Please see today's bulletin. This contains additional guidance on the Coronavirus job retention scheme.
The government will now cover the employer national insurance and minimum auto-enrollment pension scheme contributions employers pay on the wages they must pay their furloughed staff, saving businesses an extra £300 a month for each employee – on top of the wages covered under the scheme. Those furloughed can volunteer for the NHS without risking their pay.
There is also guidance on changes to insolvency law to help companies keep trading while they explore options for rescue and a suspension of the wrongful trading provisions.
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Government amends insolvency law to help companies keep trading while they explore options for rescue
Under the plans, the UK’s Insolvency Framework will add new restructuring tools that mirror the USA’s Chapter 11 procedure, a well-established model adopted by countries around the world. This includes:
The proposals will also include key safeguards for creditors and suppliers to ensure they are paid, while existing laws against fraudulent trading and the threat of director disqualification will continue to act as an effective deterrent against reckless misuse of these new measures.
Wrongful trading provisions
The Government will also temporarily suspend the wrongful trading provisions to give company directors greater confidence to use their best endeavours to continue to trade during this pandemic emergency, without the threat of personal liability, should the company ultimately fall into insolvency.
The proposals will also include key safeguards for creditors and suppliers to ensure they are paid, while existing laws against fraudulent trading and the threat of director disqualification will continue to act as an effective deterrent against reckless misuse of these new measures.
In addition, while laws against fraudulent trading and director misconduct will continue to provide a deterrent against poor practices, wrongful trading provisions in the Insolvency Act will be temporarily suspended specifically to give confidence to directors to continue trading without the threat of personal liability, should the company ultimately fall into insolvency. Find out more here.
Government to ease regulations to ensure hand sanitiser and personal protective equipment reaches NHS staff more quickly
Government is easing administrative requirements and barriers to imports without compromising on safety. By easing regulations, new suppliers and businesses that produce ingredients for hand sanitiser will be able to bring their products to market in a matter of days. Efforts to boost availability of essential supplies include:
Find out more here.
Further details of Coronavirus Job Retention Scheme announced
New guidance on Coronavirus Job Retention Scheme has been published. In a move that could save businesses an extra £300 a month for each employee under the scheme, the government will now cover the employer national insurance and minimum auto-enrollment pension scheme contributions employers pay on the wages they must pay their furloughed staff – on top of the wages covered under the scheme. Those furloughed can volunteer for the NHS without risking their pay.
Guidance for employers on the Coronavirus Job Retention Scheme can be found here whilst guidance for employees can be found here.
Requests for Business Intelligence and Assistance
Help us reach businesses to urgently raise awareness of available support
We need your help to reach businesses across the UK to urgently raise awareness of the new coronavirus government Business Support campaign and the assistance available. A new toolkit includes content and messaging for you to share on your social media, websites, internal channels and newsletters to amplify campaign messages. The toolkit will help ensure all businesses have the best and most up to date information on the support that is available to them in a fast-moving situation.
Business Intelligence: share the impact Coronavirus is having on your organisation
We welcome information from businesses on impacts across supply, demand and labour markets, actions to address these impacts, and any gaps in the Government response from your perspective. Please send your intelligence to intel@beis.gov.uk. We are aware that individual company information may be commercially sensitive, and it will be treated accordingly. Please note that this inbox is only for receiving intelligence and does not provide business advice.
Department for Business, Energy and Industrial Strategy
Business Intelligence and Readiness Directorate
29 March 2020
