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What happens when the furlough scheme ends?

Everything you need to know for when the furlough scheme ends.

Furlough

From August 1 2021, until the conclusion of the scheme on September 30 2021, the government’s grant was decreased for the last time to 60%.

Your client has to pay 20% of wages for furlough and will do so until the scheme ends.

Your client will have to think about how to protect their commercial interests. If possible and if work is available, this could mean returning employees to work or letting them work from home.

What you need to consider:

  • Lowering employee hours – if practicable, your client can make structural adjustments to their workforce. This can be reducing employee hours or bringing them back on a part-time basis. Employees must once again agree to this move because it will affect their present contracts’ terms and conditions.
  • Layoffs and short-term work are often regarded as an alternative to compulsory redundancies. This is mainly when there is a decrease in workload, or the financial resources required to fund full-time employment. Where there is a contractual condition allowing employers to do so, employees may be placed on unpaid LOST. In the absence of such a contractual condition, your client will need to establish an agreement with employees; otherwise, it will be in violation of the employees’ employment contracts.
  • If one sector of a firm no longer requires some of its employees, your customer can redeploy them. This can either be temporarily or permanently.
  • Your client should investigate whether there are any other options for reducing the need for redundancies. This should only be a last resort.

Easing back to normality:

Employees may be struggling during this time, which is crucial to remember as mental health awareness continues to make headlines. If possible, provide them with assistance through an employee assistance programme or an equivalent.

Contact us:

Should you have any queries, do not hesitate to contact us on 01618324451 or fill in the form below.

For more information regarding the Job Retention scheme click here.

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