Category Archives: hong-kong

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Lewis Silkin – A briefing note on the immigration implications for Tier 2 workers of changes to salary, the Government’s Furlough Scheme and redundancy amid the COVID-19 pandemic

The spread of COVID-19 around the globe is having significant and wide-ranging economic as well as public health impacts. Businesses are already feeling the adverse side-effects. This note will take you through the immigration implications of a number of actions you may be forced to take to protect your business over the coming months.

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Placing employees on unpaid leave

Before taking any decision to place Tier 2 employees on unpaid leave or to grant voluntary periods of unpaid leave, employers must consider their sponsor compliance duties. These stipulate that a Tier 2 sponsored worker cannot take more than four weeks of unpaid leave per calendar year, according to their normal working pattern. This is cumulative and not only in one single block.

The Home Office guidance ordinarily requires an employer to withdraw sponsorship where this occurs. However, the Home Office Coronavirus (COVID-19) immigration guidance currently states that sponsors are not required to withdraw sponsorship and will not face compliance action if an unpaid absence from work is authorised and due to the exceptional circumstances of the COVID-19 outbreak.

The guidance was last updated on 27 February 2020 and does not explicitly mention absence due to the need to care for children during the closure of schools and other childcare providers, however our view is that absence for this reason is part of the exceptional circumstances of the outbreak and is covered.

Cutting salaries

If you are having to consider cutting salaries, this may have implications for Tier 2 workers. A drop in salary has to be reported on the sponsor management system within 10 working days. If a drop in salary takes a Tier 2 employee below one of the salary thresholds for Tier 2, such as the £30,000 general minimum for the visa route, then the usual position (with some exceptions such as for parental or long-term sick leave) is that they will have to make a new visa application. Furthermore, if you have to drop the salary for someone who was granted a Tier 2 General visa based on the fact that you did not need to run the resident labour market test as their salary was above £159,600, and the drop takes them below this salary level, then the current guidance requires the person to make a new visa application.

The Home Office has not yet issued specific guidance on this issue so please seek further advice from us if you have Tier 2 workers affected.

Furloughing your employees

The Government has announced the Coronavirus Job Retention Scheme to provide UK employers with support for paying wages of staff who would otherwise have been laid off (furloughed) as a result of COVID-19. The scheme was announced last Friday, 20 March. The Government has published a short overview for employers and a separate overview for employees, and we are expecting more information imminently.

In essence what this means is that the Government will reimburse up to 80% of the wage costs of employees who would have been laid off, up to a maximum of £2.5K per month. This means that the employees will continue to be paid but should not do any work for you.

A detailed analysis of the announced scheme can be found here.

As an employer there will be extra considerations for those employees who you intend to furlough who are working for you on a Tier 2 sponsored work visa. The scheme specifically states that the individuals who are furloughed must be those who you would have ordinarily laid off and who must no longer work for you during the time they are away from the business.

This causes issues for Tier 2 workers as there are currently restrictions on how long they can be placed on unpaid leave (which the Home Office indicate that they will be flexible on) and whether sponsorship can continue whilst they are furloughed as they will not be working with you.

The Home Office is yet to respond to these new developments and how they affect Tier 2 workers. Until such time as guidance is made available, we are not able to fully confirm that Tier 2 workers can be furloughed without this affecting their status in the UK. It is likely the Home Office will be flexible, and we will update in due course.

In the meantime, we would recommend you do the following:

  • Report the change in status on the Sponsor Management System as a change in migrant circumstances
  • Keep detailed records of what has occurred in case of future audits
  • Contact us for further advice

Terminating the employment of Tier 2 workers

Unfortunately, you may be forced to consider terminating the employment of sponsored workers or making them redundant as a result of the economic downturn. In this circumstance, employers are required to notify the Home Office of the end of their employment by submitting a report on the Sponsor Management System within 10 working days of the employee’s last day of employment.

In normal circumstances, notifying the Home Office of a sponsored worker’s termination or redundancy will initiate the process of visa curtailment and, after they have left the UK, a 12-month ‘cooling-off period’.

The Home Office will then issue the worker with a ‘curtailment notice’ shortening their permission to stay in the UK to 60 calendar days and confirming the new visa expiry date. If there are fewer than 60 days remaining on the visa when the Home Office letter is issued, no change will be made to the expiry date. The curtailment will also apply to any dependent family members.

Between termination of employment and the new expiry date, the individual is permitted to seek alternative sponsorship or to submit an application for leave to remain in an alternative category for which they qualify. However, if they are not able to find a new sponsor the individual and any dependent family members will be expected to leave the UK or face enforced removal.

On leaving the UK, the 12-month cooling-off period will be triggered, and they will need to wait for this to end before they will be eligible to apply under the Tier 2 category once again. The cooling-off period can be bypassed only where the individual’s new guaranteed salary exceeds the high earner threshold of £159,600 or where their original Tier 2 Certificate of Sponsorship (CoS) was assigned for three months or less.

The Home Office has not provided any official guidance yet on departing from the normal requirements, however we anticipate more detailed guidance will be forthcoming. Please contact us for further advice should you have questions about the impact of termination on any sponsored employees.

Please see our guide for other immigration issues raised by Covid-19. If you have any queries regarding this please contact a member of the immigration team.

 

 

Related Item(s): Immigration & Global Mobility, Covid 19 – Coronavirus

Author(s)/Speaker(s): Joanna Hunt, Priya Gandhi,

Categories hong-kong

Lewis Silkin – Pandemic right to work check procedures

Under the Government’s current code of practice for right to work checks (“RTW”), it is possible to conduct a fully compliant RTW on all new starters without seeing the individual face to face. During times of a pandemic such as coronavirus, where working from home policies apply, we advise following the procedures outlined below.
A fully compliant RTW can be done in one of two ways, without face to face contact.

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1. Remote RTW check for an individual holding a Biometrics Residence Permit (“BRP”) or Pre-Settled/Settled Status under the EEA Settled Status scheme

For anyone who has a BRP card or Settled Status under the new system for EEA nationals, it is possible to conduct an online RTW. You would do that by following the prompts at https://www.gov.uk/prove-right-to-work.

First, the individual accesses their online immigration record via the link. They will need to follow the prompts to create a one-time use share code for an employer RTW. They should then provide you with the share code to use within 30 days of its creation. Please be aware that the Home Office will have a clear audit record of you using this code and exactly when you did so. Thus it is very important you do so correctly, prior to them actually starting work.

When you login with the code, it will show you the individual’s profile along with what employment they are allowed to undertake on their visa status. You should check the photograph depicted as well as any employment restrictions that are advised on their record. You should also view the person via a live video call eg skype or facetime, in order to confirm they are the person depicted, just as you would for a standard face to face RTW.

Please ensure that you keep a copy of this check. We would suggest a screenshot of the video call open concurrently with the online RTW screen open with their details. You can save this as a hard or soft copy but it should be in an unalterable format, dated and clearly signed or marked by the person taking the check so that it is clear they are an authorised and appropriate employee of the company, taking the check on or before the individual’s first day of employment (in the usual way for a valid RTW).

