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Furlough & Redundancy - tips from a solicitor

View profile for Emma Allen
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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 31 March 2021.  At present, furlough workers across the UK will continue to receive 80% of their current salary up to £2,500. 

30 November 2020 is the last day employers can submit or change claims for periods ending on or before 31 October 2020.

This guidance covers Job Retention Scheme claims for periods up to 31 October 2020 and the extension for periods from 1 November 2020 to 31 January 2021, there are some differences in the scheme. You must ensure that you refer to the correct section for the period you are claiming for. The government will review the scheme in January 2021.

The employer payments will substitute the contribution the government is making ensuring that staff continue to receive 80%of their salary up 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 or call 01530 412 167

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