Woodfi nes Solicitors
Employers left facing some difficult decisions
With the Coronavirus Job Retention Scheme drawing to a close at the end of September, many employers are facing some diffi cult decisions. T e scheme, which was introduced in March 2020 and will offi cially come to an end on September 30, 2021, has seen 11.6 million workers have a portion of their wages paid through the programme. T e latest fi gures showed that 1.6 million were
still furloughed at the end of July. Although this is the lowest level since the start of the pandemic, it is estimated that up to one million people could still be on furlough when the scheme expires. The end of the scheme presents several
challenges for employers. Employees who have been off work may require assistance reintegrating into the company and resuming their responsibilities, while diffi cult decisions on redundancies may be unavoidable.
The end of furlough Employers will need to ensure all furlough loose ends are tied up. T e deadline to claim for furlough days in September is October 14, while any amendments will need to be made by October 28. On tax calculations, HMRC advises businesses:
‘Payments you’ve received under the scheme are to off set the deductible revenue costs of your employees. You must include them as income when you calculate your taxable profi ts for Income Tax and Corporation Tax purposes’.
Welcoming workers back Companies welcoming employees back might need to make arrangements for their gradual reintegration into the workplace. Employees who have been absent may require training, which may involve being brought up to speed on any processes that have changed, including new COVID-19 protocols.
Employers might also need to organise the safe
return of workers to the offi ce or expand remote working capacities. T ose favouring an in-person approach have been warned by the Equality and
30 ALL THINGS BUSINESS
Natasha Moore Chartered Legal Executive Woodfi nes Solicitors
Human Rights Commission and the Chartered Institute of Personnel and Development, that so-called ‘no jab, no job’ policies are likely to be unlawful as they might discriminate on the basis of disability, or religious or philosophical belief.
A chance to be flexible If a full return to work (remote or physical) for all previously furloughed employees is not possible, employers could look at other solutions to avoid redundancies. One option is to ask employees to reduce their hours or take unpaid or part-paid leave. Employers should be attentive to the needs of employees and
prepared to make reasonable adjustments. Employee wellbeing, including mental health, fi nancial health and wellbeing, will also need to be considered.
Last resort Sadly, the end of the Job Retention Scheme will inevitably mean some businesses cannot aff ord to take all of their workers back. Employers with no alternative but to make staff redundant will need to ensure that they follow the redundancy process correctly. T e government states: ‘When employers are making decisions
about how and when to end furlough arrangements, equality and discrimination laws will apply in the usual way.’ Employers should not delay in deciding their next steps. It is important to start talking to staff as soon as possible.
We are here to advise you at this complicated time. Anyone needing help can call Woodfi nes Solicitors on 0344 967 2505 or email employmentlaw@woodfi
nes.co.uk
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