2. Remote RTW check for everyone else

For those that do not hold a BRP or settled status as above, for example, British nationals, you can conduct the RTW by having them courier you their original current passport and then checking its validity etc in the usual way but via a video call. The same records must be retained ie certified dated copies either in hard copy or soft copy. The person conducting the check must see the original document to verify it against the video call of the person. You should continue to bear in mind that only those documents on the Home Office’s RTW checklist are ever acceptable. This can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/774286/Right_to_Work_Checklist.pdf

We would suggest that the employee who is responsible for taking the check, is the one to arrange the courier for the documents so that they can protect their personal home address information. Care should also be taken to ensure that only secure and recorded methods of delivery are used given the personal nature of the documents being transported.

Is there any discretion around this given the current pandemic?

Unfortunately, under the current RTW guidance, only the above RTW are considered compliant. In practice, that means that any other type of RTW would not satisfy the requirements to form a statutory defence against the offence of employing someone to work illegally.

The Home Office do have additional guidance for leniency around immigration requirements as a result of the coronavirus situation but at present, this does not cover RTW. Whilst they may expand the guidance to cover it in the future (and we have requested further guidance from them on this point already), we would advise caution for the time-being.

Employing someone to work illegally is generally a strict liability offence and a fully compliant RTW is the only way to be sure of reducing the £20,000 penalty to £0. Should the Home Office deem that you should reasonably have known the individual was working illegally, the penalty rises to an unlimited fine and up to five years imprisonment. Thus it is crucial to have robust systems in place for compliance.

The Home Office do have the option to reduce the penalty where there are mitigating factors but no fully compliant RTW. Usually, they would reduce the penalty by £5,000 for each mitigating factor from the below list of four accepted mitigating factors:

a) where the employer has self-reported the suspicion of illegal working;

b) has conducted a partial RTW;

c) has cooperated with the Home Office on the investigation; and/or

d) has generally robust systems in place for the prevention of illegal working.

Where it is a first offence, it is possible to reduce the penalty to £0. However, if it is not a first offence, the penalty can usually not be reduced to less than £5,000 per illegal worker. It cannot be guaranteed that they would extend their discretion to reduce the penalties for reasons beyond those listed. 

What if a fully compliant check is not possible?

If it becomes impossible to conduct a RTW in a fully compliant way, for example, if couriers are unavailable, you will need to make a business decision on what level risk you are satisfied with.

Because the penalty only becomes applicable should someone later be found to be working illegally, you will not always need to rely on a RTW. Therefore, in some circumstances, it may be reasonable to assume that the individual does have a right to work and cannot be working illegally in the UK. This is a difficult assessment to make however and we would suggest only doing so with the advice of an immigration specialist lawyer.

In addition to the offence of employing someone to work illegally, as outlined above, any penalties for doing so may also affect the company’s Sponsor Licence. It is therefore very important to take all practical steps to ensure that the new employee does indeed have the RTW.

You should ensure you do everything you can to ascertain their RTW and retain records of doing so and then ensure that a fully compliant RTW is done on the first day back to normal face to face working arrangements.

We believe that this should at least form a partial RTW which may be taken into account by the Home Office when assessing compliant at a later date.

Please contact our immigration team if you have any question or require further assistance.

 

Related Item(s): Covid 19 – Coronavirus, Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Naomi Hanrahan-Soar,

Categories hong-kong

Lewis Silkin – A guide to the immigration implications of COVID-19 for UK employers

It is too early to assess the full implications of the spread of COVID-19 for your foreign nationals working in the UK. This document sets out the main immigration law issues you need to be aware of at this stage so you can consider the implications for your business. We will endeavour to keep you updated as the situation develops.

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This document covers the issues listed below, from logistical considerations to Tier 2 and prevention of illegal working requirements:

1. Visa processing issues
2. Visa holders with imminent expiry dates
3. Moving immigration category
4. The cooling-off period 
5. Indefinite leave to remain
6. Advice for Tier 2 sponsor licence holders
7. Implications for EEA/Swiss nationals
8. Right to work checks

 

1. Visa Processing Issues

Applying abroad


As a first step, if you or an employee are outside the UK and applying for a visa to come to the UK, you will need to check if the relevant application centres are open. You can check the latest advice from VFS here.

VFS have announced that priority visa applications for the UK will no longer be accepted by applicants applying from Japan, Indonesia, Australia, New Zealand, Fiji, Papua New Guinea, South Korea, Malaysia, Philippines, Singapore, Taiwan, Hong Kong and Brunei.

Some TLScontact Visa Application Centres are also closed, including the UK Visa Application Centre in Paris. Applicants already registered should receive a text message from TLScontact. Alternatively, check the address page of your preferred appointment location.

Any applicants intending to leave the UK to travel to countries such as Australia which are currently requiring all new arrivals to self-isolate should factor this in when they book their appointments at visa applications centres. They will need to clear the self-isolation period before they attend the appointment.

If an applicant has already been granted their visa but they are unable to travel during the 30-day window of their temporary entry clearance vignette they may need to attend a new appointment and apply for a new vignette before they travel. This may be waived for non-visas nationals (countries who do not appear on the visa national list), especially where their Biometric Residence Permit has already been issued and evidence of this can be provided on entry to the UK.

Applying from within the UK

Sopra Steria, the third party contractor that manages in-country biometric appointments, has not announced any closures of their UKVCAS visa processing centres yet. We understand however that some applicants are receiving emails informing them that appointments have been cancelled and rearranged for a later date. Sopra Steria has issued guidance for UK-based applicants with COVID-19 symptoms. Affected individuals should not attend their appointment. Instead, visa applicants must email a dedicated mailbox ‘admin.ukvas@soprasteria.com’ notifying Sopra Steria of the reason they cannot attend. Sopra Steria will refund the application fee and notify the Home Office. Individuals who, following their appointment at a UKVCAS centre, develop symptoms or are diagnosed with COVID-19 must inform Sopra Steria, by emailing the same mailbox.

Lewis Silkin will continue to be an alternative collection location for biometric residence permits for the applications we process. We will therefore continue to receive them and pass them on to the applicants while our office remains open. If there are any changes to this process we will inform you.

2. Visa holders with imminent expiry dates

The travel restrictions that have been imposed by the UK and other countries may result in visa holders being unable to leave the UK before their visa expires. The most recent Home Office immigration government guidance on the implications of coronovirus (COVID-19) released on 27 February 2020 only refers to Chinese nationals and residents of China. However, as COVID-19 has now spread to more than 140 countries, it is highly likely the guidance will be updated to include anyone affected, regardless of nationality.

The Home Office has acknowledged that due to travel restrictions and circumstances outside their control, individuals will face uncertainty in relation to the expiry date of their visas. However, the guidance only offers extensions to Chinese nationals who are currently in the UK with visas expiring between 24 January 2020 and 30 March 2020. These have been automatically extended to 31 March 2020. It is highly likely that this concession will be extended to other nationalities but we do not have confirmation of this yet. 

Further guidance should be issued soon. Non-Chinese nationals in the UK who are normally resident in China can call the special Coronavirus Immigration Helpline and request an extension of their visa if it would otherwise expire between 24 January 2020 and 30 March 2020. Please do contact us if you or an employee is facing this issue.

3. Moving immigration category

The Home Office also announced in their COVID-19 guidance a concession to allow Chinese nationals currently on a Tier 2 (Intra-company Transfer) visa to switch in-country to a Tier 2 (General) visa. Normally such a switch would require a fresh visa application to be made from abroad.

