What’s Happening?
On Friday, the Chancellor announced measures to help business ride out the economic crisis created by Covid-19. An important part of the package is the Coronavirus Job Retention Scheme. The key features of the scheme are:
- If employees are placed on ‘furlough’ leave rather than dismissed
- The government will fund 80% of wages up to a maximum of £2,500 per month
- For any employee on the payroll on 1 March 2020
- Payments will be available from the end of April and backdated to 1 March
- Further details of the scheme will emerge over the next few weeks.
Why is this important?
This significant intervention could and should offer a lifeline to all businesses big or small that would otherwise perish.
What should you do?
Don’t forget to comply with the usual employment law rules. Any changes, whether redundancy, change of hours or placing employees on ‘furlough’ leave require authority in the employment contract. The Scheme says:
- Changing the status of employees remains subject to existing employment law and, depending on the employment contract, may be subject to negotiation (our emphasis)
Lets be honest – employees are likely to agree. But this horrific situation we find ourselves in does not mean that we can disregard the law! And from the Chancellor’s word, we expect the law to be rigorously enforced.
If you need any further guidance, please contact our experienced team of employment solicitors on 0800 2800 421 or email Employment.Alert@trethowans.com to find out how we can help.