What Next for Employees Following Furlough?

Nigel Targett, Employment Partner at Coole Bevis, comments on the ending of the Coronavirus Job Retention Scheme.

The Coronavirus Job Retention Scheme (CJRS) will end on 1 October 2021, and it is expected that this will have a significant impact on both employers and employees as they adjust to life after furlough.

From 1 October, employers will have to retain those employees who were
previously on furlough and revert to their normal terms and conditions of employment in connection with wages, or otherwise agree a variation
to the employees’ terms and/or wages, or take steps to restructure and reorganise their business including redundancies.

Those employees on furlough have had the benefit of the CJRS throughout the pandemic, but they now face a potential redundancy situation and the next few weeks are a critical and anxious time as there is no further transitional
period and all Government assistance to employers ceased at the end of
September.

It is anticipated that this could lead to employers being required to begin redundancy warning and consultation processes if they need to release employees. There may be a number of reasons to do this including insufficient
demand for their products or services, they do not have funds to retain their
employees, they have too many employees, they wish to reduce costs, they have become more efficient over the pandemic, or just wish to review how their business operates.

If you find yourself facing redundancy and would like to seek advice please get in touch with me to talk through your situation. I can assist with the redundancy process, termination packages and settlement agreements, setting up new businesses, advising on terms and conditions of employment and any disputes which may arise from your employment or its termination.