It is to be hoped that the Home Office offers a similar concession for those in the UK in other immigration categories who want to move their status into another category but can only do so from outside of the UK, for example Tier 5 (Youth Mobility Scheme) visa holders who need to leave the UK to apply for a Tier 2 (General) visa. We are pursuing this with our Home Office contacts and will update with more news.

4. The Cooling-Off Period

Employers should consider carefully the situation for Tier 2 visa holders who are currently stranded abroad or requests from Tier 2 migrants who might wish to return to their home country or to travel to any other country to work remotely. If they are unable to return to the UK before their visa is due to expire, they may be caught by the cooling-off period which will prevent them returning to the UK on a Tier 2 visa for 12 months. The cooling-off period does not apply if they are applying for a Tier 2 General visa and their salary is above £159,600, if they are applying for a Tier 2 Intra Company Transfer visa and their salary is above £120,000 or if their original certificate of sponsorship was granted for three months or less. 

We are hopeful the Home Office will offer some discretion but this is not yet confirmed. It is important that this is flagged with employees who could be affected. Please contact us for further guidance on this.

5. Indefinite Leave to Remain

Tier 2 (General) migrants who want to ultimately apply for Indefinite Leave to Remain in the UK are subject to a rule on absences in that they cannot exceed 180 days absence from the UK in any 12-month period. There are some exceptions to this requirement. It is likely that Tier 2 visa holders who accrue absences abroad as they are unable to travel due to COVID-19 will be able to argue that this amounts to an exceptional circumstance but the Home Office has not yet published any formal policy on the issue. It is likely that any policy would extend only to those with travel restrictions imposed by a national government rather than just personal hesitancy. We would recommend in this instance to keep records of flight tickets and other documentation to evidence the absence, which could be submitted at a later stage to support an ILR application.

6. Tier 2 sponsor licence holders

If your business holds a Tier 2 sponsor licence you have certain reporting and record keeping duties in relation to your employees who hold a Tier 2 visa. The spread of COVID-19 and the consequential restrictions on travel could have implications for your sponsor licence duties. For instance, delays to start dates and changes in work location normally need to be reported within 10 working days on the sponsor management system. The economic impact of COVID-19 may also mean that you are having to cut salaries or place employees on unpaid leave, which would be considered as changes in circumstances that need reporting if they relate to Tier 2 workers.
The Home Office has already confirmed in the available COVID-19 guidance that as the current situation is exceptional they will not take any compliance action against employees who are unable to attend their work due to the COVID-19 outbreak, or against sponsors who authorise absences and continue to sponsor employees despite absences for this reason.

This does provide you with some reassurance but is not a blanket guarantee. We would recommend that you seek advice from us if you are unsure of whether a course of action you are considering might impact on your sponsor licence duties. Failure to do so is serious as it can jeopardise your licence and the status of your sponsored workers.
Some particular issues to bear in mind:

  • Under the present Home Office guidance, a Tier 2 migrant can only delay their start date by up to 28 days once their visa has been granted. Due to current travel restrictions, you may have Tier 2 workers who will be unable to enter the UK to start work so their start date will have to be delayed. Any delay to their start date should be reported on the sponsor management system. If their start date does have to be delayed beyond 28 days, please contact us for further guidance. 
  • Many Tier 2 workers will now be working from home as offices encourage remote working. A Tier 2 sponsor normally has to report a change in work location on the sponsor management system within 10 working days. The Home Office allows Tier 2 workers to work from home but we would consider that working from home temporarily in this circumstance, is not a change of work address requiring an SMS report. You should continue to report any other changes, for instance if a sponsored employee is working out of another office abroad. You should also ensure that you continue to be able to monitor attendance at work as part of your other on-going reporting and monitoring duties. 
  • As a Tier 2 sponsor you must have a copy of the migrant’s passport and visa on file. We have set out below some further guidance on how to conduct right to work checks when employees are not able to attend work in person. Please ensure you have a scanned copy of the relevant documents on file and ensure you take a further copy of the original documents once these can be provided.
  • Normally a Tier 2 worker cannot take more than four weeks of unpaid leave a year, according to their normal working pattern. The Home Office guidance requires an employer to withdraw sponsorship if this occurs. The Home Office COVID-19 guidance currently states that sponsors do not need to withdraw sponsorship if this is due to COVID-19 if they consider ‘there are exceptional circumstances’. If you are having to put Tier 2 employees on periods of unpaid leave and are unsure if the circumstances are exceptional, please contact us for further advice.
  • If you are having to consider cutting salaries then this will have implications for Tier 2 workers. A drop in salary has to be reported on the sponsor management system within 10 working days. If a drop in salary takes a Tier 2 employee below one of the salary thresholds for Tier 2, such as the £30K minimum for the visa route, then they will have to make a new visa application. Please seek further advice in these circumstances. 

7. Implications for EEA/Swiss nationals

As the UK has now left the European Union, nationals of the European Economic Area and Switzerland currently living in the UK have until the end of June 2021 to register their status under the EU Settlement Scheme for either pre-settled and settled status. They should continue to apply via the specially designed app available on both iPhone and android devices. Applications for the EU Settlement Scheme can also be made from abroad.
For an individual to qualify for settled status they must not be absent for over 6 months in any 12-month period. There is some discretion for absences up to 12 months for an ‘important reason’ such as sick leave. There is therefore good reason to believe that if you have an EEA/Swiss national abroad who cannot return to the UK there will be some discretion applied if their time abroad takes them beyond the 6-month limit. We would suggest though they take legal advice on this.
The UK is currently in a transition period which will last until the end of December 2020 when free movement arrangements will come to an end. There is a possibility that the transition period may be extended due to the disruption caused by COVID-19. We will provide further advice on this if there is any change to the relevant deadlines.

8. Right to work checks

A right to work check (RTW) will usually require an employee meeting with a new starter in person to check their documents. This may not now be possible. Under the Government’s current code of practice for RTW checks, it is possible to conduct fully compliant RTWs without having to meet with individuals face-to-face in one of two ways: 

a) Remote RTW check for an individual holding a Biometric Residence Permit (BRP) or Pre-Settled/Settled Status under the EU Settlement Scheme

For anyone who has a BRP card or status under the EU Settlement Scheme, it is possible to conduct an online RTW. that the individual starts the process by following the prompts at https://www.gov.uk/prove-right-to-work

First, the individual accesses their online immigration record via the link. They will need to follow the prompts to create a one-time use share code for an employer RTW. They should then provide you as their employer with the share code to use within 30 days of its creation. Please be aware that the Home Office will have a clear audit record of you using this code and exactly when you did so. Thus it is very important you do so correctly, prior to them actually starting work. 

When you login with the code, it will show you the individual’s profile along with what employment they are allowed to undertake on their visa status. You should check the photograph depicted as well as any employment restrictions that are advised on their record. You should also view the person via a live video call e.g. skype or facetime, in order to confirm they are the person depicted, just as you would for a standard face to face RTW. 

