Employers are keen to find out how they can access the Coronavirus Job Retention Scheme since the Chancellor's announcement. At present, there is little information as to how utilise the scheme, but here's what we know so far.
The Coronavirus Job Retention Scheme allows all employers access, whether you are a; sole trader, partnership, Ltd Company or LLP (depending on if they have employees who would have otherwise been laid off during the COVID-19 pandemic. The employee must be sent home and classed as on furlough leave (the measures outlined will be available for backdating to March 1st 2020).
Simple answer, yes. It depends on if the employer has a clause in the contract which allows them the right to introduce lay off, or short time working.
If you do not have such a clause in your contracts, you will then need consent. This is where things get a bit sticky, as if the employees choose to refuse to go on Furlough, the employer has the right to make the employee redundant.
As advisors, our opinion would be to use a shortened version of redundancy selection. Acas has a more in-depth article on how to select employees for redundancy, but the main principles are to choose based on:
This is entirely up to the employer whether they want to top up your wage from the Government backed 80% and fulfil 100% of your wages or not. Although, employees could claim there to be deductions in wages - a claim which an employer may lose. We believe these to be very small chances, but never the less, we advise you to get written consent from the employee to agree terms of Furlough.
As long as a fair process has taken place to determine redundancy, then yes an employer may make their employee redundant.
At the moment (24th March 2020), the government are still setting up a portal for employers, it however, has not gone live yet - we'll update this section when it does.
If you still have questions about the Coronavirus Job Retention Scheme that this article didn't cover, you can find more information on the governments advice article all about COVID-19 support for businesses.
Or you can contact us today for a free consultation: