At the end of last week the changes to the Job Retention Scheme/Furlough Scheme were announced. The new time table means that employers are going to have to start planning now.
10 June – the last date that employers can place employees on furlough.
01 July – flexible furlough introduced – this means that employees can work part time and be furloughed part time. It will be up to employers how the time between the two is to be split.
01 August – Employers will have to pay employee’s national insurance contributions and pension contributions (employers will not be able to reclaim them through the CJRS portal)
01 September – the Government’s contribution will be reduced to 70% of salary up to £2,190. Employers will have to top up to the 80% or whatever was agreed with the employee.
01 October – the Government’s contribution will be reduced to 60% of salary up to £1,875. Employers will have to top up to the 80% or whatever was agreed with the employee.
31 October – the furlough scheme closes
Redundancy collective consultation processes will need to be factored into affordability calculations and time scales when making decisions about life post furlough. If you are intending on making more than 20 employees redundant in a 90 period at a single establishment then you have to ensure a minimum 30 day consultation period before the first redundancy. If you are making more than 100 employees redundant in a 90 day period at a single establishment then you have to ensure a minimum 45 day consultation period before the first redundancy. In both cases if you do not have trade union representation in your business then you have factor in time to elect employee representatives. (Failure to follow collective consultation can result in a tribunal award for each employee of up to 90 days’ gross pay) In both cases you also have to notify the Redundancy Payments Service by completing form HR1 (failure to do so can result in an unlimited fine).
For help and assistance with following fair employment procedures please contact a member of our Employment Law Team on 01384 811 811 or at lawyers@waldrons.co.uk