Please ensure that you keep a copy of this check. We would suggest a screenshot of the video call open concurrently with the online RTW screen open with their details. You can save this as a hard or soft copy but it should be in an unalterable format, dated and clearly signed or marked by the person taking the check so that it is clear they are an authorised and appropriate employee of the company, taking the check on or before the individual’s first day of employment (in the usual way for a valid RTW). 

b) Remote RTW check for everyone else

For those that do not hold a BRP or EU Settlement Scheme status as above, for example, British nationals, you can conduct the RTW by having them courier you their original current passport and then checking its validity etc in the usual way but via a video call. The same records must be retained i.e. certified dated copies either in hard copy or soft copy. The person conducting the check must see the original document to verify it against the video call of the person. You should continue to bear in mind that only those documents on the Home Office’s RTW checklist are ever acceptable. The list of these can be found at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/774286/Right_to_Work_Checklist.pdf 

If these two options are not possible;

If you are not able to conduct the right to work checks as suggested above then you will not have a statutory excuse from a civil penalty if it were to later emerge that the employee does not have the right to work in the UK.

You will need to make a business decision on what level of risk you are willing to undertake to allow them to start work. One factor to consider is the amount of knowledge you have of their status, for instance if this is a Tier 2 sponsored worker then you will have a high degree of certainty of their status in the UK if you have assisted them with the application. The Home Office COVID-19 guidance does not currently cover right to work checks but it is likely the Home Office will be flexible in light of the circumstances. 
We would recommend that you consult with us as it is wise to be cautious. The penalties for employing illegal workers are strict as you can be fined up to £20,000 per illegal worker. You will also need to keep any reasoning noted on files in case of Home Office audits in the future.

The situation is rapidly changing and this advice will be updated but it is important to consult with us before taking action and to ensure ongoing compliance and best practice during this uncertain period. 

The UK Government Website for updates is GOV.UK – Coronavirus (COVID-19): immigration guidance

The Home Office has also a special “Coronavirus Immigration Helpline”: 
Telephone: 0800 678 1767 (Monday to Friday, 9am to 5pm)
Calls are free of charge.
Email: CIH@homeoffice.gov.uk

Related Item(s): Covid 19 – Coronavirus, Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Joanna Hunt, Naomi Hanrahan-Soar, Stephen OFlaherty,

Categories hong-kong

Lewis Silkin – Increase in the Immigration Health Surcharge

The new chancellor delivered a budget last week that was stock full of crowd pleasing spending promises. Unfortunately, it looks like it will be non-EU (and soon to be EU) nationals and the companies who employ them who will be footing the bill for them, via an increase to the Immigration Health Surcharge (IHS).

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The IHS is a fee levied on individuals from beyond the EU who want to come and live and work in the UK for longer than six months, ostensibly to cover the costs of their usage of the NHS. Introduced in 2015 the fee was set initially set at £200 then doubled in 2019 to £400.

We have known for some time that an increase to the IHS was on the cards as it was specifically promised in the Conservative’s election manifesto. In the budget, the Chancellor duly announced that from October 2020 the IHS will increase to £624 per adult per year. There is a lower rate that will apply to students and their dependants, Tier 5 Youth Mobility Scheme participants and children under the age of 18. Their IHS will increase from £300 to £470.

This increase means that a Tier 2 worker coming to the UK for 5 years will now have to pay a fee of £3120 for the IHS alone. Added to this is the application fee of £1220 and priority processing fees of around £300 if they want a decision in a timely manner. For companies who cover the visa processing costs for their employees, they will have to factor in the Immigration Skills Charge as well which costs up to £5000 for a medium or large company. This means that there will be not much change from £10K for many companies wanting to sponsor a Tier 2 worker.

The problem is that the branding for the Immigration Health Surcharge is misleading; this is not a charge to use the NHS as the Chancellor admits that the funds gathered from it could be used on any number of spending promises. Furthermore the Department of Health and Social Care has found that on average visa holders who are subject to the charge are only likely to cost the NHS £470 a year. The fact that the IHS now dwarfs the costs its supposedly designed to recoup increases the suspicion that it is simply a way of keeping numbers down. In essence, the fear is that the exorbitant fees will dissuade people from using the immigration system to secure their future, or the future of their employees, in the UK.

From January 2021 EU nationals wanting to live and work in the UK will have to pay the IHS as well once free movement has ended.  This will increase the cost burden on companies who need to recruit foreign workers to fill skills shortages. The Government’s decision to increase the cost of the visa process at a time when it should be looking to encourage migration to the UK is risky indeed. Whether French, German or Dutch nationals are willing to pay the high price for a career in the UK when the can work in another European country for free, remains to be seen. 

Related Item(s): Immigration & Global Mobility

Author(s)/Speaker(s): Joanna Hunt,

Categories hong-kong

Lewis Silkin – Budget 2020 – New Kid on the Block

There was a sombre mood to the Budget initially, focusing as it did on measures to help deal with the coronavirus / Covid-19. Clearly the financial outlook is expected to be challenging, and our new Chancellor, Rishi Sunak, made sure to point out that the Office for Budget Responsibility forecasts have not (yet) taken the impact of Covid-19 into account.

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The House of Commons displayed a brief and begrudging unity in response to the issue. As the speech got more politically confrontational though, the house was soon back to its rambunctious and raucous routines. It’s just possible I’ve picked up on the Chancellor’s tendency towards alliteration – after all his budget was full of measures which were sometimes “temporary, timely and targeted” and also “coordinated, coherent, comprehensive”. 

Most notable in the speech were all the spending announcements – not just on Covid-19 but on infrastructure and research and development. Among those headline-grabbing announcements, the tax changes were a little bit more low-key and predictable. So low-key in fact that everyone’s wondering where his money tree is. Nonetheless, here’s a selection of some of the key tax changes for businesses and entrepreneurs.

Extravagant Entrepreneurs’ Relief

As had been heavily trailed by the Government, the current generous regime for entrepreneurs’ relief was always going to be a major target. After making a cogent argument for completely abolishing the relief, the Chancellor pulled back from the brink and said that he was simply reducing the cap. With immediate effect, the lifetime allowance of £10m is reduced to £1m. Because the standard rate of capital gains tax is 20% and the entrepreneurs’ relief rate is 10%, this means that the maximum individual cash value of the relief is down from £1m to £100k.

Anyone who has undertaken recent planning to try to trigger a capital gain before the Budget took effect should also take some advice, as the Budget announcement flagged the government’s intention to legislate against recent ‘forestalling’ activity (artificial transactions trying to accelerate a capital gain in order to avoid tax, as opposed to genuine commercial transactions).

Donald-baiting Digital Services Tax

As announced at Budget 2018, this new tax will go ahead from 1 April 2020 (as originally promised). Under this tax, large digital businesses (search engines, online marketplaces and social media platforms) will have to pay a 2% tax on their revenue derived from UK users. So, for example if Floogle (a search engine I just made up) makes £50m of ad revenues out of UK users, it will pay an annual tax of £1m.

Taxes like these are very controversial because they tax revenues not profits, and they cut across the creaking infrastructure of a global tax system designed more for the 19th Century. They’re also extremely unpopular with the Donald Trump, since it’s US multinationals who are most likely to lose out from these taxes, so we’ll just have to see what happens. The UK has expressed its preference for a considered, global approach and the Budget confirms that we will abandon Digital Services Tax if a global solution is implemented. I’m not holding my breath waiting for widespread multilateralism right now though.

