It’s no secret that redundancies are on the rise. As the Government’s furlough scheme begins to be wound down, some employers are finding that the prospect of paying just the National Insurance and pension contribution of their furloughed staff will be too big a cost burden to bear. Consequently, the number of jobs being shed is likely to rise further.
The word “unprecedented” has been in almost constant use during the pandemic to describe the unending wave of new situations and circumstances that we have been confronted by. The furlough scheme, a new concept in itself, has raised its fair share of hitherto, unheard of circumstances and scenarios. Combined with the redundancy situation, we have yet another one....
With the economy and therefore employment, being in such a good place prior to Covid-19, redundancies were few and far between. Zero-hours contracts were relatively new also, and so the idea of making a worker on a zero-hours contract redundant wasn’t ever a consideration; particularly as this would have gone against the very point of having a zero-hours contract in the first place, ie. if there is no work then none is offered, and no pay is due.
Now, as employers look to save costs by making jobs redundant, probably for the first time, zero-hours and casual workers will have to be included in the process.
There is a moral dilemma in making zero-hours staff redundant as well as a legal one. Zero hours and causal workers still accrue rights after all.
The furlough scheme includes zero-hours and casual workers, and pays either an average of workers’ earlier pay or the highest single amount earned over a previous period. Therefore, there is potentially a not insignificant redundancy payment to be paid to redundant zero-hours contract workers as calculations are usually based on the previous 12 weeks earnings.
Strictly speaking, an employer could avoid paying the redundancy payment by bringing his zero- hours contract workers off furlough and then simply not offering them any work. But in some circumstances that doesn’t seem fair and we think it’s potentially open to a Tribunal claim as it might be argued that those workers should have been offered redundancy.
We think the safest approach is to put at risk all employees who fall into the redundancy pool, regardless of their contract type. So for example, if you have a team of ten cashiers made up of five full time and five zero hours staff, (so that you could call on the latter when you expected to be busy), then all ten should be put at risk.
Equally, if you have just a few or a single zero-hours position that bears no similarity to any jobs that are being made redundant, then you may be able to justify bringing these employees back on their zero hours terms.
Whilst the above is sound guidance, as with most issues that have arisen from the Covid crisis, it is best to look at each on an individual basis. So if this raises any questions or if you have doubts about your own situation then we’re available on 01452 331331 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.
Now that flexible furlough has come into effect, we are starting to see more businesses bring workers back into work on a part-time or flexible basis. Most employees are pleased to be able to return to work, even if the new environment seems a little strange. However we have been asked to advise in several cases where employees have demonstrated some resistance to returning to the workplace.
Some of these instances are owing to a genuine fear over welfare, and it’s inevitable that individuals will be concerned for their health or for the health of those they live with who are in recognised vulnerable groups. Some cases though seem to be as a result of employees becoming too comfortable not working; something we’ve heard referred to as ‘furlough coma’. These workers are just looking for excuses to remain on furlough or treat furlough as a holiday.
Throughout the Coronavirus Job Retention Scheme, it’s always been the case that if there is work to be done then employees should be at work to fulfil it if they can do so safely. Enabling home-working has largely helped to achieve this. For jobs that can only be done on-site, in a factory perhaps, then furlough has been the default solution. Now though, flexible furlough presents an excellent opportunity to begin to ease employees back into work on a shift or rota basis and employers should be putting together a plan to achieve this.
Being on furlough should be viewed similarly to being on standby. Workers should be readily available to come into work if they are required or asked to. But, under the circumstances, and with some employees not having done any work for months, a structured and consistent approach will ensure employees are treated equally and fairly.
