Removal of government support comes with further complications, says NICOLA GRAY
One of the most vital initiatives introduced to help companies get through the pandemic was the Coronavirus Statutory Sick Pay Rebate Scheme which provided employers with the comfort of knowing the Government would compensate them for paying employees who were isolating because of coronavirus.
In particular, the scheme was designed to help small to medium sized firms facing a substantially increased level of sickness. In short, it allowed employers to claim back up to two weeks of Statutory Sick Pay (SSP) that was paid out.
However, this hugely beneficial scheme will end on 17 March. Not only does it terminate, a further complication has risen around the difference in Covid policy direction for England and Scotland.
The Prime Minister recently announced the end of the self-isolation period for those in England, even if they have tested positive for Covid. It is now only recommended that they stay at home and avoid contact with others for five days.
In contrast, those testing positive in Scotland must still isolate for ten days, albeit they can end self-isolation after seven days if there is no fever and return two negative lateral flow tests.
From 24 March, there will be a return to the previous SSP rules, which means the special rules about statutory sick pay relating to Covid will be removed.
Employers should therefore revert to paying SSP from the 4th qualifying day their employee is off work, irrespective of the reason for sickness absence.
A further, slightly odd timing situation has subsequently emerged where, between 17 and 24 March, SSP will remain payable from day one but businesses will be unable to claim a rebate for Covid related absence during this time.
Employers have until and including 24 March to submit any final claims covering the period 21 December 2021 and 17 March.
Whilst there is some debate over the reasons for the Prime Minister’s sudden decision to change the self-isolation period, particularly with England’s health experts appearing to have some concerns over this, the fact remains that Scotland’s continued self-isolation rules, in conjunction with the removal of the rebate scheme, will create significant issues for many Scottish businesses.
Ultimately, the scheme provides employers with the confidence that they can afford to pay SSP when staff fall sick with coronavirus or are told to self-isolate. The removal of the scheme at this time will likely have a prejudicial impact of Scottish organisations, especially those that have been hit particularly hard by the pandemic. Given the deadline and backlog of claims, employers should be submitting claims sooner rather than later.
This scheme, and its removal, highlights the highly complex employment regulatory environment in which businesses now operate and how legislation can impact their organisations.
Whilst, hopefully, we are seeing the end of the worst elements of the pandemic, the employment issues around it remain and will likely be with us for some time.
Getting it right when it comes to employment law is no longer an option, if it ever was, but an absolutely necessity.
Nicola Gray is a partner in employmentlLaw at Aberdein Considine
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