Inscrutable IR35

Much anticipated, we now have definitive confirmation. Changes to the IR35 rules will take effect from 6 April 2020. These rules affect businesses who use freelancers who (as is often the case) provide their services through their own company. In short, the rules put the onus on businesses that use such freelancers to assess whether those freelancers are really contracting in a similar way to employees and (if they are) the freelancer will need to be subjected to PAYE / NICs – in effect, they become a ‘deemed employee’ for tax purposes.

Businesses who make use of such freelancers will need to consider their approach to both existing and new freelancers. Freelancers will also need to gird their loins for some potentially tricky discussions about their tax status.

Stamp surcharge for non-residents

Following last year’s consultation, the Government has decided to go ahead with a 2% stamp duty land tax surcharge for non-UK residents acquiring residential property in England & Northern Ireland (Wales and Scotland having their own devolved taxes). This will come in from April 2021. The design of such tax will be important and further details are awaited.

Personal tax permutations

There were few significant changes in personal taxes, although the Government is raising national insurance thresholds across the board, with a view to aligning the NI threshold with the personal allowance of £12,500 in the future.

All those five-year-olds looking to save for their old age (i.e. when they turn 18) will be pleased to see that the Junior ISA annual saving threshold has more than doubled to £9,000. Adult ISA limits remain unchanged.

Changes to the pension tax system were also expected (and there was even some discussion of a dramatic move to flat-rate tax relief rather than the current system which grants higher tax relief to those with higher incomes). The eventual announcements – which take effect from 6 April this year – were less dramatic. The threshold at which the pensions annual allowance starts to taper down has been raised from £150,000 to £240,000. This is ostensibly to alleviate some of the perverse results experienced by doctors who breached the allowances by working longer hours and suffered significantly. But it’s also – in effect – a tax break for a much wider group. Very broadly those with incomes between £150,000 and £300,000 stand to benefit. Those with incomes above £300k could lose out, because the annual allowance now tapers down to a minimum of £4,000 per annum rather than £10,000 per annum. More welcome was the announcement of a review of how pension tax relief works (or more accurately: doesn’t work) for low-earners. However, these all feel like sticking plasters for a pension tax relief system which distributes its benefits very oddly.

Miscellaneous Measures

A selection of other highlights included:

  • Recognising the particular challenges faced by the high street and local businesses (even before Covid-19 came along) the Chancellor announced a number of discounts to business rate for smaller retail businesses, pubs, local newspaper and standalone public lavatories.
  • The Immigration Health Surcharge for non-EEA nationals applying for limited leave of more than 6 months is being raised from £400 to £624 per year. There are some exemptions and concessionary rates for (e.g.) students and children. These charges are expected to apply to EEA nationals post-1 January 2021.
  • Lots of changes to vehicle taxes (vehicle excise duty, company car taxation, capital allowances) broadly aimed at increasing the uptake of zero- and ultra-low emission vehicles.
  • The zero-rating of digital books, newspapers, magazines and journals to match their papery counterparts, expected to come in from December 2020.
  • Confirmation that the VAT reverse charge on construction is being delayed to 1 October 2020 – this measure is to combat VAT fraud in the construction sector.
  • Postponed VAT accounting for imports of goods will take effect from 1 January 2021 to alleviate some of the shocks to supply chains that might otherwise arise from Brexit.
  • A review has been announced into the Enterprise Management Incentive (or ‘EMI’) option regime. Details are sketchy but early signs are the government might consider widening it, which would be good news for lots of businesses.
  • R&D tax relief for larger companies is getting a boost from 12 to 13%.
  • A new plastic packaging tax will be introduced from April 2022. It’s intended to hit manufacturers and importers using packaging with less than 30% recycled plastic content. A consultation has been launched on the detailed design.

Related Item(s): Tax, Rewards & Incentives

Author(s)/Speaker(s): Matthew Rowbotham,

Categories hong-kong

Lewis Silkin – UK Government introduces new Immigration Bill to Parliament

The Bill provides the legislative basis for ending EU free movement arrangements in the UK after the end of the transition period, and for recognising the immigration status of Irish citizens in the UK.

Text:

The Government introduced the Immigration and Social Security Co-ordination (EU Withdrawal) Bill to the House of Commons on 5 March 2020, with a second reading on 9 March 2020. For practical purposes it remains unchanged from the Bill that was under consideration by the previous Government last year.

Given that the current Government commands a substantial majority, the Bill is not anticipated to face major obstacles in being passed quickly.

What does the Bill do?

The Bill contains provisions to:

  • Revoke the free movement arrangements EEA nationals and their family members currently enjoy, which enables the Government to bring them within the scope of the immigration system it plans to implement from 1 January 2021
  • Clarify and protect the status of Irish citizens in the UK, enabling them to continue to enter and remain the UK without restriction (including that they will not be required to apply for leave) once free movement arrangements end, unless they are subject to a deportation order, exclusion order or international travel ban
  • Make changes to social security coordination arrangements between the UK and EU after the end of the transition period for those who are not covered by the Withdrawal Agreement, eg tobring eligibility for income-related benefits for EEA/Swiss citizens in line with those for non-EEA nationals and to stop the export of Child Benefit from the UK

When will the immigration changes take effect?

The press release issued by the Government about the Bill states that Immigration Rules will be laid later in the year setting out the arrangements that will apply from 1 January 2021. This would seem to suggest that there may be no white paper published. This course would give the Government the maximum time to consult with stakeholders rather than being locked into specific proposals in advance of publishing the Rules.

Separate regulations will be made to enable people who are eligible to apply under the EU Settlement Scheme (EUSS) to be able to maintain their lawful status in the UK, and to travel to and from the UK during the period from 1 January 2021 to 30 June 2021, which is the deadline for applying under EUSS.

If you would like further information on this development, please contact a member of the immigration team.

Related Item(s): Immigration & Global Mobility

Author(s)/Speaker(s): Andrew Osborne, Kathryn Denyer,

Categories hong-kong

Lewis Silkin – Ireland: Coronavirus: what Irish employers need to know

The Coronavirus outbreak throws up numerous employment law issues, including questions about travel, health and safety, pay and risks of discrimination claims.

Text:

From staff who are advised to self-isolate, to those who are concerned about the risk and are reluctant to come into work, what do employers need to consider?  We have received numerous queries from employers on the implications Coronavirus could have on their business.  This article sets out guidance in response to those queries on how best to respond.

Coronavirus – what is the current situation in Ireland?

Coronavirus has now spread to over 70 countries with the EU risk level designated as “moderate to high”. With the first two cases of Coronavirus in Ireland confirmed in the last week, Ireland remains in a containment phase. Since then, the Health Service Executive has ordered the closure of a secondary school for 14 days, the duration of the Coronavirus incubation period. Google, Twitter and Indeed are the latest employers to ask their Irish based workforce to work from home after an employee presented with flu-like symptoms and there were concerns that they had potentially contracted Coronavirus.

As Coronavirus becomes more widespread, employers should plan for and implement preventative and precautionary measures and take account of the Health Protection Surveillance Centre’s guidance for employers.

