23 April 2020<\/p>\n\n\n\n
The government\u2019s Coronavirus Job Retention Scheme is currently due to end on 30 June 2020 (having been extended from 31 May). It has provided employers with some important breathing space and there is no question it has saved jobs. But as the end of the scheme draws closer, it is important for employers to start considering their furlough exit plans. <\/p>\n\n\n\n
Here are some key considerations: <\/p>\n\n\n\n
End furlough and bring employees back to\nwork on their previous terms and conditions<\/strong><\/p>\n\n\n\n There is no prescribed mechanism for bringing employees\nback to work, but we would anticipate giving no less than 48 hours\u2019 written\nnotice. In practice, most employers are likely to communicate their plans\nto employees no later than the middle of May<\/p>\n\n\n\n Extend furlough (on the same or revised\nterms) without benefit of the government grant<\/strong><\/p>\n\n\n\n The Coronavirus Job Retention Scheme created a form of\nagreed lay off even where there was no contractual lay-off provision. The\nscheme does not allow employers to compel employees to be furloughed, but it\nenables the payment of a grant where they agree. <\/p>\n\n\n\n End furlough and bring employees back to\nwork on reduced pay but the same hours<\/strong><\/p>\n\n\n\n Employers are likely to use this where they anticipate\nbeing able to return to near normal trading conditions soon, but the restricted\nperiod has created cash-flow challenges making it difficult to pay employees\ntheir full pay without risking the financial security of the business.<\/p>\n\n\n\n End furlough and bring employees back to work on reduced hours and pay<\/strong><\/p>\n\n\n\n This approach will help employers who wish to retain trained employees and\navoid the cash-flow challenges of redundancy costs.<\/p>\n\n\n\n End furlough and bring employees back to work on reduced pay but the same\nhours<\/strong><\/p>\n\n\n\n Employers are likely to use this where they anticipate being able to return\nto near normal trading conditions soon, but the restricted period has created\ncash-flow challenges making it difficult to pay employees their full pay\nwithout risking the financial security of the business.<\/p>\n\n\n\n Offer unpaid (or part-paid) leave or sabbaticals <\/strong><\/p>\n\n\n\n This is likely to be considered by employers who want to retain all their\nemployees (e.g. because they are highly skilled or trained) but need to \u201cbuy\nsome time\u201d to allow the business return to normal trading conditions. From an\nemployee perspective, this option might be particularly appealing to those with\nschool-age children (assuming schools do not return before September) or those\nwith caring responsibilities.<\/p>\n\n\n\n There are\nunfortunately likely to be many employers who, in the absence of any extension\nto the furlough scheme on the same or similar terms to those currently\napplying, will see no other option but to reduce headcount by implementing\nredundancies. This will trigger individual and possibly collective consultation\nobligations. <\/p>\n\n\n\n With the\nfurlough scheme currently set to end on 30 June, employers need to start\nplanning their next steps quickly. We can help by: working\nwith you to forecast future staffing requirements against your cost base; helping\nidentify options to reduce or defer staffing costs in the short, medium or\nlonger term; identifying the legal and other risks attaching to each option; advising\non EWCs and providing international support; assisting with implementation and\nproviding you with the required documentation; supporting you if you need to\nconsider insolvency proceedings. Contact: yoko.nakada@lewissilkin.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":" 23 April 2020 The government\u2019s Coronavir…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[37,57,154,175,176,177,178,179,180],"class_list":["post-585","post","type-post","status-publish","format-standard","hentry","category-englishlegalarticles","tag-furlough","tag-employer","tag-returntowork","tag-coronavirous","tag-jobretentionscheme","tag-redundancy","tag-unpaid","tag-headcount","tag-forecast"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\tMake redundancies\/headcount reductions <\/strong><\/strong><\/h3>\n\n\n\n