Employers admit lack of confidence over redundancy considerations

Two-fifths of employers have admitted that they are not confident about their ability to make redundancies in compliance with legal requirements, according to the latest research.

The research asked employers several questions over their intentions and confidence about potential redundancies as the Coronavirus Job Retention Scheme (CJRS) tapers down before closing completely on 31 October 2020.

It is estimated that one-third of businesses will cut jobs in the next quarter of 2020, according to data published by the Chartered Institute of Personnel and Development (CIPD).

The research found that 51 per cent of employers are unclear on how the redundancy process functions during and after furlough, with many confused over how redundancy pay is calculated.

The Government recently announced that any worker on furlough leave that is made redundant will receive a payment based on their normal wage, rather than the reduced rate of pay they may have been receiving through the CJRS.

The new legislation also clarifies that statutory notice pay should be based on the employee’s normal wages. This paid notice period varies from one to 12 weeks’, depending on the employee’s length of service.

9.5 million employees have been placed on furlough leave through the CJRS over the past five months, with the impact of the coronavirus pandemic being felt by employers.

At AGS HR, we can advise on all aspects of the challenges you may face, such as returning to work, reviewing employment contracts and redundancy considerations, with easy to use documents and practical advice.

For help and advice, contact our expert team at AGS HR Solutions today to discuss your requirements.