CORONAVIRUS Plan for Business Recovery: Employment Implications - - PowerPoint PPT Presentation

CORONAVIRUS Plan for Business Recovery: Employment Implications

24/7 professional support for business, across employment law, HR, health and safety Amanda Chadwick Date: 18/05/ 05/2020 2020 Run time: Approx 45 mins

The detail il contain ined w wit ithin in t this is w webin inar is is based o

• n GB and N

Northern Irela land emplo loyment le legis isla latio ion. Members in the jurisdictions of Republic of Ireland, Jersey, Guernsey and Isle of Man are asked to please contact the Advice Service to

• btain the information relevant to your jurisdiction.

Today We Will Cover…

Plan for Business Recovery: Employment Implications

1) Change to terms and conditions 2) Lay off and shortage of work 3) Redundancy

What are your options after shutdown?

• Despite the furlough scheme that is aimed at helping employers retain their workforce

during the challenges caused by coronavirus, it may not be enough for some employers who are looking ahead to the future.

• A recent poll showed that almost a quarter of employers are faced with the prospect of

making redundancies as they assess the steps they need to take for their business to survive in the longer run.

• Government guidance on furlough makes clear that employees still have full

employment rights and employers are not released from their legal obligations during this time.

• Our ability to help a business rebuild comes in many forms and one of these is to guide

them through the redundancy process to ensure they make fair dismissals. Redundancy is a dismissal so is still sensitive to ‘fairness’. Red tape a-plenty.

Plan for Business Recovery: Employment Implications

What are your options after shutdown?

• The Job Retention Scheme, built around furlough, is a scheme the Government have

introduced to all companies to not require people to work but still be paid 80% of their wage/salary (as long as they meet the criteria). This currently is available until the end of June.

• However, this may not be suitable for all businesses during this time. Businesses may need

to look at options now.

• Some are still fully operational and need their employees working but may not be able to

fulfil the contract at this time.

• The situation at the moment may not be temporary and so more permanent solutions need

to be considered.

• Consideration of business needs after Furlough may be needed.

Plan for Business Recovery: Employment Implications

Plan for Business Recovery: Employment Implications

Flexible Furloughing

• “Flexible furloughing”, a phrase used by the Chancellor, will be in place from the start
• f August.
• It will support employers to bring employees back off furlough on a part time basis

and still claim a portion of wages from the Scheme so that that the employee still gets 80% pay.

• Until the end of July, the Scheme will continue unchanged.
• Lot of questions on “flexible furloughing” that need answering but we’re told more

info will be out by the end of May.

• Quote “Further detail will follow by the end of May but I want to assure people one thing

won’t change: Workers will, through the combined efforts of government and employers, continue to receive the same level of support as they do now, at 80% of their salary, up to £2,500”.

Plan for Business Recovery: Employment Implications

Lifting of lockdown restrictions

• As the COVID-19 lockdown restrictions are lifted, business recovery will be paramount.
• Employers face many decisions around assessing business operations, bringing

employees back to work, and ensuring the workplace is safe.

• The timelines will vary depending on what industry you are in, but it is a good idea to

begin planning for reopening because this will bring a new set of employment challenges.

• You may be exposed to legal liability if sufficient precautions are not taken.

Plan for Business Recovery: Employment Implications

The Governments Roadmap

Step One - from 13 May 2020

• For the foreseeable future, workers should continue to work from home rather than their normal

physical workplace, wherever possible.

• All workers who cannot work from home should travel to work if their workplace is open.
• As soon as practicable, workplaces should follow the new “COVID-19 Secure” guidelines
• When travelling everybody (including critical workers) should continue to avoid public transport

wherever possible. Step 2 - no earlier than 1 June 2020

• A phased return for early years settings and schools. Schools should prepare to begin to open for

more children from 1 June.

• Opening non-essential retail when and where it is safe to do so

Step 3 - no earlier than 4 July 2020

• Open at least some of the remaining businesses that have been required to close, including

personal care (such as hairdressers and beauty salons), hospitality and leisure facilities (like cinemas).

Plan for Business Recovery: Employment Implications

Factors to consider before reopening

• Employees may be hesitant to return to work if they have concerns that overall

conditions are not sufficiently safe.

• Your back-to-work plans may depend on your location or sector.
• Your workplace may struggle to implement any new social distancing measures that

are put into place.

• Parents may find it difficult to go back to work if schools or day caring centres remain

shut.

• It is unlikely all staff will be able to return at once.

Plan for Business Recovery: Employment Implications

Continuing to permit homeworking

• You should consider which employees may be able to continue to work remotely as

this will allow you to better role out social distancing practices for those who cannot work from home.

