FIND OUT MORE ABOUT FURLOUGH AND HOW TO APPROACH REDUNDANCY BY WATCHING THE EVENT BACK
West Midlands based independent law firm Wright Hassall held an exclusive masterclass for Made in Group members to discuss furlough and the impact on business. Expert and Partner at Wright Hassall Suki Harrar also discussed things to consider when thinking about redundancy.
Since April 2020, the government has implemented a furlough scheme that has helped businesses stay open during the pandemic. This saw many employers utilize the scheme, as the government pays 60%-80% of an employee’s wages if a business decides their service is not required for a certain amount of time. With the furlough scheme coming to end on 30th September, what do manufacturing businesses need to consider before it does?
During the presentation Suki covered:
- Furlough and the end of the scheme
- The changes to the scheme in August and September 2021
- The final phase and what it may mean for employers
- Furlough and statutory redundancy
- Furlough and contractual notice
- Furlough and the impact on businesses
- Redundancy
During 1st - 31st July, employers could still claim 70% of an employer's salary. However as the economy begins to recover, between 1st August - 30th September employers can only claim 60% of an employee’s salary and will have to top this up by 20%. However if an employer is utlising flexible furlough, they would be responsible to pay for the hours an employee usually works. Therefore what does this mean for businesses? It means they will need to continue to pay the salary and will need to have a plan before the scheme ends on 30th September.
With the benefits of furlough reducing, it is essential for employers to start examining their own businesses. If businesses do not have a plan before 30th September it could leave an employer open to employment claims. So what should businesses start to look at? One thing to consider is if workload is still diminished they may need to look at restructuring the businesses or making redundancies.
Redundancy may be something to consider for employers especially if they have discovered that the role is no longer needed within the business. Therefore in order to carry out redundancies whilst an employee is still on furlough, employers must follow the correct procedures.
FIND OUT MORE ABOUT FURLOUGH AND HOW TO APPROACH REDUNDANCY BY WATCHING THE EVENT BACK