Here are some pointers on what you might consider:
- Give plenty of notice: It’s best practice to give your employees fair notice that you’ll be expecting them back into work. There may be issues such as childcare that need to be resolved. A week is fair but 48 hours is probably minimum
- Hold a return to work interview: we recommend this for every return from absence and furlough should be no different. Use the meeting to check the employee’s health, mental health and any concerns they have about returning
- Offer re-familiarisation days: Give employees the chance to come in and have a look around so they can acquaint themselves again with the workplace and understand any changes you have made to keep people safe such as one-way systems or work units
- Plan and communicate any rotas or shifts: If you’re bringing people back on a rota or shift basis make sure you’ve worked out who is working with who and clearly communicate when people will be required for work. Remember that if you’re leaving a time window between shifts that staff shouldn’t turn up for work early
Remember too that staff may also have concerns involving their journey to work. You’ll have less control over this but don’t ignore it.
If you require any help or support with getting you employees back to work, either by preparing a plan or through more formal approach towards those showing resistance, call us on 01452 331331 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.
The big story the week was of course the Summer statement from the Chancellor of the Exchequer who set out his spending plan to revitalise the economy as we emerge from the Covid-19 pandemic. With a fiscal stimulus costing billions of pounds, the focus remained very much around job retention and a plan to move on from the furlough scheme.
Amidst a raft of measures which included temporary cuts in Stamp Duty and VAT to support the housing and hospitality sectors, was a sizeable commitment to investment in training. As a training provider we are obviously incredibly pleased to see that the Government has placed so much value on training. However, we must ensure that any such investment isn’t squandered, but properly spent to aid the resurgence of the economy.
What is crucial for organisations as we transcend towards a post-Covid economy, is that they have the right skills in place held by employees who have the qualities that will be needed to survive and thrive in the future. Identifying what those skills needs will be over the next 18 months is key.
A report from Microsoft at the end of April this year suggested that, owing to the effects of Covid-19, we have seen 2 years of digital transformation in just 2 months. Whilst that statistic might be difficult to truly quantify, there is no doubt that we have seen a steep rise in the adoption of some digital technologies. Just look at how we hold meetings now or do our shopping.
Training in digital skills then should be, and is, a high priority. From our own experiences we know that Local Enterprise Partnerships are keen to find solutions for training in digital skills. However what we don’t hear is what those skills explicitly are. Even in a recent report from City & Guilds, reference is only made to ‘basic’ and ‘advanced’ digital skills without any specifics.
Notably, the same report form City & Guilds, ranks Leadership & Management training as second amongst total skills needs across the UK, and when we look at employability in individuals it’s easy to see why.
If we consider again that sudden changes forced upon us by the coronavirus crisis, there are a set of qualities that, in our experience, make an employee more desirable to either recruit, or when redundancies are necessary, to retain. These are:
- Adaptability – The change to working from home has been one of the greatest tests of adaptability
- Resilience – Maintaining output and productivity despite the challenges
- Self-Leadership – Working on one’s own initiative without the need for constant direction or instruction
- Digital Aptitude – A clear and intuitive grasp of digital technologies
Whilst more inherent than learned, Leadership training will help individuals recognise these qualities in themselves and help managers identify them in other people.
Our programme of Leadership and Management training continues from early August. Full funding is still available for businesses in Bristol and Wiltshire. See the full schedule on our website.
For discussion and advice across all aspects of HR and Employment Law at this time, please call us on 01452 331331 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.
The Government advice for workers during the Covid crisis remains that we should continue to work from home wherever possible. We know from our own clients that this is largely being adhered to and YouGov statistics recorded in May show that 38% of the UK workforce were working from home; steeply up from the pre-Covid level of just 7%.
This level of homeworking has prompted much discussion regarding people’s mental health; and rightly so. YouGov recorded increased feelings of isolation amongst all groups in its study, especially males living alone and those in the 18-30 age bracket. Furthermore, 20% of respondents admitted that their mental health had worsened since working from home during the crisis.
Whilst we should all take note of what this means in regard to our duty of care as employers, there is a whole raft of other issues that working from home raises which businesses mustn’t overlook and should probably be taking some sort of action over; especially as homeworking may continue indefinitely for many.