• Employees with at least 26 weeks’ continuous service can make a request for flexible

working, which includes a move to working from home provided they have not made a request under the statutory scheme in the previous 12 months.

• Remember there is a statutory process for responding to flexible working requests in

this situation.

Plan for Business Recovery: Employment Implications

Modifying staff hours

• Staggering hours will not only assist with social distancing at the entrance of the

workplace but also ease congestion on public transport.

• Similarly, alternating days of work for different groups or teams of employees may

assist with social distancing requirements.

• Employment laws require employee agreement when making amendments to

employee terms and conditions, even on a temporary basis.

• It is advisable to speak to employees first and explain the changes you need to make

and the reasons for the change.

• You may need to take employees’ individual circumstances into consideration because

a change to working hours may be difficult for some employees who have childcare responsibilities etc.

Plan for Business Recovery: Employment Implications

Staff who refuse to return to work

• You will need to reassure any nervous employees that you aren’t putting them at risk

by asking them to return to work.

• You can demonstrate your commitment to safety by emphasizing efforts to keep the

workplace safe, as outlined earlier.

• You should take the specific circumstances of an anxious employee into consideration

because this may be relevant in your decision making.

• If an employee still does not want to return to work, you may agree to allow a new or

extended period of home working, or arrange for them to take time off as holiday or unpaid leave.

• If an employee refuses to attend work without a valid reason, you may wish to

consider disciplinary action but proceed carefully!

Plan for Business Recovery: Employment Implications

Reorganising the workforce

• Redeploying staff may be an option for some businesses. If your employees are agreeable

and can be trained to carry out different duties in more viable parts of a business, this should certainly be considered.

• If you think a lack of work is going to be temporary, lay-off or short time working are

measures that might be appropriate.

• You could potentially make use of the Job Retention Scheme if eligible.
• You may also consider redundancies but you will need to follow usual procedures.

Plan for Business Recovery: Employment Implications

Managing staff with childcare issues

• Where employees can carry out some (or perhaps all) of their duties from home, they

should be paid accordingly.

• Where employees are unable to work from home, they should be encouraged to make

alternative childcare arrangements but this will not be possible for all employees.

• You should consider a temporary flexible working arrangement to adjust or reduce

working hours and change working times to assist employees in managing work and increased childcare responsibilities.

• Parental leave (unpaid) as well as paid annual leave may be solutions, at least in the

short term.

Plan for Business Recovery: Employment Implications

Informing staff they should return to work

• Even in circumstances where the decision to return to the workplace happens quickly,

you should aim to give employees reasonable notice of the return.

• Employees may have childcare, or other caring, responsibilities and a return to the

workplace may signify a need for them to make other arrangements.

• You should also be aware that some employees may not be in a position to return to

the workplace. This could include those who are on sick leave, are self-isolating or are shielding.

• Be mindful that some staff may also have recently suffered a bereavement.

Plan for Business Recovery: Employment Implications

Informing staff they should return to work

• Have a pre-return to work conversation with them to discuss the return
• Identify whether there will be any concerns over the return e.g. childcare that needs

arranging

• Ascertain how they will be travelling to work
• Identify any adjustments or support they may need on their return

Plan for Business Recovery: Employment Implications

Managing the first day back

• A ‘re-boarding’ process may be appropriate, especially where employees have been out
• f the workplace for a long time.
• Managers should hold one to one meetings with employees with a focus on their health

and wellbeing.

• The discussion should be used to confirm any adjustments or support needed to

enable the employee to carry out their role.

• If your employees have access to an Employee Assistance Programme, remind the

employee that they have the opportunity to speak to a trained counsellor about any concerns they have.

Plan for Business Recovery: Employment Implications

Managing staff annual leave

• Your approach to annual leave will depend on your specific circumstances and

whether your employees have taken annual leave in recent weeks.

• The Working Time Regulations 1998 were recently amended to allow carry over of the

four weeks of annual leave that were previously exclusive to the year in which they were accrued.

• This means that, where it was not reasonably practicable for annual leave to be taken

in this leave year because of COVID-19, it can be carried over into the next two leave years.

Plan for Business Recovery: Employment Implications

Ongoing change to workplace policies

A thorough analysis of existing policies should be undertaken to include adjustments made for recent legislation. Some of the policies may include:

• Attendance.
• Holidays/Paid Time Off.
• Remote work.
• Work hours, including start/stop time,

breaks, lunch times, flexible hours, and staggered work hours.

• Timekeeping including clock in/out

procedures.

• Leave policies including sick leave.
• Travel policies including business and

personal travel, and

• Information technology and usage.

