Furlough Support for Employers Continues To Decrease 

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• Furlough Support for Employers Continues To Decrease 

01 September 2020

From 1 September 2020, businesses using the Coronavirus Job Retention Scheme will have to pay ten per cent of their furloughed employees’ wages.

The government will cover 70 per cent of wages, up to a maximum of £2,187.50 a month, which is a reduction from the previous figure of 80 per cent introduced in March.

The financial support scheme is due to end in October, with Chancellor Rishi Sunak confirming that there are, as yet, no plans to extend the scheme. 

You can find out more information on what support is available for employers, and more details on how the Coronavirus Job Retention Scheme will gradually change, here.

Acas Reports Increase in use of Redundancy Helpline, but Confirms Redundancies Should be a Last Resort

 

"Some businesses have found innovative ways to deal with the crisis through restructuring that has allowed them to safeguard jobs in consultation with trade unions. Our advice in this area recommends alternatives to redundancies, which should always be used be a last resort, as well as how to follow the law if it cannot be avoided."

–Susan Clews

Chief Executive, Acas 

Acas, an independent public body that works to improve workplace relationships, has reported seeing redundancy related calls to the Acas helpline increase by over 160 per cent over the past two months when compared to the same period in 2019.

Acas Chief Executive, Susan Clews, commented: 

"At the moment nearly a third of calls to our helpline are redundancy related. The economic impact of coronavirus, alongside fears around the furlough scheme tapering off, has left many employers and their staff concerned about their future livelihoods.

"Some businesses have found innovative ways to deal with the crisis through restructuring that has allowed them to safeguard jobs in consultation with trade unions. 

"Our advice in this area recommends alternatives to redundancies, which should always be used be a last resort, as well as how to follow the law if it cannot be avoided."

Acas’ advice is for employers to properly consult with their staff to seek their views on ideas that can help mitigate the financial difficulties that the business may be facing due to coronavirus. Solutions could include a recruitment freeze, limits on overtime or moving people into other jobs within the business.

Picture: A photograph of a person working at a desk, with a calculator and some paperwork

Article written by Ella Tansley | Published 01 September 2020

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