One in three employers expected to make redundancies between July and September
According to a recent survey, one in three employers are expected to make some staff redundant from between July and September 2020.
Figures shared by the BBC Freedoms of Information have also revealed that employers planned more than 300,000 redundancies in June and July, amidst the Covid-19 pandemic.
The Furlough Scheme
Since August, the level of Government grant provided through the Coronavirus Job Retention Scheme (CJRS) has gradually tapered down.
In October, the furlough scheme, which temporarily pays the wages of many workers, will end. Understandably, this has ignited worries over more job cuts towards the last quarter of 2020. One-third of businesses are estimated to make redundancies, according to data published by the Chartered Institute of Personnel and Development.
A spokesperson for the Government said: “We are continuing to support livelihoods and incomes through our Plan for Jobs to ensure that nobody is left without hope or opportunity. This includes a £1,000 retention bonus for businesses that can bring furloughed employees back to work.
“We are also creating new roles for young people with our Kickstart scheme, creating incentives for training and apprenticeships, and supporting and protecting jobs in the tourism and hospitality sectors through our VAT cut and last month’s Eat Out to Help Out scheme.”
Redundancy considerations
From the number of notifications made by firms and the numbers of jobs that were already at risk, this is an indication that a large number of people will be made redundant. Although, as employers planning less than 20 redundancies will not need to notify the Government, the figures will be higher.
Recent research found that 51 per cent of employers are unsure how the redundancy process works after furlough, leaving them worried about making redundancies in agreement with the legal requirements.
Rather than the reduced rate of pay employees may have been granted through the CJRS, the Government stated that any worker on furlough leave that loses their job will receive a payment that is based on their usual wage. Statutory notice pay should be based on this too and the period depends on the employee’s length of service.
How AGS HR can help
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.