Changes to Terms and Conditions

• This can be in regards express terms laid out in a statement of main terms of

employment, handbook, workforce agreements, collective agreements, policies, protocol booklets etc.

• You can also consider implied terms – those terms too obvious to be written

down but have become custom and practice.

• Express and implied terms are contractually binding and legally enforceable

and cannot be changed without agreement from both parties.

Plan for Business Recovery: Employment Implications

• In the current climate, the terms within a contract that may need to be changed

include hours of work, times of work and the place of work. This may be a temporary or permanent change. Both would need agreement.

• In order to change terms and conditions you need to follow a procedure of

communication, consultation and confirmation.

Changes to Terms and Conditions

Plan for Business Recovery: Employment Implications

• Talk to the affected employees informally

about making changes to their contract with the aim of getting their agreement.

• If agreement is obtained, inform them of

the start date of the new terms

• If the informal approach does not

result in agreement, start formal consultation

Communication

Plan for Business Recovery: Employment Implications

1

• Arrange formal meetings with employees;
• Explain the extent of the changes you want to make;
• Explain why you want to make them;
• Explain what will happen if you do not make the

changes;

• Allow them to ask questions about the change;
• Respond to those questions;
• A series of meetings may be required;
• Consider offering an incentive to encourage

agreement.

Consultation

Plan for Business Recovery: Employment Implications

2

• Get written agreement to the changes

from all affected employees;

• Confirm in writing the date the changes

will take place;

• Place a copy of the written agreement on

the employee’s personnel file;

• Consider any consequential changes – a

change to working hours or days may mean a change to annual leave entitlement etc

Confirmation

Plan for Business Recovery: Employment Implications

3

If no agreement is reached

• Serve contractual notice to the employees to terminate the original contract;
• Offer immediate re-engagement on a new contract containing the changed

terms (the employee would retain their length of service).

Plan for Business Recovery: Employment Implications

Where your efforts to obtain agreement have not worked, there is another

• ption:

DISMISSAL + RE-ENGAGEMENT

Lay off/Shortage of Work

• The Job Retention Scheme is there to avoid lay off where possible as this

allows employers to not have employees working but continue to pay 80% of employees’ wages which they can claim a grant to cover.

• However, not all businesses are able to utilise the Job Retention Scheme for

various reasons. If work is ceasing or diminishing as a result of the coronavirus you may be able to consider laying off employees or placing them on short time working as an alternative to redundancy.

• Relevant clause in the employee handbook or employee contract is required.
• If there isn’t one, we can advise on consultation to aim for agreement from

staff to implement a temporary clause.

• Lay off and short time working has no minimum or maximum length of time,

but timeframe may impact on employee entitlements.

Plan for Business Recovery: Employment Implications

• Where employees are not provided work and the situation is expected to be

temporary such as no work available due to the current coronavirus pandemic.

• Only applies where the employer does not provide work but the employee’s

pay is dependent on them being provided work.

• The employee must also remain available for work.

Definition of ‘lay-off’

Plan for Business Recovery: Employment Implications

Definition of ‘short-time working’

Plan for Business Recovery: Employment Implications

• Where the employer requires employees to work fewer hours than their normal contracted

hours such as a reduction in work e.g. supplier has reduced supply because of fewer staff due to the virus

• Anything less than normal hours will be short time working
• If the employee is to qualify to claim redundancy pay (more on that later), the amount of

work done needs to be less than half normal hours

• Note the normal statutory definition of a “week” is the seven days ending on the day pay is

normally calculated, for a weekly –paid employee or seven days ending on a Saturday, for all

• ther employees.
• In certain cases, an employer's contract may provide employees with pay that is greater

than half their weeks pay during periods of reduced working. In these circumstances, the employee would not meet the statutory definition of “short-time working”

Statutory Guarantee Pay (SGP)

• Employees with at least one month’s service are entitled to be paid Statutory

Guarantee Pay if there is a reduction of work or something that affects the normal working of a business.

• Payments depend on several factors, including complete 24 hour working

days being lost, the employee being available for work and not unreasonably refusing an offer of alternative work.

• Paid for a maximum of 5 workless days in any period of three months.
• Rates of SGP – £30 per day (increased on 6th April 2020).

Plan for Business Recovery: Employment Implications

• Employees can become entitled to a statutory redundancy payment if they

have been placed on LOST, subject to certain conditions.

• They need to have:

 Two years’ minimum service  Follow the required statutory procedure  Resign with appropriate notice (statutory minimum one week or contractual notice, whichever is greater)  Been on LOST for either four or more consecutive weeks or six or more weeks within a period of 13 weeks where no more than three weeks are consecutive.

