T ricky Furlough Operating Issues and What Next Rustom T ata, Abigail Maino and Rebecca Thornley-Gibson WWW.DMHSTALLARD.COM
Basics and health warnings Coronavirus Job Retention Scheme announced 20 March 2020 : AKA Furlough Initial Guidance published 26 March and further updates and Direction since: more expected? Discrepancies between guidance and Direction therefore significant scope for uncertainty WWW.DMHSTALLARD.COM
Overarching spirit of the scheme “ Designed to help employers whose operations have been severely impacted by coronavirus to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus” 9 April 2020 WWW.DMHSTALLARD.COM
Use of the CJRS • What % of your staff have you furloughed within your organisation? Poll WWW.DMHSTALLARD.COM
Right to be furloughed? Employees cannot demand to be furloughed: it is for the employer to decide whether to use the CJRS to claim wage costs So how do you deal with employees who request to be furloughed? WWW.DMHSTALLARD.COM
Furlough and 2 nd employment Should you allow this? What considerations will you take into account? Same rules for all? WWW.DMHSTALLARD.COM
Is your initial Furlough Agreement still fit for purpose? • Do you now need to consider changes in light of updated guidance and changing business needs? • What are your options on seeking changes? • What if employees don’t sign a new agreement? WWW.DMHSTALLARD.COM
Possible changes in the Furlough Agreement Ability to furlough on/off T aking annual T op ups (minimum three leave weeks) Benefits Pension Secondary reduction contributions employment T raining WWW.DMHSTALLARD.COM
Furlough agreements • Are you considering changes to your furlough agreements prior to 30 June? Poll WWW.DMHSTALLARD.COM
Is that Time off from furlough possible? • Long running uncertainty around accrual, exercise and pay rates • Amending Regulations to WTR allowing for carry over of up to four weeks leave to be taken over next two years • Revised Guidance to employees finally provided some clarification, but some uncertainty remains WWW.DMHSTALLARD.COM
Managing contact during furlough? • The employment contract continues so: • communications in respect of key business; • involve furloughed employees in regular team meetings; • ensure that development opportunities are highlighted. • How are you managing personal development and training? • What about volunteering opportunities? • Postpone or continue grievance and disciplinary processes? WWW.DMHSTALLARD.COM
Poll WWW.DMHSTALLARD.COM
Can we consider redundancies during furlough? • Y es - probably? But • Practical logistics of implementing collective redundancy processes • When do you trigger collective consultation requirements? • How will you carry out elections for employee reps? • Is acting as an employee rep carrying out ‘work’? • What will a fair selection process look like? And then... (drum roll image) – new slide • Can notice be served during furlough? • Can notice and/or SRP wage costs be claimed under CJRS? WWW.DMHSTALLARD.COM
Poll WWW.DMHSTALLARD.COM
Planning for post furlough : Remuneration Can we impose What about pay reductions? deferring pay reviews? Can we stop Should we review bonus payments? our benefits? WWW.DMHSTALLARD.COM
Planning for post furlough: hours and location • How should we view flexible working now? • Do changes have to be permanent? WWW.DMHSTALLARD.COM
Planning for post furlough: job changes We have one department that is busy and another that is likely to be quiet for the foreseeable future – what should we do? WWW.DMHSTALLARD.COM
Planning for post furlough : L&D and recruitment Are there any legal issues to consider with a recruitment freeze? How can we make the most of our training budget? WWW.DMHSTALLARD.COM
Good practice recommendations Be ready with Review furlough answers on 2 nd Determine annual arrangements and employment leave approach the agreement requests Maintain Plan now for post communications furlough period with all employees beyond 31 May on future plans 2020 WWW.DMHSTALLARD.COM
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