The pandemic has forced homeworking upon us and businesses have done exceptionally well to adapt so quickly, but there are challenges. Simply having an appropriate place to work from can be a huge problem for some and childcare is often cited as a disrupter to efficient working. Not everyone has access to good IT equipment or efficient broadband, both of which may come at the expense of the employee.
And let’s remember that homeworking simply won’t suit everybody. After all, it’s not what most of us signed up to. Some people are simply not cut out for it and rely on their routine of physically going to work and being in the office environment to stimulate their activity.
Perhaps some of the questions a business should be asking right now are what does the organisation need to deliver in the next 12-24 months and what is the most effective and efficient way to enable it to remain competitive in the marketplace. Then it should ask “is homeworking working to deliver this?”. The answer may vary greatly across different industries but there should be some comparability of productivity between how things are now and how they were. Has output increased, decreased, or remained the same; and is that change universal or only applicable to some individuals?
We know that many businesses are seeing at least equivalent, and in some cases, improved productivity since employees started working from home. Advancements in IT and infrastructure have helped to make this possible. For example, call-centres can now operate with a geographically fragmented workforce. But of course, we can only truly compare and hold employees to account if they had targets and objectives previously. If managers struggled or failed to supervise their staff effectively whilst they were at work, managing remotely will be a huge ask.
Cost savings from the departure of rent, rates, heating, lighting and as one person admitted this week, biscuits, will be a significant influence to preserve the status quo for some organisations. But we mustn’t let the longer-term effects of maintaining a work-from-home workforce be obscured by a short-term improvement on the balance sheet.
There are some intangible advantages to having a team in the same workspace. The creativity and problem solving that can be sparked from an impromptu meeting at the water cooler for example. Or the sharing of thoughts and ideas that seems to happen by osmosis across an open plan office. For homeworkers, every meeting must be scheduled so that we’re in front of our screens at a prescribed time to discuss a prescribed agenda, often stifling spontaneity.
One of the reasons some of us may be a seeing an increase in productivity is because the commute to work no longer exists. Employees can be at their desk, or kitchen table, earlier and potentially fresher each morning if they’ve not had to sit in traffic or endure an uncomfortable journey on public transport.
This then leads us to the issue of time management. If homeworking means staff are achieving their tasks more efficiently, should we allow them to finish earlier? And how will that endure if they are expected to attend online meetings late in the day, or indeed in the office? Is there an expectation that homeworking means flexible working, and will homeworkers expect to choose their own hours?
The introduction of a formal homeworking policy is probably overdue for quite a lot of employers. Until now, they have probably got away with some spoken instruction and a ‘play it by ear’ approach. As homeworking becomes more of the norm however, some proper ground rules should be established before bad habits and unrealistic expectations become ingrained.
We’ve provided more questions than answers here and establishing best practice may still be some way in the future, but it’s important that we start the conversation now so that we are ahead of the curve as the future pans out. Our espresso session on Wednesday 8th July will discuss the issues we’ve raised here and more. Book you place at www.hrchampions.co.uk/espresso
For discussion and advice about your own scenario, we’re available on 01452 331331 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.
With the sweltering temperatures making life pretty uncomfortable at times for many of us this week, we would usually expect to see some articles and blogs, including from us, about maximum workplace temperatures. Things are a little different this year and with the new rules and guidelines that Covid-19 has brought to bear, there will be new challenges to add to those we normally have to deal with during any heatwaves.
Some reports have suggested that we should see a reduction of cases of Covid-19 in the warmer weather. However these reports tend to be based on the fact that the transmission rates of most coronaviruses, including the common cold for example, tend to reduce in the summer months. We must wait for statistics for Covid-19, which will be skewed and influenced by the extent to which individuals maintain the measures that have been implemented to restrict its spread.
Of course a large proportion of the workforce in the UK remain on furlough, but as we implement the precautions in the workplace to enable workers to return and remain safe from Covid, we still need to consider their more general wellbeing and physical health; including the implications of hot weather.
