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The furlough scheme ends on 30 September 2021. As an employer, are you prepared?

According to estimates from the Office for Budget Responsibility, from March 2020 to the end of September 2021, the cost of furlough will come to approximately £66billion and the government has said that 11.6 million jobs have been supported under the scheme. This really has kept employees’ jobs safe. But what will happen when the scheme comes to an end?

Redundancies

The most recent figures show 1.9 million people were on furlough at the end of June 2021. Of course that number will have reduced as businesses have re-opened but unfortunately, many employees will still be made redundant as businesses will not be able to manage the wage increase or have the work available for everyone to return to work. It’s important to get the process right to avoid costly unfair dismissal claims.

  1. Do you know if you need to consult and if so for how long?
  2. What paperwork is needed?
  3. How much do you need to pay?
  4. Can you make employees work their notice periods?
  5. What about accrued holiday pay?
  6. What if the employee is pregnant or disabled?

With Tribunal claims on the rise as employees have nothing to lose (they can file a claim for free), it makes sense to consider your options and what you may have to do.

Alternatives to redundancy

  1. What about lay-off or short-time working? Is this legally permitted?
  2. Can we move the employee into another role?
  3. How do we agree a reduction in hours / flexible working on a permanent basis?
  4. Can the employee take a career break/sabbatical and if so, how does this work?

 

Get your questions answered quickly with a 1-hour fixed fee consultation, by our highly experienced Employment Law Team for only £294 inc VAT.

In person or by telephone, we can discuss your options and guide you on the way forward.

We will even confirm our advice in writing. Contact us today on 01623 468 468 or 0115 910 5555 or use the enquiry form below.

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