Furlough issues?

Worried about your job after Furlough?

With the scaling down and ending of the Job Retention Scheme in October, many employees that have been subsidised by furlough payments will be worried that when the funding stops so will their job. Many employers face difficult decisions on how to get their businesses back up to speed and may not be ready to start paying full wages for everyone at least not straightaway. This is why the furlough scheme is being scaled back in stages.

Some important dates to be aware of:

From the 1st July employees can go back to work part-time if their employer requires. For example, an employee who usually works Monday to Friday 9-5, could return to work for 2 days per week, which the employer would pay for and the furlough scheme would then cover the other 3 days per week not worked. Any agreement in relation to employees returning to work part time will have to be set out in a written agreement.

From the 1st August employers will be required to pay the National Insurance and Pension contributions for their staff.

From 1st September employers will be required to pay 10% of any furloughed workers salaries and this will increase to 20% in October.

The Furlough scheme will end on the 31st October 2020.

So what rights do you have?

There are two main areas to look at; employees legal rights and the employment contract, together these will cover procedures that employers should take if they wish to make any changes to employees jobs.

Can I be made redundant?

Yes. An employee can be made redundant at any point whilst on furlough or when the furlough scheme ends.

Employees still have the same redundancy rights, including redundancy pay, as before Coronavirus and the correct redundancy procedures must be followed.

Redundancy pay must be calculated using the employee’s pre-furlough salary. The amount of redundancy pay an employee will get is based on their age and how long they have worked for the employer.

Other options?

Prior to making an employee redundant an employer could offer them an alternative job within the company. This may be on different terms as the employee’s last position, for example less pay or fewer hours.

An employee does not have to accept an alternative job, however, it is important to give reasons if they are refusing the job. These could include reduced pay, disruption to family life. If the employer feels an employee does not have a good reason for turning down the job they may be able to refuse to pay redundancy pay.

How can we help?

Nelson Myatt are here to help you, whether you are an employer or an employee, with any employment issues you may face.

We can provide you with advice on the redundancy process, drafting or checking agreements or employment contracts between employers and employees, including agreements for part-time working on flexible furlough.

Email info@nelsonmyatt.com or phone 01492 588200. Do it now so that you are prepared.

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