As we’ve reported in the past, the Health & Safety Executive does not prescribe a maximum workplace temperature per se, but instead refers to “Thermal Comfort” when discussing employers’ legal responsibilities. In assessing the thermal environment of a place of work, we should consider more than air temperature alone. Air flow and humidity are among other factors to consider, as is the employees’ own clothing, which now might include PPE.
New Health and Safety constraints that require more employees in a much wider range of industries to wear PPE is very likely to have a significant impact on thermal comfort and therefore employee health generally. By their very nature to be a barrier against infection, PPE items such as rubber/plastic gloves, plastic aprons and facemasks will likely become uncomfortable more quickly and require changing on a more regular basis in the warmer weather.
As a solution you might consider rotating jobs amongst staff between those that do and do not require the wearing of PPE where appropriate. Other simple steps we might expect employers to take and which may already be implemented to reduce the spread of Covid-19 include:
- Ensuring airflow through the building is sufficient
- Where possible, open windows and doors or provide fans
- Make drinks readily available and encourage employees to take an extra break
- Consider alternative shift patterns or working hours ie. earlier start and finish times
- Introduce a comfort zone where the temperature can be controlled and allow managed access to it
- Relax the dress code, within reason
- Pay special attention to those at higher risk ie. pregnant or older employees
- Investigate the possibility of alternative working environments. eg. Another office, home, outside
The guidelines to work from home wherever possible will no doubt help, but in addition to ensuring that homeworkers have an appropriate environment to work in, we should also ensure that they feel empowered to take adequate breaks and take steps to remain cool and hydrated.
Let’s not also be side-tracked to ignore that fact that pleasant weather also brings about a rise in sporadic absences that might be viewed with a degree of scepticism. Now more than ever business require their staff to pull their weight and contribute to the best of their ability when there is work to be done. So, if you haven’t already done so, revise your attendance policy to include home working and attendance measures. Be clear, that people are either “at work or not” and whilst working from home there should be clear communication around fitness for work and notification processes.
If you need specific support about any HR and Employment Law Related issues during the Covid crisis, please call us on 01452 331331 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
As more businesses return to work and we draw closer to the winding down of the Government’s Furlough Scheme, employers will be experiencing new challenges in managing and motivating their teams. We have already been asked to support with some staff who have demonstrated reluctance in returning to work. Others are facing logistical issues in maintaining their workplaces as a safe environment and employee wellbeing continues to be a concern for many.
This Government has a fine balancing act to perform. The management of our exit from the Covid crisis will probably be the defining factor of its tenure. Relax restrictions too early and we face a second wave of the virus that puts more lives in danger. Enabling a full return to work too late risks hobbling the economy beyond the point from which a speedy recovery can be made. Today’s announcement that Government borrowing has exceeded GDP, the first time since 1963, has only compounded the pressure.
For employers, with the obvious exception of income and cashflow, the overriding issue is managing the return of workers. Some employees haven’t worked for the entire duration of lockdown, and whilst you might expect many to be chomping at the bit to get back to work, there are others who, for various reasons are less enthusiastic.
Working from home should still be the default position where possible but of course that’s simply impossible for most manual jobs and retail which was allowed back this week. As other sectors return, particularly where customer interaction is involved, we may see more examples of resistance to return to work.
The main reasons that we are coming across for not wanting to come back to work are:
Care – This is largely down to childcare as the return of schools remains uncertain. There may still be an option to furlough employees who are struggling to find childcare, especially where the usual solution would have been a grandparent who is now shielding. Otherwise it’s unpaid parental or dependants leave.
Shielding – If the employee is shielding because they are recognised as being in a vulnerable group then they should be either furloughed, on SSP or unpaid leave. Government guidance has always been that there are no special considerations for anyone living with someone who is shielding so that’s not a reason to stay away from work. In this case unpaid leave is appropriate or even disciplinary action.
