Life after lockdown and extended furlough

The Government’s Coronavirus Job Retention Scheme (furlough) was introduced in March, with many businesses having acted quickly to take advantage of this scheme. It was announced today (12/05) that it will now run until October, although not in its current format it would appear, and employers will be asked to contribute more from August. Full details are expected by the end of May.

Meanwhile, restrictions are likely to be relaxed allowing people to return to work. Due to the ongoing social distancing requirements, many employers will simply not be able to allow all employees to return to work at the same time. There may be a need to operate on a rotation basis or shift system to enable employees to attend the workplace. There will also be those employees who are reluctant to return to work for fear of infection both within the workplace and on public transport, if they are not able to travel to work by other means. Some employees may not be able to return if they have childcare and other caring responsibilities, especially if schools are not fully re-opened.

For many businesses, the most pressing concern will be the downturn in business and the need to make changes to the workforce. These will include some or all of the following:

• Reduction in pay
• Redundancies
• Removal of benefits
• Short time or reduced hours
• Requiring employees to take holiday at specific times
• Amending employment contracts to reflect changes for the foreseeable future
• Lay off or flexible working
• Salary sacrifice
• Sabbaticals
• Unpaid leave

Many, if not all, of these changes require consultation and consent of employees in order to avoid claims for breach of contract and/or unlawful deduction from wages. The last thing an employer needs at this time is a costly and time consuming employment tribunal claim, which will further hamper the recovery / return to normal process.

If you wish to discuss any of these issues, or indeed require any employment law advice, please contact Paul Grindley at Winston Solicitors LLP paulg@winstonsolicitors.co.uk or call 0113 320 5000