First published 23 March 2020 and updated 7 April 2020
The country is now in lock-down in an attempt to slow the spread of the coronavirus and avoid overwhelming the NHS with cases. This affects everyone, and seriously restricts the ways that charities operate. The Government has announced some extraordinary measures but most of the details have yet to be clarified.
Protect your people
My colleague Margot Madin in her blog of 17 March has already covered the advice given by the Charity Commission, which included its offer to extend filing deadlines during the crisis. A great deal has happened in the last few weeks, including historic measures proposed by the Government not only to slow the spread of the disease but to deal with its economic and social effects.
The over-arching message that comes out of the Government’s advice is that organisations, charitable or otherwise, have a duty to protect their people and those with whom they interact. For a charity this includes paid employees, volunteers, beneficiaries, and members of the public. On Friday 20 March the Government ordered certain types of business to close indefinitely. The list included several that could be operated by charities, notably cafés, theatres, food and drink venues, museums and galleries. It is not clear whether the closure order applies to certain services supplied to the homeless or vulnerable such as hostels and day-care centres, with Public Health England announcing they will issue updated guidance for those working with people who are experiencing rough sleeping and living in hostel environments as soon as possible. However, some charities, like Mencap, have already suspended some of their day-care services.
Claim your wage costs
Such closures will inevitably lead to the laying off of staff. However, if you cannot cover staff costs due to COVID-19, all employers in the UK, including charities, are eligible for the Coronavirus Job Retention Scheme and you will be able to access support to continue paying part of employees’ salaries to avoid redundancies. This is a grant of up to 80% of salaries, to a maximum of £2,500 pm per employee, plus the associated employment costs of employer’s national insurance and employer pension contribution, for designated furloughed workers. To benefit from the scheme, you will need to designate affected employees as ‘furloughed workers’ and advise them of this, preferably in writing.
Another question is whether you should pay full wages to your staff whilst they are laid off even though you can only reclaim 80%. Employers may choose to top up the remainder, but they are not required to do so. Government guidance is only that existing employment law remains in force and that there might be some negotiation. For the time being, therefore, all I can say is refer to the contract of employment, negotiate with your employees and ensure that any agreement is written and signed by all parties. For more information about how to access the scheme, read our comprehensive Coronavirus Job Retention Scheme FAQs within our COVID-19 advice and guidance section on our website.
Sick Pay reimbursed
The Government recognises that employees who contract the virus will need to be off work for at least 14 days. This will also apply to anyone whose household includes an infected person. The Statutory Sick Pay entitlement now commences at day one of the sickness or self-isolation period. The usual doctor’s ‘fit note’ is not required however a note can be obtained through the NHS 111 isolation note service if required by the charity. More importantly, employers with less than 250 employees will be able to reclaim the first two weeks’ statutory sick pay from the Government. It has been confirmed that this will be available to small and medium-sized charities as well as businesses.
So, in summary, if your charitable work cannot be carried out without the risk of infecting your staff, volunteers or beneficiaries, you must cease operations for the time being. If you have paid employees you should take steps to ensure that you are eligible for Government support.
Please note that the situation is changing rapidly so it is important to review the Government’s guidance regularly. Keep reading our blog and we will endeavour to advise you of further details as they are announced. We also have a dedicated COVID-19 section on our website which includes details of all the latest Government measures and a range of useful materials to help you navigate what it means for your organisation.
If you need further advice, get in touch with your local UHY charity and not for profit expert.
