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Furlough & Redundancy - tips from a solicitor
- AuthorEmma Allen
This blog was last updated on 22/05/2020
We will be continuing to update this blog following the government’s advice to keep all information current, with the ever changing circumstances.
The Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme will continue until the end of the October 2020. At present, furlough workers across the UK will continue to receive 80% of their current salary up to £2,500. The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come from the start of August. The Government will announce specific details and information by the end of this month.
From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards their furloughed staff.
The employer payments will substitute the contribution the government is making ensuring that staff continue to receive 80%of their salary u to £2,500 a month.
Whilst this is a mechanism to help reduce redundancy and keep employees employed, inevitably there will be some companies that simply cannot substitute staff wages and redundancy will happen following the need to reduce their workforce.
Are you thinking about making redundancies?
If you are thinking of making redundancies, your employee might be eligible for certain things, including:
- redundancy pay
- a notice period
- a consultation with you
- the option to move into a different job
- time off to find a new job
Redundancy must be selected in a fair way, for example because of your level of experience or capability to do the job.
You cannot select because of age, gender, or if your employee is disabled or pregnant. If you do, this could be classed as an unfair dismissal.
An option could be to offer voluntary redundancy to your employees. It’s up to the employer whether they actually select an employee for voluntary redundancy.
Careful thought and business planning is key. If projection provides that sustainability is not an option, then this process should start sooner rather than later so notice can be given to your employee. The timeframe for notice periods will be contained in your Employment Contract with your employee. There are statutory notice periods should you not have a written employment contact.
Get in touch
If you need further info please email firstname.lastname@example.org or call 01530 412 167