Health and safety

Employers have a duty to take steps that are reasonably practicable to ensure and protect the safety, health, and welfare of all their employees at work, including those who are particularly at risk for any reason. Employers should:

  • Conduct a risk assessment to identify risks and hazards to employees in relation to contracting Coronavirus while performing their duties. Employers should be aware when conducting a risk assessment that some employees may be more at risk if they travel frequently or have compromised immune systems (see more detail on this below). Employers can ask employees for information about their health where this is relevant to the workplace, particularly if required to protect the health and safety of others. However, this is a special category personal data and so should be treated confidentially.
  • Implement effective protective and preventative measures and controls to eliminate the identified risks and hazards in order to provide a safe place and system of work. Such measures may include:
    • ensuring hand sanitiser or washing facilities are available to all employees. Some employers may find it necessary to encourage employees to wash their hands or use hand-sanitiser on arriving in the building after using public transport and after coughing or sneezing. Much of the evidence-based advice on preventative measures focuses on good hygiene practices, such as hand washing;
    • displaying posters on “cough etiquette”, hand and respiratory hygiene and safe food practices;
    • regularly cleaning frequently-touched communal areas, including door handles, kitchens, toilets, showers, and hot desk keyboards, phones and desks;
    • educating employees on preventative or precautionary measures that should be taken if they experience Coronavirus symptoms. This may include advising anyone with Coronavirus symptoms (cough, sore throat, fever, breathing difficulties, chest pain) to stay at home, contact their GP and self-isolate (see below for more detail on pay in these circumstances);
    • keeping the situation and guidance from the Department of Health, Health Service Executive and Health Protection Surveillance Centre under review. If the situation worsens, employers may have to take additional measures such as minimising all work-related travel or reviewing what travel is genuinely needed and what could be postponed or replaced with telephone or video-conferencing calls, limiting or banning face to face meetings, postponing or cancelling workplace events or gatherings; and
    • considering allowing vulnerable individuals to work from home, particularly if Coronavirus cases are confirmed near the workplace.

Vulnerable individuals

Current guidance is that Coronavirus can cause more severe symptoms for older people, pregnant women and those with long-term pre-existing medical conditions such as diabetes, heart disease and respiratory or immune problems.

There is currently a low risk of infection for individuals in Ireland, but employers should keep the situation under review. If the outbreak worsens and more cases occur in Ireland, employers should re-evaluate whether the working environment presents a risk of infection to vulnerable individuals.

There is currently no vaccine for Coronavirus (unlike flu), so those at higher risk cannot protect themselves. Where necessary, precautions should be taken such as moving particular employees to a different location or asking them to work from home. Consult with the individual before taking any action.

Employers have specific statutory obligations to take steps to avoid risks to which pregnant employees are exposed as a result of their work. Where it is not possible to avoid such risks by other means, pregnant employees must be offered suitable alternative employment. If it is not possible for the pregnant employee to be moved to other work or where moving them to other work is unreasonable, they may be granted health and safety leave. If granted health and safety leave, the employee must be paid their usual wage for the first 21 days of the leave. If their health and safety leave is more than 21 days, they might be entitled to a social welfare payment if they have enough PRSI contributions. 

Working remotely

As a precautionary measure, some employers have asked employees to remain at home, particularly where there has been potential exposure to Coronavirus. Some employees are already able to work remotely from home and many employers are operating or developing flexible working policies.  Employers in Ireland should consider contingency plans to enable their employers to work remotely if possible and necessary and should consider the following:

  • does their technology support their workforce working remotely;
  • how secure is personal data, confidential information and Intellectual property;
  • are there clear policies regarding working remotely or using a personal device for work purposes; and
  • from a health and safety perspective does the employee have suitable and safe equipment to support remote working?

What about pay?

If an employee is off sick with diagnosed Coronavirus, they will be entitled to the employer’s usual sick leave and pay provisions set out in the contract of employment and the employer’s sickness absence policy. The guidance from the Health Protection Surveillance Centre is for employees not to attend their local GP and instead contact them by telephone if they are suffering from flu-like symptoms. In light of this, employees may not be able to obtain a doctor’s certificate and employers may need to consider making exceptions to their sickness absence policy in instances where sick pay is only paid on receipt of a doctor’s certificate.

If employees are not entitled to sick pay, employers may want to consider paying it on a discretionary basis because staff may otherwise try to return to work while still sick and risk spreading the virus. Employees without any sick pay may be entitled to apply to the Department of Employment Affairs and Social Protection for illness benefit following the sixth consecutive day of illness.

When pay arrangements are not covered under the contract of employment there is no statutory entitlement to be paid in the event an employee is absent from work. The WRC guidance states that this may include an employee who is unable to attend work as a result of precautionary measures taken in line with the advice of the Health Service Executive Advices or Health Protection Services Centre. The WRC’s guidance further states that before ceasing pay, alternative options should be explored with the employee including taking annual leave during a period of self-isolation or agreeing to a period of unpaid leave with employees who do not wish to use annual leave or agreeing to work back hours / days lost.

Employees who self-isolate may be able to work remotely and should be paid in these instances. If not and where the isolation is imposed by the employer, the employee should continue to be paid to reduce the risk of a claim under the Payment of Wages legislation.

Employees may also be able to take paid force majeure leave where, for urgent family reasons, the immediate presence of the employee is indispensable owing to an injury or illness of a close family member (child, husband, wife, partner, parent, grandparent, brother, sister, person to whom a duty of care is owed, a person in a relationship of domestic dependency). The maximum amount of leave is three days in any 12-month period or five days in a 36-month period.

Employees concerned about coming to work

Employers should prepare for situations where, despite the workplace remaining open and safe, certain employees may be reluctant to attend due to fear of infection.

Employers should assess the risk regularly, consulting the Department of Health and Health Service Executive guidance for updates. They should also consider their staffing requirements – it may be possible to allow employees who wish to do so to work remotely or to take holiday.

Employers should, however, be mindful that they might need to require individuals to attend the workplace if other people fall sick and there is insufficient cover. If employers do permit remote working or holiday, they should reserve the right to require workplace attendance on short notice and make it clear that disciplinary action could be taken if a refusal to attend work is unreasonable.

Before taking any disciplinary action, the situation should be discussed with the individual, because it may be possible to allay their concerns in some way. For example, if their real fear is the risk of infection on public transport, it might be possible to adjust their hours to enable them to travel outside rush hour.

If the individual refusing to come into work is a vulnerable individual, employers should tread carefully and may have to be more flexible. If someone has genuine fears about attending work, the stress of being required to do so or alternatively face disciplinary action may itself adversely affect their health.

Refusing to allow employees to stay at home, or disciplining them for not attending work, could potentially lead to legal claims. For example, an employee might try to claim constructive dismissal if there is a genuine health and safety risk from being required to attend work. However, provided employers do not act unreasonably and employees are not placed at undue risk, such claims would be unlikely to succeed.

What if we need to close the workplace or cannot provide work?

Current WRC guidance states that if employers need to close the workplace, work cannot be provided to the employee or remote working is not possible, employers may put employees on a period of lay-off on a temporary basis and cease pay. If the employer is required to lay-off employees on a temporary basis, the employer must explain to the employees the reason for the lay-off in advance of any work stoppage and keep employees informed of the situation during this time. Before an employer can lay off employees, it must check that its contract of employment contains a clause giving it the right to make lay-offs and also states that such period of lay-off is unpaid. If the clause does not state that the period of lay-off is unpaid the employer is on risk of being liable to pay compensation for unpaid wages.

