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The Furlough Scheme ( or , to give its full title the Coronavirus Job Retention Scheme ) will end on 30th April 2021 ( at the time of going to press ).
It has been extended several times , but this may truly be the end . This leaves us with a firm date to check how successfully we have managed our businesses , adapted or pivoted during the pandemic , and , most particularly , do some hard analysis of what our business is going to look like going forward .
We will all have experienced change in working practices and some of us will have pivoted our business immeasurably . Some will have effectively moved to a future way of working and some moved into new markets .
However , what are the implications for our staff and our staffing needs ? We will have found out which of our staff are resilient , which are adaptable , which can acquire new skills and have a positive attitude . We ’ ll have found out some are dispensable . We ’ ll probably need to make some hard decisions on re-organisation ,
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restructuring and redundancy but also recruitment .
Many businesses find three of these four “ Rs ”, redundancy , reorganisation and restructuring , psychologically challenging . We don ’ t relish the perceived conflict or confrontation or the uncertainty of the end game .
However , the current economic and business instability may prove a positive watershed for any business that perhaps , previously may have prevaricated on these issues to take the initiative and take advantage of the ‘ coronavirus catalyst ’. Fortune favours the brave .
In some ways the pandemic has acted as a filter to work out who we value , who we don ’ t value , who is the future and who can help us as we move into the post Covid business world .
Unfortunately , the Furlough Scheme is now no longer available for redundancy notice periods ( that stopped at the end of 2020 ) and so if you are considering redundancies then you will need to take the full hit in relation to notice ( either worked or
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paid in lieu ) and any redundancy payment .
However , if you have not acted already now is the time to do it . Brexit , ( with gremlins ), is over , infection numbers are coming down and vaccinations are going up . Unless the Government and SAGE are fundamentally wrong in their assessment that vaccination is the way out of the current pandemic , then this is our time as employers when we should start preparing for what hopefully should be an upturn in our markets .
Many of us will be familiar with redundancies . They are relatively straightforward . Identify those at risk , consult properly , and terminate with the appropriate notice and package .
But what about restructuring and reorganisation ? What if you have people you value and you want them to perform other roles or work in different ways or in different departments ? The employment legislation provides for this as long as you consult well against a clear and understandable business case . If
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you make appropriate offers in alternative roles and those roles are not accepted , then you can lawfully terminate employment . Strictly speaking as this type of dismissal is for ‘ some other substantial reason ’ ( as it is known in the legislation ), you do not even have to pay a redundancy payment . Most companies do because it makes them feel comfortable , especially if you are terminating the employment of someone you value .
What next ? The key to all this ( including redundancy ) is a clear business case and good , genuine and documented consultation . If you have a clear vision of what your business looks like and how you need to resource it going forward , now is the time to act , get your ducks lined up and start moving .
For further advice for you and your individual circumstances , please don ’ t hesitate to get in touch . Email : kevinbasnett @ goughs . co . uk or call : 01249 812086
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