesses, please visit the government website here.
It is well recognised that isolation and the stress of the outbreak may be triggering for many, leading to a decline in mental health.
In order to help you address this, we’ve attached some useful resources that help you become aware of your own mental state and some handy tips that may help you look after yourself during this difficult time.
Discover how you should be looking after your mental health during the Coronavirus outbreak here.
The mental health charity, MIND, have also released some support and resources to help you during this time. You can access this here.
Working from Home
If you’ve recently transitioned from office to home, the resources below may help you settle into your new work environment more seamlessly!
Tips for creating a positive environment to work from are available here.
Top tips for working from home are also available here.
We also appreciate that it is especially hard for those who are working from home whilst simultaneously juggling homeschooling. If you’re looking for some advice about working from home with children, you can find some tips here.
If you have any concerns or questions about the latest changes in legislation or how they may affect you, please do not hesitate to contact us online or email email@example.com and we will try our best to point you in the right direction.