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Redundancies expected to surge as furlough scheme winds down

The president of the employment tribunals has said he’s anticipating an notable increase in redundancy-related dismissals as the UK’s furlough scheme winds down in the coming months.

The Coronavirus Job Retention Scheme was introduced to help support businesses and employees through the coronavirus pandemic, allowing employers to place employees on ‘furlough leave’. During this period an employer could claim back 80% (capped at £2,500 a month) of a furloughed employee’s wage, while the employee remains employed but does not complete any work.

However, from August 2020 employers will need to contribute to the scheme by paying employer national insurance and pension contributions for furloughed staff and will need to contribute 20% of an employee’s wage by October. This is unfortunately expected to lead to employer’s making difficult decisions regarding redundancies in organisations where the pandemic has been detrimental to business.

Even in times such as these, it is essential that the correct processes are followed. The employment team at Linder Myers Solicitors has decades of experience in redundancy-related matters, representing both employees and employers. If you have any questions about redundancy, furlough or any other employment matter, get in touch today: enquiries@lindermyers.co.uk.

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