The Coronavirus Job Retention Scheme (CJRS) will close on 30 September 2021.
What is the process for ending furlough?
Legally, there is no prescribed procedure for bringing the end to an employee’s furlough period unless you have set this out in a furlough agreement.
You are however required to give employees on furlough reasonable notice that they are required to return to work from either full or flexible furlough or details of any new working pattern, or confirmation that they will return on normal working days/hours. This should be confirmed in writing. Our team can assist you in preparing the required communications so that this process is straight forward for your business.
In making any decisions to end furlough, employers will need to take into account a number of different considerations, including:
- which specific roles and skills are needed in the workplace once lockdown has been lifted
- whether all furloughed staff will be needed back at the same time
- Whether any staff might be kept on furlough because they’re temporarily unable to work, for example, if they’re caring for someone at home or because they’re shielding.
Returning to the workplace
The furlough scheme has helped to cover the wages of millions of people who may otherwise have lost their jobs during the pandemic. However, in spite if this, many businesses will still need to make cuts. As an alternative to forced redundancies, there may be other options available to employers when bringing furlough to an end, such as reduced hours, redeployment or voluntary redundancy.
As a first step, you will need to consult with your employees in advance and consider any difficulties or concerns employees may have in returning to the workplace. As part of our service, we are able to help with these consultations, providing you with the tools to confidently communicate with your staff.
Changes to work patterns
Where you do not envisage any changes to the work patterns and frequency of employees, you may welcome them back by putting in place refresher training and support, making sure that they are up to date with new workplace procedures, particularly health and safety measures.
You may also be faced with several flexible working requests if employees have caring responsibilities. Please see our webinar on handling flexile working request for more guidance on this. https://www.youtube.com/channel/UCI3p1Z5vr49ZxkHs_eLkMcA
If changes are entailed for working hours then again, consultation is necessary and you will need to have a business rationale to provide your workforce so that the are aware of how these changes could affect them.
The types of changes you can implement will depend on the contracts of your workforce but can include:
- Reducing employees’ hours/days of work due to downturn in work.
- Private workplace furlough/lay-off/short-time working.
- Redeployment.
- Hybrid working/staff work from home.
There are of course legal implications with each of these and our team can assist you in making the right choice and providing you with the confidence to execute the process properly.
Redundancies
Unfortunately, sometimes the only way to cut costs sufficiently is to reduce headcount by making redundancies. The end of last year saw the largest spike in redundancies since the financial crisis in 2008. While this has since reduced, a recent study by the British Chamber of Commerce found that nearly one in five companies were considering redundancies as they faced the end of the furlough scheme.
Some employers may have their own written redundancy policy in place which should be followed carefully. Employers with no written procedure should still carry out a fair redundancy process including full information and consultation. Although genuine redundancy situations may be satisfied in current circumstances there still has to be a fair pooling and selection process, consideration of alternatives, notice payments and statutory or enhanced contractual redundancy packages.
In order for any redundancy dismissal to be fair, employers should ensure it is a genuine redundancy situation and a fair procedure should be followed. https://youtu.be/oK-5sAoAl_A
Employers must bear in mind that for any redundancy processes taking place in the last month of the furlough scheme, there are some specific furlough-related points to consider:
- Government guidance does not prevent furloughed employees from being made redundant. However, furlough grants cannot be used to substitute redundancy payments. Redundancy payments should be calculated on the basis of an employee’s pre-furlough salary (and not the 80 per cent reduced rate).
- Furloughed employees are entitled to notice as usual. Employers cannot claim a furlough grant for any employee serving a contractual or statutory notice period
- In deciding on your redundancy selection pool, employers should take the usual approach of identifying those employees carrying out the same or similar work. If you select furloughed employees for the selection pool just because they have been furloughed, this risks the process being unfair, and potentially discriminatory (depending on the reasons staff furloughed in the first instance).
- You should consider how to manage the practical challenges of consulting with employees on furlough, for example, asking them to attend the workplace for meetings or holding meetings virtually.
The Palmers Redundancy Support Scheme
We offer cost-effective solutions, from a choice of three tailored service options, depending on the needs of your business.
These tailored service options will provide you with peace of mind that whatever the redundancy issues you have- either a simple query or a potentially serious dispute– you have fast, easy access to specialist advice and support from a qualified solicitor.
Our team are happy to support you, providing assistance conducting redundancy consultations, on your behalf, leaving you with more time to focus on running your business and on the road to recovery after the effects of the pandemic.
Tailored Service Options
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Starter
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Professional
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| Telephone advice from one of our solicitors
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| Factsheets, guides and template letters
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| Face to face assistance with redundancy consultations | X | √ | √ |
| Training on redundancy situations | X | X | √ |
Contact us now to find out more.