By Karen Thomson, Partner, Head of Payroll Services and People, Armstrong Watson LLP

STAFFING shortages in the hospitality industry have not been helped by the so-called ‘pingdemic’, and while the furlough scheme has been a saving grace for many businesses in the sector, as long as it is in place it continues to cause issues with recruitment.

The Job Retention Scheme ends on September 30, 2021, and from July employers have been required to contribute towards the wages of their furloughed employees. Initially, this was 10 per cent of the 80 per cent total, but the employer contribution has now increased to 20 per cent.

It is hoped staffing levels will also begin to recover as many groups of workers are no longer required to self-isolate if they are identified as a contact of a positive case, with under 18s and the ‘double jabbed’ instead advised to get a PCR test to check if they have contracted the virus.

As the hospitality industry begins to recover, there are some areas employers should consider when it comes to payroll and recruitment:

Sick Pay

Under the Coronavirus Statutory Sick Pay Rebate Scheme, employers can claim back up to two weeks’ SSP paid to current or former employees for coronavirus-related reasons. It is unclear when this will come to an end, but there are some key eligibility points to note, including that an employer must have a PAYE scheme that was created on or before February 28, 2020, and that they had fewer than 250 employees on February 28, 2020.

Apprentices

Apprenticeship schemes in hospitality are very popular and so it is important to understand the NMW/NLW rules if you decide to recruit apprentices. Apprentices are entitled to the apprentice rate (currently £4.30 per hour) if they’re either under 19 years old or aged over 19 years and in the first year of their apprenticeship. They are then entitled to the minimum wage for their age if they are aged 19 or over and have completed the first year of their apprenticeship.

Accommodation

When an employer provides accommodation to an employee, the costs can be taken into account when calculating the NMW/NLW due. If you use the offset rate - currently £8.36 per day or £58.52 per week - this is allowable as a deduction from the pay and will not breach the NMW rules.

For payroll advice and support please contact Karen Thomson by emailing karen.thomson@armstrongwatson.co.uk.