In the absence of express provisions permitting the imposition of a period of lay-off, an employer may also rely on any relevant custom and practice to make lay-offs in the workplace.  If this is not possible, an employer will need to secure the express agreement of employees to the proposed lay-offs.

If the workplace is open but the employee is unable to attend work due to public transport ceasing, unless the contract or custom and practice provides otherwise, the employee may not be entitled to pay. During previous adverse weather events in Ireland, agreed practices were put in place where employees continued to be paid for short closures.

Race discrimination

Employers should be aware of the risks of direct and indirect race discrimination claims as well as potential claims for racial harassment in connection with Coronavirus in the workplace. There have been news reports of Asian people (or those who are mistaken as such) being racially abused in connection with the outbreak

Employers may be vicariously liable if their employees racially harass colleagues, even if the employer does not know and would disapprove of such behaviour.  Employers may be able to avoid liability if they can show that they took “all reasonable steps” to prevent employees behaving in such a manner. Taking reasonable steps might mean having well-publicised diversity and harassment policies and educating and training all staff on the issue. Managers must be trained about their responsibility to identify and prevent discriminatory behaviour. Reasonable steps may also mean initiating disciplinary action if necessary, to address the conduct of an employee.

Any request not to attend work should be related to potential exposure to Coronavirus taking into account any relevant guidance and should apply to all staff regardless of nationality or ethnicity.  Treating staff of particular ethnic origins differently could give rise to claims of direct race discrimination.

Preventing personal travel to infected areas may indirectly discriminate against certain employees – such a ban might disproportionately affect a cohort of employees of a particular ethnic origin. It is a defence to a claim of indirect discrimination that the action is a proportionate means of achieving a legitimate aim.  Protecting the health and safety of all staff would be a legitimate aim, but an absolute travel ban might be disproportionate in the current situation, given that those staff could be required to take extra holiday to self-quarantine at home after returning.

Asking staff who have recently travelled to infected areas not to attend work during the incubation period might be indirectly discriminatory if it affects more staff of ethnicity than others. This would, however, most likely be justified as a proportionate means of achieving a legitimate aim.

Immigration

The Department of Justice and Equality has stated that it is examining the immigration position of Chinese nationals currently in Ireland who require an extension of their permission as a result of the Coronavirus outbreak. The Department is liaising closely with the Health Service Executive and monitoring the situation and will adopt a pragmatic approach in relation to persons whose permissions are coming to an end.

The Department has also continued with planned citizenship ceremonies as scheduled.

Final thoughts

As the Coronavirus outbreak continues to evolve, further employment law issues may arise and employers should monitor the situation closely and keep guidance from the Health Service Executive under review.

We will continue to update you in light of the changing situation. Please get in touch with your usual Lewis Silkin contact.

For issues to consider for employers in the UK, please see our guidance here and absence from work and entitlement to pay table here.

Related Item(s): Dublin, Irish employment law, Covid 19 – Coronavirus

Author(s)/Speaker(s): Declan Groarke,

Categories hong-kong

Lewis Silkin – Ireland: Coronavirus: what Irish employers need to know

The Coronavirus outbreak throws up numerous employment law issues, including questions about travel, health and safety, pay and risks of discrimination claims.

Text:

From staff who are advised to self-isolate, to those who are concerned about the risk and are reluctant to come into work, what do employers need to consider?  We have received numerous queries from employers on the implications Coronavirus could have on their business.  This article sets out guidance in response to those queries on how best to respond.

Coronavirus – what is the current situation in Ireland?

Coronavirus has now spread to over 70 countries with the EU risk level designated as “moderate to high”. With the first two cases of Coronavirus in Ireland confirmed in the last week, Ireland remains in a containment phase. Since then, the Health Service Executive has ordered the closure of a secondary school for 14 days, the duration of the Coronavirus incubation period. Google, Twitter and Indeed are the latest employers to ask their Irish based workforce to work from home after an employee presented with flu-like symptoms and there were concerns that they had potentially contracted Coronavirus.

As Coronavirus becomes more widespread, employers should plan for and implement preventative and precautionary measures and take account of the Health Protection Surveillance Centre’s guidance for employers.

Health and safety

Employers have a duty to take steps that are reasonably practicable to ensure and protect the safety, health, and welfare of all their employees at work, including those who are particularly at risk for any reason. Employers should:

  • Conduct a risk assessment to identify risks and hazards to employees in relation to contracting Coronavirus while performing their duties. Employers should be aware when conducting a risk assessment that some employees may be more at risk if they travel frequently or have compromised immune systems (see more detail on this below). Employers can ask employees for information about their health where this is relevant to the workplace, particularly if required to protect the health and safety of others. However, this is a special category personal data and so should be treated confidentially.
  • Implement effective protective and preventative measures and controls to eliminate the identified risks and hazards in order to provide a safe place and system of work. Such measures may include: 
    • ensuring hand sanitiser or washing facilities are available to all employees. Some employers may find it necessary to encourage employees to wash their hands or use hand-sanitiser on arriving in the building after using public transport and after coughing or sneezing. Much of the evidence-based advice on preventative measures focuses on good hygiene practices, such as hand washing;
    • displaying posters on “cough etiquette”, hand and respiratory hygiene and safe food practices;
    • regularly cleaning frequently-touched communal areas, including door handles, kitchens, toilets, showers, and hot desk keyboards, phones and desks;
    • educating employees on preventative or precautionary measures that should be taken if they experience Coronavirus symptoms. This may include advising anyone with Coronavirus symptoms (cough, sore throat, fever, breathing difficulties, chest pain) to stay at home, contact their GP and self-isolate (see below for more detail on pay in these circumstances);
    • keeping the situation and guidance from the Department of Health, Health Service Executive and Health Protection Surveillance Centre under review. If the situation worsens, employers may have to take additional measures such as minimising all work-related travel or reviewing what travel is genuinely needed and what could be postponed or replaced with telephone or video-conferencing calls, limiting or banning face to face meetings, postponing or cancelling workplace events or gatherings; and
    • considering allowing vulnerable individuals to work from home, particularly if Coronavirus cases are confirmed near the workplace.

Vulnerable individuals

Current guidance is that Coronavirus can cause more severe symptoms for older people, pregnant women and those with long-term pre-existing medical conditions such as diabetes, heart disease and respiratory or immune problems.

There is currently a low risk of infection for individuals in Ireland, but employers should keep the situation under review. If the outbreak worsens and more cases occur in Ireland, employers should re-evaluate whether the working environment presents a risk of infection to vulnerable individuals.

There is currently no vaccine for Coronavirus (unlike flu), so those at higher risk cannot protect themselves. Where necessary, precautions should be taken such as moving particular employees to a different location or asking them to work from home. Consult with the individual before taking any action.

Employers have specific statutory obligations to take steps to avoid risks to which pregnant employees are exposed as a result of their work. Where it is not possible to avoid such risks by other means, pregnant employees must be offered suitable alternative employment. If it is not possible for the pregnant employee to be moved to other work or where moving them to other work is unreasonable, they may be granted health and safety leave. If granted health and safety leave, the employee must be paid their usual wage for the first 21 days of the leave. If their health and safety leave is more than 21 days, they might be entitled to a social welfare payment if they have enough PRSI contributions. 

