In less than two months the furlough scheme will come to an end. With changes to the scheme already implemented in August, this is the second month that employers will feel the financial burden of paying employers national insurance and pension contributions as well as 10% of salary (the government will pay 70%) for staff that are not actively working for their business.  

From the beginning of October this contribution will change again. In the last month of the scheme employers will need to contribute 20% of salary, plus NI and Pension contributions, whilst the Government will make up the remaining 60%.  Unsurprisingly, business owners are looking very carefully and critically at staffing costs and sales forecasts and making personally difficult decisions. 

For some, there is a feeling that restructuring and making employees redundant is some sort of personal failure or creates a feeling of giving in. But the reality is that Covid19 really has created unprecedented trading conditions for many, and ensuring staffing levels are at a sustainable level is essential for the survival of many businesses. 

Some businesses have already taken actions and we have seen a wave of announcements from some large brand names including  Royal Mail, Centrica and The Restaurant Group.  

When looking at restructuring it is important to remain impartial, consider what the business needs and the roles that need to be filled.  It is also important to consider the timeframes involved in the redundancy process.  The Covid-19 pandemic has not altered the legalities surrounding redundancy, employees still have all the rights they previously had and these need to be respected.  Considering some of the complexities surrounding fair and genuine redundancy processes it in not uncommon for businesses to engage experienced HR professionals to steer them through the many pitfalls and avoid claims for unfair dismissals or discrimination.   

But if you can ride the storm without restructuring, (there are many alternatives that employers can consider before letting go talented and experienced staff) don’t forget there is a job retention bonus of £1,000 for every worker brought back from furlough and kept in employment past 31st January 2021. Of course, there are conditions and criteria associated with this government scheme which can be found here.  

If you are not sure what your next step should be, want some help to consider all your options, or need help with your restructuring exercise, our experienced HR team can help you to plan and implement the changes ensuring your business is protected and employees are treated with dignity and respect. Give us a call today for a free initial consultation.