COVID-19 and the Right to Work
qLegal students Jahnavi and Jinhui explore the impact of the pandemic on the right to work and the way in which small business have adapted to the new business landscape.
On the 16th of March 2020, the United Kingdom announced the first national lockdown owing to the outbreak of Coronavirus. The severity and unprecedented nature of the virus necessitated the government to implement novel and stern measures. Notably, the right to liberty, to privacy and family life — enshrined in Articles 5 and 8 of the Human Rights Act — were put on hold. These actions gave rise to a national debate on the government’s ability to circumvent human rights when faced with a global health crisis. Indeed, the country was faced with a tug of war between the freedoms afforded via human rights legislation, and the pressing need to reduce hospitalisations. The effects of COVID-19 are enumerable, and its full impact not yet measurable. It must be kept in mind that the suspension of human rights must be lawful, legitimate and proportionate. The scope of this article will limit itself to some effects the government measures have had on small businesses.
The implementation of the lockdown was initially met with scepticism and some distress. For small businesses, this distress was largely financial. Indeed, businesses struggled to pay rent, sell stock and adapt to the new environment COVID-19 created. The BBC reports the closure of at least 6,000 stores between January and June 2020, and a much greater number of job cuts. The lockdown imposed closure of shops meant that owners had to adapt to the new situations by making their products available online. Even in light of these efforts, the hospitality sector and food shops struggled as the public was apprehensive of purchasing food prepared by eateries because of the new virus.
Rapid innovative response to the crises
In some cases, the re-conceptualisation of business models in response to the challenges posed by Covid-19, has had a positive outcome. For example, the iconic Borough Market located in South London saw its small business and sole traders embark on a successful social media appeal campaign and provide an online shopping experience for customers. This is a good example of the adaptability, ingenuity and creativity demonstrated by small business and start-ups in their struggle to survive, in the wake of Covid-19.
Another way in which businesses adapted to the new landscape created by COVID-19 was procedural. For example, the Right to Work check scheme was significantly adjusted. The scheme required employers to conduct thorough checks before employing new staff, including confirming that an individual is not disqualified from work due to their immigration status. Because of COVID-19, these checks had to be carried out through video calls. Moreover, documents were provided by the prospective employee through scans and e-mail, rather than physically.
This adaptation was only temporary: employers are required to carry out retrospective checks on employees who were hired after the 30th of March 2020. For those employees who required a follow-up Right to Work Check during this period, the check must be carried out within eight weeks of the COVID-19 concession ending. This means small businesses are now potentially able to use smarter ways to achieve immigration compliance for the time being.
Arguably, the most appreciable government measure aimed at businesses and the right to work during the COVID-19 crisis is the Job Retention Scheme (CJRS), better known as the furlough scheme which has been extended until the end of April 2021. The CJRS pays a financial grant to any employer that furloughs its staff instead of letting them go, regardless of the employer’s size. The scheme has evolved since it was first launched. However, under the present terms of the CJRS extension, the government will pay 80% of a worker’s salary, while the employer will have to meet the cost of National Insurance payments and pension contributions.
In spite of these efforts, the economy and the position of business continues to worsen: according to the latest official data, the country is facing a record number of redundancies. Figures from Office of National Statistics have shown that young people have been the hardest hit by mounting job losses, with an unemployment rate three times the national average. Moreover, the situation seems to be worsening. Ruth Gregory, a UK economist at the consultancy Capital Economist, provided an analysis. She stated that further increases in unemployment were in prospect, predicting that the jobless rate would peak at 9% following the end of the furlough scheme this spring. Therefore, small businesses will be able to keep their employees while keeping their loss at a minimum.
The impact COVID-19 has had on small businesses is not yet entirely discernible, and the examples above provide only a small insight into this issue. Nevertheless, the government and small businesses continual efforts and adaptations are unprecedented and unique — an example of the UK society’s resilient nature in times of crisis.
This article was written by Jahnavi Mocherla and Jinhui Wu who are participating in qLegal as part of their Law Masters studies at Queen Mary, University of London. qLegal provides pro bono legal advice to start-ups and entrepreneurs on intellectual property, data protection, corporate and commercial law.
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