Alternatives to redundancies as furlough winds down
Many businesses may consider making redundancies as the Government’s furlough scheme winds down, but Thursfields Solicitors has highlighted various less draconian options.
The West Midlands law firm, which has offices in Halesowen, Kidderminster and Sedgley, says these measures could enable companies to retain valuable members of staff during the difficult economic period ahead, rather than losing them.
The Coronavirus Job Retention Scheme, which began in March, has paid 80 per cent of furloughed workers’ salaries up to a maximum of £2,500 a month until the end of August, with employers having to make rising contributions in September and October before it ends.
This has led to the National Institute of Economic and Social Research warning that ending the CJRS could send unemployment rates soaring above 10 per cent.
However, Lisa Kemp, an associate director in the employment department at Thursfields, has highlighted six alternatives that businesses should at least consider.
Ms Kemp said: “While redundancy dismissals may be inevitable for some businesses, making sure you think through other potential courses of action first is always an essential part of a fair redundancy process.
“This is especially important at the current time when everyone is adapting to all sorts of change in their lives, and that may mean employees are more willing to accept an employer’s proposals as a way to avoid their dismissal.”
Ms Kemp said that six of the best options to consider were: continuing to furlough staff with reduced terms once the CJRS ends; agreeing an unpaid career break or sabbatical; laying employees off temporarily without pay; implementing short-time working; reduced hours and pay and allowing employees to work elsewhere.
She also pointed out that employers who bring workers back from furlough and retain them in employment until the end of January 2021 will qualify for a £1,000 bonus.
“This is a difficult time for businesses that have had to furlough workers, and it’s important for them to know that there are options available other than redundancy. However, they should seek advice to make sure they choose the best ones and implement them correctly," she added.