Working remotely

As a precautionary measure, some employers have asked employees to remain at home, particularly where there has been potential exposure to Coronavirus. Some employees are already able to work remotely from home and many employers are operating or developing flexible working policies.  Employers in Ireland should consider contingency plans to enable their employers to work remotely if possible and necessary and should consider the following:

  • does their technology support their workforce working remotely;
  • how secure is personal data, confidential information and Intellectual property;
  • are there clear policies regarding working remotely or using a personal device for work purposes; and
  • from a health and safety perspective does the employee have suitable and safe equipment to support remote working?

What about pay?

If an employee is off sick with diagnosed Coronavirus, they will be entitled to the employer’s usual sick leave and pay provisions set out in the contract of employment and the employer’s sickness absence policy. The guidance from the Health Protection Surveillance Centre is for employees not to attend their local GP and instead contact them by telephone if they are suffering from flu-like symptoms. In light of this, employees may not be able to obtain a doctor’s certificate and employers may need to consider making exceptions to their sickness absence policy in instances where sick pay is only paid on receipt of a doctor’s certificate.

If employees are not entitled to sick pay, employers may want to consider paying it on a discretionary basis because staff may otherwise try to return to work while still sick and risk spreading the virus. Employees without any sick pay may be entitled to apply to the Department of Employment Affairs and Social Protection for illness benefit following the sixth consecutive day of illness.

When pay arrangements are not covered under the contract of employment there is no statutory entitlement to be paid in the event an employee is absent from work. The WRC guidance states that this may include an employee who is unable to attend work as a result of precautionary measures taken in line with the advice of the Health Service Executive Advices or Health Protection Services Centre. The WRC’s guidance further states that before ceasing pay, alternative options should be explored with the employee including taking annual leave during a period of self-isolation or agreeing to a period of unpaid leave with employees who do not wish to use annual leave or agreeing to work back hours / days lost.

Employees who self-isolate may be able to work remotely and should be paid in these instances. If not and where the isolation is imposed by the employer, the employee should continue to be paid to reduce the risk of a claim under the Payment of Wages legislation.

Employees may also be able to take paid force majeure leave where, for urgent family reasons, the immediate presence of the employee is indispensable owing to an injury or illness of a close family member (child, husband, wife, partner, parent, grandparent, brother, sister, person to whom a duty of care is owed, a person in a relationship of domestic dependency). The maximum amount of leave is three days in any 12-month period or five days in a 36-month period.

Employees concerned about coming to work

Employers should prepare for situations where, despite the workplace remaining open and safe, certain employees may be reluctant to attend due to fear of infection.

Employers should assess the risk regularly, consulting the Department of Health and Health Service Executive guidance for updates. They should also consider their staffing requirements – it may be possible to allow employees who wish to do so to work remotely or to take holiday.

Employers should, however, be mindful that they might need to require individuals to attend the workplace if other people fall sick and there is insufficient cover. If employers do permit remote working or holiday, they should reserve the right to require workplace attendance on short notice and make it clear that disciplinary action could be taken if a refusal to attend work is unreasonable.

Before taking any disciplinary action, the situation should be discussed with the individual, because it may be possible to allay their concerns in some way. For example, if their real fear is the risk of infection on public transport, it might be possible to adjust their hours to enable them to travel outside rush hour.

If the individual refusing to come into work is a vulnerable individual, employers should tread carefully and may have to be more flexible. If someone has genuine fears about attending work, the stress of being required to do so or alternatively face disciplinary action may itself adversely affect their health.

Refusing to allow employees to stay at home, or disciplining them for not attending work, could potentially lead to legal claims. For example, an employee might try to claim constructive dismissal if there is a genuine health and safety risk from being required to attend work. However, provided employers do not act unreasonably and employees are not placed at undue risk, such claims would be unlikely to succeed.

What if we need to close the workplace or cannot provide work?

Current WRC guidance states that if employers need to close the workplace, work cannot be provided to the employee or remote working is not possible, employers may put employees on a period of lay-off on a temporary basis and cease pay. If the employer is required to lay-off employees on a temporary basis, the employer must explain to the employees the reason for the lay-off in advance of any work stoppage and keep employees informed of the situation during this time. Before an employer can lay off employees, it must check that its contract of employment contains a clause giving it the right to make lay-offs and also states that such period of lay-off is unpaid. If the clause does not state that the period of lay-off is unpaid the employer is on risk of being liable to pay compensation for unpaid wages.

In the absence of express provisions permitting the imposition of a period of lay-off, an employer may also rely on any relevant custom and practice to make lay-offs in the workplace.  If this is not possible, an employer will need to secure the express agreement of employees to the proposed lay-offs.

If the workplace is open but the employee is unable to attend work due to public transport ceasing, unless the contract or custom and practice provides otherwise, the employee may not be entitled to pay. During previous adverse weather events in Ireland, agreed practices were put in place where employees continued to be paid for short closures.

Race discrimination

Employers should be aware of the risks of direct and indirect race discrimination claims as well as potential claims for racial harassment in connection with Coronavirus in the workplace. There have been news reports of Asian people (or those who are mistaken as such) being racially abused in connection with the outbreak

Employers may be vicariously liable if their employees racially harass colleagues, even if the employer does not know and would disapprove of such behaviour.  Employers may be able to avoid liability if they can show that they took “all reasonable steps” to prevent employees behaving in such a manner. Taking reasonable steps might mean having well-publicised diversity and harassment policies and educating and training all staff on the issue. Managers must be trained about their responsibility to identify and prevent discriminatory behaviour. Reasonable steps may also mean initiating disciplinary action if necessary, to address the conduct of an employee.

Any request not to attend work should be related to potential exposure to Coronavirus taking into account any relevant guidance and should apply to all staff regardless of nationality or ethnicity.  Treating staff of particular ethnic origins differently could give rise to claims of direct race discrimination.

Preventing personal travel to infected areas may indirectly discriminate against certain employees – such a ban might disproportionately affect a cohort of employees of a particular ethnic origin. It is a defence to a claim of indirect discrimination that the action is a proportionate means of achieving a legitimate aim.  Protecting the health and safety of all staff would be a legitimate aim, but an absolute travel ban might be disproportionate in the current situation, given that those staff could be required to take extra holiday to self-quarantine at home after returning.

Asking staff who have recently travelled to infected areas not to attend work during the incubation period might be indirectly discriminatory if it affects more staff of ethnicity than others. This would, however, most likely be justified as a proportionate means of achieving a legitimate aim.

Immigration

The Department of Justice and Equality has stated that it is examining the immigration position of Chinese nationals currently in Ireland who require an extension of their permission as a result of the Coronavirus outbreak. The Department is liaising closely with the Health Service Executive and monitoring the situation and will adopt a pragmatic approach in relation to persons whose permissions are coming to an end.

The Department has also continued with planned citizenship ceremonies as scheduled.

Final thoughts

As the Coronavirus outbreak continues to evolve, further employment law issues may arise and employers should monitor the situation closely and keep guidance from the Health Service Executive under review.

We will continue to update you in light of the changing situation. Please get in touch with your usual Lewis Silkin contact.

For issues to consider for employers in the UK, please see our guidance here and absence from work and entitlement to pay table here.

Related Item(s): Dublin, Irish employment law, Covid 19 – Coronavirus

Author(s)/Speaker(s): Declan Groarke,