COVID 19 – Alternatives to Redundancies?
During these unprecedented times, we are being asked by clients what to do with their employees as business and work slows down. Most clients want to avoid redundancies, retain their staff and support them during this difficult period. In summary the options are:
Part-time working
Employees agree through consultation to reduce their hours of work for a short period to suit the needs of the business. This allows the retention of skilled employees, continue serving clients, reduce costs and ability to ramp up when necessary.
Lay offs
Employees agree through a contractual term or consultation not to attend work for a defined period. The employees remain employed but agree not to receive salary. However, the employee may be eligible for Guarantee Payments of £29 per day for a maximum of 5 days
Furlough Leave
New evolving initiative in direct response to Covid19. The employer places employee on unpaid leave following consultation; and applies to the government for a grant under the Coronavirus Job Retention Scheme of up to 80% of the employee’s wage, up to a cap of £2,500 per month. The employee remains employed and the employer could choose to fund the 20% but does not have to. Further info can be found below:
Redundancies
Really the last resort, the employer terminates the employment relationship following a consultation and dismissal process. The employee is paid for or works their notice along with receiving a statutory redundancy payment
The above is a simple summary, for specific advice and guidance please contact us.
Need Some Help?
Please remember that I am here to help you with all your HR/employment needs, simply reply to this email or call me on 0203 669 2216 and I’ll be delighted to help you.
Kindest regards
Zahir Mo