LOST - Entitlement to redundancy payment

Plan for Business Recovery: Employment Implications

A genuine redundancy situation is where there is, either: A closure of the business in which the employee was employed A closure of the place of business where the employee was employed A reduced requirement for employees to carry out work of a particular kind

Redundancy

1 2 3

Plan for Business Recovery: Employment Implications

Employers are encouraged to establish a written business case for the redundancy. This is a key document in the redundancy process. It sets out your thought process behind the redundancy including why it is needed. It can help to evidence that a redundancy was not used as a way to cover up other employee issues. What has lead to the need to consider redundancies? Falling profits? Loss of key clients/contracts/funding? Be specific: include actual financial figures and projected figures Set out information in tables. How much will the redundancy process cost, how will the proposal meet the objective, how much will you save.

Preparing a business case

Plan for Business Recovery: Employment Implications

What have you done to avoid redundancies? Recruitment freeze? Lay-off/short time? Reduced prices? Cut overtime? Include the result of your efforts. What difference have they made? Set out the number of employees who will be at risk of redundancy and the job titles Note down who else will be affected (but not at risk) and how Don’t use employee names

Business case: what to consider

Plan for Business Recovery: Employment Implications

Redundancy process

Plan for Business Recovery: Employment Implications

Identify the pool of employees who are at risk and your selection criteria. Hold an at risk meeting with affected employees. Consultation process (the process is determined by how many redundancies are proposed at one establishment) Individual consultation – less than 20 proposed redundancies – within 90 day period Collective consultation – 20 or more within a 90 day period- trade union rep to be involved if recognised. If no trade union rep then employee representative or if their isn’t

• ne opportunity to elect rep

100 or more redundancies proposed the minimum collective consultation is 45 days

Redundancy process

Plan for Business Recovery: Employment Implications

After the consultation meeting, employees in a pool will need to be scored. Can be held with each employee, or scoring can be done by managers Apply the selection criteria to each employee and score on this basis. Have more than one manager carry out scoring to ensure fairness and reduce the risk of discrimination. Use a scoring matrix to identify which employees have the lowest scores

Redundancy process

Plan for Business Recovery: Employment Implications

Once the consultation process has ended, provide redundant employees with notice of termination. If notice is given in a meeting, the employee has a statutory right to be accompanied at this meeting. Employees who work their notice period have a right to reasonable paid time off (what do you consider reasonable) work to search for new work, or to carry out training. The maximum they can be paid for is two fifths of one weeks actual pay. Ensure the employee is aware of their right to appeal the redundancy dismissal.

Redundancy process

Plan for Business Recovery: Employment Implications

Where suitable alternative employment is available, offer this to the employee. Suitability first looks at the job objectively, but then requires the individual employee to find it suitable based on their own circumstances. Employees have a right to a four week trial period in their new job. Things to remember – duty to consider what alternative employment is available continues throughout the redundancy exercise, including any period when someone is working out their notice. Those on maternity, paternity and adoption leave have special rights – suitable vacancy the employee is entitled to be offered that role.

Redundancy process

Plan for Business Recovery: Employment Implications

Employees with two years’ continuous service are entitled to a statutory redundancy payment. The amount of this pay depends on the employee’s age, length of service and weekly pay. The maximum pay is currently capped at £16,140. Employers may also operate enhanced redundancy pay schemes. In addition to notice they are entitled to any accrued holiday pay.

Thinking about risk Who should go to work Equality in the workplace Social distancing Managing contacts Re-opening the workplace after lockdown

Cleaning the workplace Personal Protective Equipment (PPE) Workforce management Inbound and outbound goods Re-opening the workplace after lockdown

• Reduced hot-desking
• minimizing numbers using equipment including a ban on sharing pens
• staggering shift times
• Using one ways
• Using separate entrances
• Wearing of masks
• consideration of physical screens and the use of protective equipment where keeping workers 2m apart is impossible
• closing canteens and keeping employees apart during break times by marking appropriate distance with floor tape
• no face to face meetings
• keeping lifts half empty
• laying on more car parking spaces to avoid colleagues giving lifts to each other
• continued homeworking for months to prevent the public transport system being overwhelmed
• monitoring of their “mental and physical health” by employers
• companies will have to draw up a Covid-19 “risk assessment” before allowing staff to return to work
• high levels of deep cleaning

Getting Back To Work – Health & Safety

• Be aware of all your options
• Decide the best option to suit the needs of the business
• Follow the correct procedure at all times

In Summary

bit.ly/hri-backtowork

We can help.

THANK YOU

HR-inform.co.uk 0333 207 5658

Follow us Any question?