Anxiety – Covid-19 remains a threat and we must all stay alert so it’s reasonable that people will feel anxious about potentially exposing themselves to the virus by coming back to work, or even whilst travelling to the place of work. Provided you have carried out your due diligence including workplace and individual risk assessments, this shouldn’t be an argument. You could offer some people lower risk work if it’s available but remember you should be treating everyone equally.
Loving the Furlough life – There will be those that have become accustomed to an easy life and prizing them away to come back to work may prove quite a challenge. Remember that if you have work for staff members to do then it’s okay for you to ask them to come back and do that work. You don’t have to keep them furloughed because that’s what they want. You would be within your rights to withhold pay and probably pursue a disciplinary line if employees continually failed to engage.
In managing employees back to work there isn’t a one size fits all. We’re finding that the situations behind employees not wanting to return can be quite complex and nuanced. Our best advice is to speak to us if you experience any of the above issues yourself. If you need any support please call us on 01452 331331 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
Announcements of job losses have been coming in thick and fast this week, and from some significant UK employers. Names such as Centrica and Bombardier have added their names to those to have already announced swathes of redundancies.
Early announcements of redundancies came largely from the airline industry as international travel ground almost to a standstill as the virus took hold. The effect of businesses such as Virgin Atlantic, Easyjet and Ryanair shedding staff soon affected others down the supply chain including Rolls Royce and BP.
Even as businesses begin to return to work, including a very gradual resumption in the hospitality sector, we can’t deny that such a big dent in the UK workforce will have a dramatic effect on the UK economy. Less of us will have less disposable income as the Government makes adjustments to recoup the cost of the Coronavirus Job Retention Scheme.
Indeed, People Management magazine has this week suggested that as many as one employer in four would be making some permanent redundancies that they attribute to Covid-19.
In our experience, making the decision to cut staff is a gut-wrenching choice for any business owner or senior manager. Nobody wants to put people out of work, however the survival of the business must come first in order to maintain jobs that can be sustained and hopefully put the business in a position from which it can grow stronger again and rebuild.
If and when the time comes to make redundancies, it’s imperative that the process is carried out transparently and equitably; obviously for legal reasons, but also for the welfare and mental health of all concerned. Sitting either side of the redundancy table is always going to be a stressful experience, particularly when the job losses have come about from no act of wrongdoing or poor management.
In all redundancy situations, the key point to remember is that it is positions that are made redundant and not people. Therefore, where a position is identified as being redundant and more than one person is currently employed who can fulfil it, operating a fair selection process is paramount in conjunction with the appropriate consultation period for the numbers being made redundant.
We recommend employees are scored against a ‘selection matrix’ that awards points for each requirement of the position including skills, qualifications, track record and experience. The scoring could include minus points for poor attendance and any disciplinary history. The lowest scores are those who are dismissed.
It’s probably a good time to re-visit this list of key points that we have published previously. These are only to help you steer clear of some of the pitfalls however. If a restructure looks like it’s on the cards, you should speak to us for specific and detailed support.
- Give full and careful consideration to your business case rational and which employee groups are at risk
- It is not an easy process for you or your staff, so getting the communication strategy right, including a consistent message, cannot be overstated
- Remember it is always jobs that are at risk of redundancy, never the person
- You’ll need to formally open a consultation for two to three weeks if less than 20 jobs are at risk
- You’ll need a selection criteria that’s fair AND transparent and stands up to scrutiny
- Conduct meaningful 1-2-1 meetings; preferably face to face and if your using technology, find a platform that allows this
- Employees have a right to representation at all 1-2-1 meetings
- Once consultation is closed and you’re giving formal notice of dismissal hearings, be sure to follow the correct procedure including adequate notice, the right to representation and the right of appeal
- You don’t have to have all the answers on the spot. It’s OK to come back later
- Keep notes of all discussions with staff, and send confirmation
We’re expecting a lot of enquiries for redundancy support over the coming weeks and months so we’re in the process of compiling a number of support packages to help employers through these difficult times.
