1 in 5 firms planning more redundancies
A BBC report in August 2021 based on a survey by the British Chamber of Commerce, revealed that 1 in 5 of the 250 organisations they surveyed are planning to make redundancies as the furlough scheme comes to an end.
We’ve previously questioned whether the furlough scheme should have been curtailed earlier to encourage displaced workers to seek out opportunities in sectors desperate for labour. It was predictable that many long term furloughed people were likely to lose their jobs once the furlough life support system was switched off. Those people, some of whom have enjoyed a lucrative second income on top of their furlough pay, will now (presumably) be compelled to seek out alternative employment.
HR Support for redundancy consultations
Employers are reminded that redundancies cannot safely happen unless they are effected under a safe and fair consultation procedure, which includes a period of consultation that cannot be less than 30 days where more than 20 jobs are to go, or 45 days for 100+ reductions in a 90 day period. A failure to consult could bring claims for protective awards of 90 days pay per employee and/or unfair dismissal claims. Some commentators report that the majority of the long term furloughed are older workers, adding the prospect of age discrimination claims if employees can show that their employers unjustifiably selected older people for redundancy – which should be a relatively straight forward claim to establish.
myHRdept will provide pragmatic HR support services for redundancies, collective or otherwise, and will help clients plan for and carry out a fair process. If you need HR support for one or more redundancies, please contact us. For existing clients we can normally accommodate redundancy HR support requests within existing support hours, for non-clients we will provide a one-off service quote covering the project.