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The end of furlough - now what?

The Coronavirus Job Retention Scheme (the Furlough Scheme) is due to end on 30th September, just three short months from now. The big question is whether further financial support will be offered to businesses beyond this date?


There is no guarantee that there will be a further extension and considering the successful vaccine rollout it seems unlikely that it will be extended. With this in mind, employers should give staff notice in writing that the furlough is coming to an end. There is no minimum notice period for furlough, but employers should talk to staff about any plans to end furlough as early as possible and encourage staff to raise any concerns or problems about returning to work. An open dialogue with employees should assist with this process and it’s important that as a company the steps you have taken are recorded.


A period of furlough will end when; the employer/employee ceases to be eligible for funding under the Furlough Scheme, the employer gives the employee notice that their employment will resume on the terms and conditions which applied immediately before their period of furlough started or the employee’s employment terminates for any reason.


Some businesses may find themselves in a position where they have not fully recovered by the end of the scheme and therefore will be forced to consider further cost-saving measures. In such situations, businesses will need to consider all options including short-time working and lay-offs, which are less drastic measures than redundancy. The requirements will be depend on the particular circumstances of the case, including the size and resources of the employer.


If you need tailored advice, get in touch with one of our solicitors. We are here to help both employers and employees.

 

As first seen in Question Time with Fishers Solicitors in the Life Magazines.

 

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