The End of Furlough
The End of Furlough
Today is the 30th September 2021, the end of Furlough.
An unprecedented scheme that has covered the wages of millions of workers in the UK for 19 months. The vast proportion of that period being covered almost entirely by the Government without employer contribution.
Its fair to say it has changed the face of the UK labour market. Extended periods out of work but paid has been cited as a reason for low morale, unwillingness to work in low paid/low skilled jobs and a reluctance to return to work. Indeed, in some quarters it has been blamed for the staffing crisis in sectors such as hospitality and care.
The headlines today focus on the end of the financial support and what that might mean for the estimated 1.6million people still on furlough. Redundancies are likely to be unavoidable and by default the number of employment tribunal claims are likely to rise.
Employers need to be mindful that the end of furlough is not a prompt to hand out a P45. If you do not have a job for an employee to return to or are looking to restructure as a result you must still engage in consultation. The end of furlough in itself is insufficient as a sole reason to dismiss an employee.
Remember, if you are making more than 20 people redundant you are required to implement Collective Consultation with minimum periods applying to the consultation period.
Redundancy is not always a straightforward process, and it is important to recognise that you are not simply dealing with statistics and financials, but also people. People who have mortgages, families, commitments, and responsibilities. Redundancy can be one of the most difficult experiences someone will go through, and it is important to ensure that the consultation is genuine, engaging and recognises the impact that it may have on someone.
If you are considering redundancies we have precedent packs to help you on your way, with standard letter templates and meeting guides.
