This month, our Head of Employment Law, Tina Chander answers your questions on the end of the furlough scheme, the deadlines and things to think about to prepare your business.
Transcript
Please note, this transcript has been automatically generated, so may contain inaccuracies.
Welcome. I'm back for Tina Talks - being locked down with all of you and I hope you've all be safe and well, I am so excited to be back in the office I'm working bubble days in a very covid, secure environment.
I hope those of you that have returned to work are enjoying the atmosphere that you could only really get working in an office and you have settled back in to your commutes.
So, now I'm back. What are we gonna talk about today?
I'm talking about the end of the furlough scheme and I'm talking a little bit about redundancy. But, before I start yapping away remember everyone I do have an email address where you can ask me any questions: tinatalks@wrighthassall.co.uk
If you have any questions? Fire them away - I am back!
Okay, so furlough scheme, the third a scheme came back with a vengeance to help us all through this difficult time caused by coronavirus, this current scheme is available until the 30th off September 2021.
It has numerous similarities to the previous scheme that was first introduced in March 2020 There is a taping down off the scheme up until this July 2021.
Employers, you can claim 80% off an employee's salary up to a cap off £2,500. So, don't forget that there is a cap in place, and you must pay pension contributions.
From 1st July the scheme reduces, therefore, what you can claim from the government tapers down However, you're still responsible for ensuring that the employee receives 80% of their salary, however, so from 1st July, you can claim 70% often employee's salary, but it is subject to a cap off £2,187 50 again you must pay and I on pension contributions.
So, in August and September 2021 you can claim 60%, that's up to maximum of £1,875 - you must top it up by 20% and you remain responsible for and NI and pension contributions. Then 30 September - that's it, the scheme is closes - unless we hear any different.
Employers, you will need to start making some decisions, and I would urge you to make those decisions way before the scheme ends. The reason why I'm asking you to consider now is because on 1st December 2020 the government said employers, you cannot claim contractual statue notice whilst employees are on furlough leave.
So, employees, you have to give consideration as to what you are planning on doing when the scheme ends and you might be considering returning all staff to work you might be considering implemented a redundancy process on I'm going to move on and talk about that.
It's really important that if you're watching this today and you have staff on furlough leave, have a think have now you've got some time as to what you're going to do when the scheme ends on the 1st September 2021.
Okay, so when the scheme ends on September 2021 employers in reality employees should be able to return back to work on resumed the usual contractual salary If you are in a situation where your workload has diminished, the business is just not where it was at, and you don't have enough work for roles, or you need to restructure roles then I would urge you to give that some consideration.
Now, whilst employees on furlough leave, you can commence a redundancy process, but what you can't do, as I said earlier is claim contractual statue The redundancy process is not straightforward if you are doing it by yourself. So, first of all, get some legal advice. If you want advice from me, please contact me, but getting it right will prevent claims. It won't necessarily stop claims because employees do take decisions in relation to redundancy quite personally, but you need to make sure you have followed the correct process on redundancy in following the correct process you can avoid claims being successful.
The first thing you need to do is have a legitimate business reason to place roles at risk of redundancy. You don't need to consider if you are looking at unique roles or you are looking at reducing headcount amongst a number of roles on those particular employees all do the same or like for like work you need to engage in meaningful consultation on. That's a two way dialogue that isn't just listening to an employee ask you questions. You must engage in meaningful consultation so that involves listen to their ideas, considering ways in which you could potentially avoid a role becoming redundant as a business looking at if there are other roles within your organisation that you can present to employees to apply.
Unfortunately, if after two meaningful consultations there is simply no option, then you will be in the unfortunate position and you will have to confirm redundancy. It's really important that you obtain the correct redundancy figures and don't make those sorts of mistakes.
If, for example, employees are on furlough leave and you decided to make a role redundant, then you will have to consider making payment in lieu of notice or asking the employees to return to work to work their notice period because you cannot claim for contractual statutory notice
If employees are dissatisfied with the decision to make their role attendant, then it is very likely you will receive an appeal if after you've received an appeal, they remained dissatisfied on obviously subject to you following a correct appeal process, you may well hear from ACAS on that will be giving you a hint that that employee is potentially going to bring the claim on against you.
As I've said through this Tina Talks a couple of times, seeking advice on the redundancy process is key to avoiding successful claims being made against you. Therefore, if you have any questions on you would like to discuss redundancy please just contact me, I shall look forward to my next Tina Talks back on the couch.
If you have any employment law questions, please just drop me a line.
