How The End Of The Furlough Scheme Will Affect Employees

As you will likely know if you have been placed on furlough at all throughout the COVID-19 pandemic, the Coronavirus Job Retention Scheme has now been extended until 30th September 2021. This is very welcome news to lots of employers and it provides them with some more time to rebuild their business before they have to start paying 100% of their employees’ wages again. 

However, from the 1st July 2021, there will be changes to the level of the grant given to businesses. Employers will have to start contributing towards furloughed employees’ wages and in the months between July and September, the amount needing to be contributed will continue to rise. This is cause for concern for lots of businesses and it is thought that the scheme coming to an end will cause a number of financial problems. 

If you are currently on furlough or flexible-furlough and you are wondering how the end of the Coronavirus Job Retention Scheme is likely to affect you, below we have looked into what experts are predicting will happen in the upcoming months.

What the furlough scheme ending will mean for employees

Without financial support from the Government, it is predicted that lots of businesses will have to downsize, restructure or even shut down and unfortunately, this will mean that they have to make some or all of their employees redundant. As many businesses still will not be making enough profit to stay afloat, they will have no choice but to make cuts. 

There is a chance that some businesses will be able to benefit from other financial support measures put in place by the Government as the furlough scheme comes to an end, but not everyone will be able to get more financial help. This is worrying for both employers and employees alike, but there is hope that as the roadmap out of lockdown remains to be on-track, the economy will soon bounce back and be on its way to a full recovery. 

What employees should know about redundancy 

When finding themselves in a situation where they are being made redundant, all employees should be aware of what their employment rights are in this regard. Just because they are being made redundant and not being dismissed for any other reason does not mean that employers do not have certain processes they have to follow. 

Many employees do not realise that if an employer does not handle your redundancy correctly then it could fall under the category of ‘unfair dismissal’ and you may be able to make a claim to the Employment Tribunal. There are certain things that an employer has to do to ensure that a redundancy is fair, including; 

  • Consult with employees about redundancy
  • Look at other alternatives to redundancy 
  • Carry out a fair selection for redundancy
  • Give required notice of redundancy
  • Offer an appeals process
  • Provide redundancy payment (when applicable)

Should any of these things be overlooked during the redundancy process or if you ever think that you have been selected unfairly for redundancy then it is beneficial to speak with an employment law specialist about your redundancy situation in more detail. 

Whether your employer is only planning on making you redundant or they are having to carry out a collective redundancy, it is beneficial to do some research and look into what you can expect to happen and what your statutory entitlements are. If the business you work for has a redundancy policy that sets out their redundancy procedure, then it is also beneficial to read through this as well.

Getting some tailored advice about unfair dismissal and redundancy

Unfortunately, it is likely that the end of the furlough scheme will affect lots of businesses and, in turn, their employees. It is predicted that there will be an increase in redundancies for the next few months as businesses try to rebuild after a year of Coronavirus restrictions. If there have been talks of redundancies in your workplace and you are looking to get some advice about unfair dismissal and redundancy, please do not hesitate to contact Damian McCarthy. 

As an employment law specialist with over twenty years of experience handling complex employment law cases, you can trust that Damian has the capabilities to assist you further. He will gladly provide you with a free, confidential and no-obligation discussion in relation to your redundancy situation, and he will be able to answer any questions that you may have in this regard. If you are made redundant and it appears to have been an unfair dismissal, then Damian will also be able to assist you in making a claim to the Employment Tribunal if you wish to do so.