If you need any support in the meantime please call us on 01452 331331 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
Chancellor Rishi Sunak last week confirmed the details of how the Coronavirus Job Retention Scheme (CJRS), also known as the furlough scheme, will gradually be wound down over the coming months, closing at the end of October.
Whilst the scheme has obviously been a lifeline for many businesses and individuals, with over 7 million employees effectively having most of their wages paid by the Government, it’s clearly not sustainable indefinitely. From next week, we will start to see the effects of changes to the scheme that will include contributions to employees’ furlough pay by their employers.
Despite the CJRS, we are increasingly hearing businesses making redundancy announcements or forecasting job losses. As employers are required to contribute to furlough pay, albeit relatively modestly to begin with, we are sure to see the number of job losses increase as even a small amount of pay may be too much for some businesses to bear.
Here we set out the winding up of the CJRS in a timeline of events:
10 June: Next Wednesday. The last day that employers put employees on the furlough scheme for the first time. The scheme will close to new entrants on the 30th June. Because there is a minimum 3 week furlough period this will be the last day that, in the Government’s words, an employer can furlough an employee for the first time. This is slightly grey but we think that it means anyone who has been furloughed since the induction of the furlough scheme can be furloughed again after June 30.
1 July: Flexible furlough begins. From 1st July, employers can bring employees back to work who have previously been furloughed for any amount of time and any shift pattern. They’ll still be able to claim CJRS grant for their employees’ normal hours not worked. Any working hours arrangement that you agree with your employee must cover at least one week and be confirmed to the employee in writing.
1 August: Employers will have to pay NIC’s and pension contributions of furloughed employees. In other words they will no longer be able to reclaim them through the CJRS.
1 September: The government will pay 70% of wages of furloughed workers up to a cap of £2,187.50 pro-rata’d for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. Our interpretation is that if employers cannot meet these payments, they will not be able to keep staff on the furlough scheme and may need to consider lay-off or redundancy.
1 October: The government will pay 60% of wages up to a cap of £1,875 pro-rata’d for the hours the employee does not work. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500 and again we think these contributions will be compulsory in order to keep employees on furlough.
31 October: Furlough scheme ends.
We should note that this timeline seems to have been put in place without any correlation with what we are seeing regarding the easing of lockdown restrictions. Whilst we would hope that Government departments talk to one another, we haven’t heard anything about a contingency plan should there be a second spike in infections or other problems.
One thing we have learned about the Government during this crisis however is that they can move quickly when they want to so should the worse happen, we would hope that some sort of plan is already being worked on.
There are one or two finer details to iron out regarding the changes to the CJRS, but we’ll be updating our letter templates, available from or COVID-19 toolkit, to reflect the changes including the part-time furlough option, as soon as we have all of the relevant information. In the meantime you can contact us on phone on 01452 331331 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
As lockdown is loosened a little further this weekend, we are starting to see more businesses re-open and staff return to the workplace. The Government has released guidance for which businesses are and are not allowed to open and has published guidance for the safety measures that must be put in place for a variety of working environments. You’ll find links to this information and more on the Government Links page of our website under the Covid-19 section.
As workers return to the workplace we need to remember our duty as employers to provide a safe and acceptable working environment for our employees to carry out their duties. But, as far as Covid-19 is concerned, implementing the Government guidance is just the start.
With such a deadly and transmittable disease to defeat, any relaxation of or failure to uphold the measures that we must put in place could have significant consequences. Not only for staff members catching the virus, but, should the worst happen, there is the potential for a case of corporate manslaughter for negligent directors.
Since the onset of coronavirus, there has been much hype that we are all in this together and that we must all play our part; it’s a good message and remains the case. However, once we are back in the workplace, there will be some responsibilities that will need to be “owned” to ensure that the measures we have initiated are upheld.
Just as we expect other health and safety procedures to be adhered to in normal operations, so should we expect the same of those put in place to manage coronavirus risks. If a builder turned up to work on site without a hard hat, he or she wouldn’t be allowed to work; and it would be the site manager’s job to enforce this. We must take the same attitude with our coronavirus safety.
