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Help for Employers in the Hospitality Industry

23 March 2020

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Below is content for a letter we have prepared for one of our clients; please adapt as you think necessary.

We are sorry to confirm that the government has ordered all pubs and restaurants to close from 20th March 2020. What does this mean for employers and employees?

There is a very good web page published by the government for detailed background: 

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

Obviously, the effect of the government announcements is still to work through. But practical steps need to be taken now.

  1. Today we will be varying your employment contract under Government instructions due to Coronavirus (COVID-19).
  2. We will not be working during this period which is expected to last three months or more.
  3. At this stage you will not be made redundant. We are not laying you off work.
  4. CPL will be placing all of you into what is called a “furloughed workers” state from today.
  5. HMRC will reimburse 80% of furloughed workers wage costs, up to a cap of £2,500 per month. HMRC are working urgently to set up a system for reimbursement. We think this will take until end of April and should last for 3 months or until we can re-open.
  6. We believe (but this needs to be confirmed) that we will take an average of your last 16 weeks pay and that this will form the average weekly pay. We have been informed that you will be receiving (once we have registered) 80% of that average income. CPL will be paying this.
  7. We understand that we will be receiving a grant from the local authority to cover wages to be paid from next week, until the scheme above is available.
  8. You will, at this stage, be paid for the hours worked between the period of Wednesday 19th to Friday 21st , next week (to be confirmed).
  9. In addition (to be confirmed) we expect that you will get the balance of the average time you would have worked for the remainder of the normal working week, when we receive the grant from government. Hopefully, this too will happen next week.

Other matters;

  1. Rent: as your job has been furloughed all landlords have been banned from evicting for a minimum of three months; you should consider asking for a reduction in rent or a rent holiday.
  2. Mortgages; as you job is furloughed you may be able to apply for a 3 month mortgage holiday. You will need to repay this in future. We do not know the terms of this holiday or the repayment requirements but you can ask your mortgage company.
  3. If you need evidence of being furloughed you can ask NAME our accountant for a letter of confirmation.
  4. You can email me at any time with questions, concerns or worries. I will try to answer them for NAME

Obviously, as news develops this week the letter may need to be changed or varied. We are endeavouring to help our clients and contacts, but do please be aware that we can accept no liability for any errors or omissions.

Other help for Employers see below

Acas Coronavirus webinars for employers 
Places are available for our free webinars for employers. These events cover:

  • steps that can help reduce the spread of the virus 
  • effective ways of communicating with employees 
  • self-isolating, time off, sickness certification and sick pay 
  • altering working hours, shift patterns and working arrangements 
  • remote working and the use of technology 

Register your place for upcoming events via the links below:

Thursday 2 April 2020, 10.30am - 11.30am   >> register your place
Tuesday 7 April 2020,  10.30am - 11.30am   >> register your place

"KSA Group which owns this site, will help you fix problems in your business. We won't charge for any initial advice or face to face meetings. We speak in English. We will save you money and your precious time.  You can come to any of our offices

"We also follow up any meeting with a full "solutions report" which runs on average to 30 pages valuable free advice!!  No other practitioner offers this service.  In this report we advise on ALL the options and explain them clearly.  We advise on a course of action given the information you have given us ( the more information we have the better we can advise!)"

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