CORONAVIRUS Plan for Business Recovery: Employment Implications 24/7 professional support for business, across employment law, HR, health and safety Amanda Chadwick Date: 18/05/ 05/2020 2020 Run time: Approx 45 mins
The detail il contain ined w wit ithin in t this is w webin inar is is based o on GB and N Northern Irela land emplo loyment le legis isla latio ion. Members in the jurisdictions of Republic of Ireland, Jersey, Guernsey and Isle of Man are asked to please contact the Advice Service to obtain the information relevant to your jurisdiction.
Plan for Business Recovery: Employment Implications Today We Will Cover… 1) Change to terms and conditions 2) Lay off and shortage of work 3) Redundancy
Plan for Business Recovery: Employment Implications What are your options after shutdown? Despite the furlough scheme that is aimed at helping employers retain their workforce • during the challenges caused by coronavirus, it may not be enough for some employers who are looking ahead to the future. A recent poll showed that almost a quarter of employers are faced with the prospect of • making redundancies as they assess the steps they need to take for their business to survive in the longer run. Government guidance on furlough makes clear that employees still have full • employment rights and employers are not released from their legal obligations during this time. Our ability to help a business rebuild comes in many forms and one of these is to guide • them through the redundancy process to ensure they make fair dismissals. Redundancy is a dismissal so is still sensitive to ‘fairness’. Red tape a-plenty.
Plan for Business Recovery: Employment Implications What are your options after shutdown? The Job Retention Scheme, built around furlough, is a scheme the Government have • introduced to all companies to not require people to work but still be paid 80% of their wage/salary (as long as they meet the criteria). This currently is available until the end of June. However, this may not be suitable for all businesses during this time. Businesses may need • to look at options now. Some are still fully operational and need their employees working but may not be able to • fulfil the contract at this time. The situation at the moment may not be temporary and so more permanent solutions need • to be considered. Consideration of business needs after Furlough may be needed. •
Plan for Business Recovery: Employment Implications Flexible Furloughing “Flexible furloughing”, a phrase used by the Chancellor, will be in place from the start • of August. It will support employers to bring employees back off furlough on a part time basis • and still claim a portion of wages from the Scheme so that that the employee still gets 80% pay. Until the end of July, the Scheme will continue unchanged. • Lot of questions on “flexible furloughing” that need answering but we’re told more • info will be out by the end of May. Quote “Further detail will follow by the end of May but I want to assure people one thing • won’t change: Workers will, through the combined efforts of government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500”.
Plan for Business Recovery: Employment Implications Lifting of lockdown restrictions As the COVID-19 lockdown restrictions are lifted, business recovery will be paramount. • Employers face many decisions around assessing business operations, bringing • employees back to work, and ensuring the workplace is safe. The timelines will vary depending on what industry you are in, but it is a good idea to • begin planning for reopening because this will bring a new set of employment challenges. You may be exposed to legal liability if sufficient precautions are not taken. •
Plan for Business Recovery: Employment Implications The Governments Roadmap Step One - from 13 May 2020 For the foreseeable future, workers should continue to work from home rather than their normal • physical workplace, wherever possible. All workers who cannot work from home should travel to work if their workplace is open. • As soon as practicable, workplaces should follow the new “COVID-19 Secure” guidelines • When travelling everybody (including critical workers) should continue to avoid public transport • wherever possible. Step 2 - no earlier than 1 June 2020 A phased return for early years settings and schools. Schools should prepare to begin to open for • more children from 1 June. Opening non-essential retail when and where it is safe to do so • Step 3 - no earlier than 4 July 2020 Open at least some of the remaining businesses that have been required to close, including • personal care (such as hairdressers and beauty salons), hospitality and leisure facilities (like cinemas).
Plan for Business Recovery: Employment Implications Factors to consider before reopening Employees may be hesitant to return to work if they have concerns that overall • conditions are not sufficiently safe. Your back-to-work plans may depend on your location or sector. • Your workplace may struggle to implement any new social distancing measures that • are put into place. Parents may find it difficult to go back to work if schools or day caring centres remain • shut. It is unlikely all staff will be able to return at once. •
Plan for Business Recovery: Employment Implications Continuing to permit homeworking You should consider which employees may be able to continue to work remotely as • this will allow you to better role out social distancing practices for those who cannot work from home. Employees with at least 26 weeks’ continuous service can make a request for flexible • working, which includes a move to working from home provided they have not made a request under the statutory scheme in the previous 12 months. Remember there is a statutory process for responding to flexible working requests in • this situation.
Plan for Business Recovery: Employment Implications Modifying staff hours Staggering hours will not only assist with social distancing at the entrance of the • workplace but also ease congestion on public transport. Similarly, alternating days of work for different groups or teams of employees may • assist with social distancing requirements. Employment laws require employee agreement when making amendments to • employee terms and conditions, even on a temporary basis. It is advisable to speak to employees first and explain the changes you need to make • and the reasons for the change. You may need to take employees’ individual circumstances into consideration because • a change to working hours may be difficult for some employees who have childcare responsibilities etc.
Plan for Business Recovery: Employment Implications Staff who refuse to return to work You will need to reassure any nervous employees that you aren’t putting them at risk • by asking them to return to work. You can demonstrate your commitment to safety by emphasizing efforts to keep the • workplace safe, as outlined earlier. You should take the specific circumstances of an anxious employee into consideration • because this may be relevant in your decision making. If an employee still does not want to return to work, you may agree to allow a new or • extended period of home working, or arrange for them to take time off as holiday or unpaid leave. If an employee refuses to attend work without a valid reason, you may wish to • consider disciplinary action but proceed carefully!
Plan for Business Recovery: Employment Implications Reorganising the workforce Redeploying staff may be an option for some businesses. If your employees are agreeable • and can be trained to carry out different duties in more viable parts of a business, this should certainly be considered. If you think a lack of work is going to be temporary, lay-off or short time working are • measures that might be appropriate. You could potentially make use of the Job Retention Scheme if eligible. • You may also consider redundancies but you will need to follow usual procedures. •
Plan for Business Recovery: Employment Implications Managing staff with childcare issues Where employees can carry out some (or perhaps all) of their duties from home, they • should be paid accordingly. Where employees are unable to work from home, they should be encouraged to make • alternative childcare arrangements but this will not be possible for all employees. You should consider a temporary flexible working arrangement to adjust or reduce • working hours and change working times to assist employees in managing work and increased childcare responsibilities. Parental leave (unpaid) as well as paid annual leave may be solutions, at least in the • short term.
Plan for Business Recovery: Employment Implications Informing staff they should return to work Even in circumstances where the decision to return to the workplace happens quickly, • you should aim to give employees reasonable notice of the return. Employees may have childcare, or other caring, responsibilities and a return to the • workplace may signify a need for them to make other arrangements. You should also be aware that some employees may not be in a position to return to • the workplace. This could include those who are on sick leave, are self-isolating or are shielding. Be mindful that some staff may also have recently suffered a bereavement. •
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