By Dax Keeling, commercial litigation solicitor at Bell & Buxton
At the time of writing, the Coronavirus Job Retention Scheme is to come to a close at the end of October. From November 1 the scheme implemented by the Government will no longer provide financial support in respect of payment of salary to furloughed staff. This leaves employers with important decisions to make regarding the future of those staff who remain employed but who are currently on furlough leave.
Some employers will be able to bring furloughed staff back into their business on the same employment terms as applied pre-COVID-19. In that instance, employers will be required to co-ordinate the reintegration of furloughed staff back into the day-to-day running of the business. This will bring its own tensions and challenges and may require careful handling. The need to manage personnel issues along with the practical, health and safety considerations may be challenging and also time-consuming.
Sadly, some employers will make the decision that they have no choice but to make posts within their organisation redundant. The normal rules and considerations apply when employers decide to go down the route of redundancy, even in the current unusual times. The fact that an employee is on furlough leave should not of itself be the reason for making someone redundant. Employers should follow a fair, transparent procedure and be seen to take a balanced approach when considering making redundancies.
It may also be that some employers find that, if staff are to return work in the coming weeks, the only viable way for this to happen is if staff return on the basis of reduced hours and/or salary. It can be possible to agree new terms of employment (on a temporary or permanent basis) with staff, and it can be possible to effectively impose new terms of employment on staff. There are of course risks involved in taking this approach and there are many traps for the unwary. We may be in uncertain and unprecedented times, and most of us understand that, but the fact remains that requiring an employee to drop hours and/or salary as a condition of keeping their job is an issue that must be handled sensitively.
Whatever decision is to be taken by an employer as we approach the end of the scheme period, plenty of time should be allowed for consideration and implementation for that decision. Preparing for life post-furlough is likely to take weeks rather than days. It will almost certainly need some degree of consultation with staff. Do not leave it too late.
Bell & Buxton provide a redundancy factsheet for employers and are able to provide assistance on any of the issues identified in this article – please email d.keeling@bellbuxton.co.uk to request a copy.
Dax Keeling is the commercial litigation solicitor at Bell & Buxton
d.keeling@bellbuxton.co.uk
0114 2495969
