The UK government created the Coronavirus Job Retention Scheme in March 2020 to help workers continue to be paid while businesses were closed due to the pandemic. The furlough scheme provided 80% of employee wages up to a cap of £2500 per month. After July 1, the scheme is changing. Here is what you need to know about the UK furlough scheme.

Beginning July 1st, employers were able to bring back employees part time and still receive furlough benefits for the hours not worked. Starting in August, employers will have to contribute to National Insurance and Pension contributions for the hours employees are on furlough, and pay employees for the hours they work. Your payroll team must ensure the proper calculations for NIC and pension contributions based on furlough hours versus worked hours.

As of September 1st, the government will reduce furlough payments to 70% of employee salaries up to a cap of £2187, so employers must make up the 10% difference (or up to £2500) to ensure employees are receiving 80% of their wages. In October, the government contribution will be 60% of wages with a cap of £1875 per month, which means employers will have to contribute 20% of the remaining wages up to a cap of £2500.

The furlough scheme is scheduled to end as of October 31st, so these payroll and national insurance contributions will be changing each month until then. Payroll for your UK employees will be affected for the next several months, so it is important to be aware of the monthly updates, ensure your payroll process can accommodate the changes to wages and contributions, and verify that you are meeting the wage caps and requirements.

If your payroll in the UK is affected by the furlough scheme and you need help navigating the changes, our cloud-based technology and in-country experts can help. Our software updates automatically with the changes, and our team of experts can help with any compliance concerns. Click here to get help for your UK payroll

There have been many important changes to Indonesia Employment Regulations in 2020. Law Number 13 of 2003 elaborates on the labor law of Indonesia, describing conditions for three types of workers, including fixed-term employees, permanent employees, and foreign employees. In Indonesia, employees are distinguished by their length of employment, the nature of their job, and the type of job.

Conditions that Employers Have to Observe
While contracts can be written or oral for permanent employees, contracts must be in writing for fixed-term and foreign employees. Employees must observe the minimum terms of a contract, as stated by the employment law of Indonesia. The terms include:

  • Name, address, and type of business
  • Name, sex, age, and residential address of the employee
  • Occupation or job description
  • Location of where the job is done
  • Total wages and the source of wages to be paid
  • Demands of the job along with the rights of both the entrepreneur and the employee
  • Start date of work and when the contract is valid till
  • Place and date of where the contract is signed
  • Signatures of all parties involved in the agreement.

Trade Unions
Law Number 21 of 2001 states that labor unions will not be officially recognized unless they are registered with the local office of the Ministry of Manpower and Transmigration. A labor union must submit a written registration contract to the local office of the ministry and notify the employer that the ministry has been sent an application. Employers do not have the right to object to this.

The rights of trade unions include:

  • Negotiation of a collective labor agreement with the management
  • Right to represent employees in industrial disputes
  • Right to establish an institution or improve the welfare of fellow employees

The 1945 Indonesian Constitution, Law Number 21 of 1999, and the Labor Law protect employees from discrimination. This includes: Discriminating against employees applying for a job or procuring a standard of living, based on gender, ethnicity, race, religion, skin color, or political preference. Disabled employees must not be treated any differently. Those who are allegedly infected with HIV/AIDS should not face any harsh treatment or bias.
There must also be no discrimination during the training and skill development of employees. Government Regulation Number 8 of 1981 does not allow discrimination between the salaries of male and female employees with the same job.

Maternity Leave
The Labor Law states that an employee is eligible to 1.5 months of maternal leave before giving birth and 1.5 months after giving birth. If an obstetrician recommends further leave from work, an employer must comply. During this time, an employee must receive her full salary and allowance, along with medical reimbursement during her leave. She may also receive additional benefits based on her contract with the employer. The employee maintains the right to breastfeed her baby at any given time, including office hours. To ease the burden, fathers are given a paternal leave of two days, along with the option to avail their annual leave. These holidays can also be availed under exceptional circumstances.

The Indonesian Government has made changes to ensure employees are protected in the workplace and to protect basic rights.

To learn more about global compliance labor laws visit our website

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