As you undertake risk assessments and take steps within your business, consider your chain of responsibility and accountability. Individuals will be responsible for their own actions, but it may be someone higher up the chain of command that allows a standard to drop or let’s someone “get away with it” every now and then. There can be no excuses and as you implement measures you should also make it clear what the consequences for failing to adhere to them will be, probably disciplinary action.
We have mentioned in the past that Section 44 of the Employment Rights Act 1996 act allows employees to question the safety of the workplace and keep themselves removed from it if they deem that it puts them in danger. Stringent following of the Government guidelines will negate this but, again, only is they are fully and consistently enforced.
Finally, let’s also remember that the overriding Government guidance remains that if you are able to work from home then you should continue to do. Some employers might prefer to have staff where they can keep an eye on them but instructing staff to come back to work where it cannot be fully justified might be considered as skating on thin ice. Furthermore, should a mini outbreak occur forcing the place of work to be locked-down for even longer, any financial gain in having people back at work will be immediately reversed.
Planning a return to the workplace: is it essential, is it safe, is it mutually agreed? If the work can be done at home and the employee can work from home, the Government guidance is clear the employee should continue to work from home for the foreseeable future.
If the employee needs to return to work as the above isn’t possible then we recommend that a return to the work/workplace assessment is undertaken. If you would like access to these documents please contact us.
We’re continuing to offer advice about all aspects of HR and Employment Law, including those affected by Covid-19. Call us for more information on 01452 331331 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.
How holidays should be managed for employees who are on furlough has remained a subject of confusion pretty much since the outset of the Coronavirus Job Retention Scheme. Without publishing clear guidance, the Government added to the uncertainty by proposing new legislation that enables employees to carry over unused holiday for the next two years.
We have always been confident that this move was specifically to make sure that those who had been unable to take their holiday during the Covid-19 pandemic would not lose it. Specifically, in essential occupations like Doctors, nurses and other key workers whose continued attendance at work has enabled the rest of us to still receive the vital goods and services we need. It was never intended for furloughed workers.
One of the early worries for some employers was that furloughed workers would return to work at some stage and promptly all request holiday at the same time meaning no-one would be at work and the company would not be generating money to pay holiday pay.
We’re pleased to say this needn’t be the case.
Holiday entitlement remains a statutory right so it is not a subject that we should take lightly. However there are rules and regulations already in place that mean we can take an approach to managing the holiday entitlement of furloughed workers that is fair and equitable.
Here are some key principles:
- Employers can, with adequate notice, instruct employees when to take holiday leave
- Employees can be on holiday simultaneously to being furloughed
- Holiday continues to be accrued during furlough
- Holiday should provide a time of rest and recuperation away from work
So, if your employees are furloughed, you are able to tell them to take their holiday during this time. You need to give notice that equates to twice the length of the holiday period; so for a week’s holiday you need to give two weeks’ notice, but that should be easy to achieve in the current circumstances. If you used our furloughed workers designation letter, there is a clause that covers this point.
As furloughed workers are not allowed to undertake work for their employer then it’s fair to say that they can use the time to enjoy rest and relaxation, even if they choose to decorate the house.
A key point however is that any holiday taken must be paid at 100% of the employee’s normal rate of pay rather than the 80% furlough rate. We know many employers are topping up pay anyway, but for those who are not, this is likely to play a significant part when any day of reckoning comes. You will struggle to argue that you enforced holiday to be taken if you haven’t paid for those days at the employee’s full rate of pay.
Note that this rule applies to Bank Holidays too. We are about to enjoy our fourth bank holiday since the CJRS was implemented, so that’s four days you should be paying furloughed workers at their full rate of pay. Failure to do so may result in workers expecting to have maintained those days as holiday.
This covers the main points but we know there are sure to be more specific and nuanced questions that many of you have regarding holiday during furlough. For that we’re available as usual on 01452 331331 or by e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it.