T ricky Furlough Operating Issues and What Next Rustom T ata, - - PowerPoint PPT Presentation

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T ricky Furlough Operating Issues and What Next

Rustom T ata, Abigail Maino and Rebecca Thornley-Gibson

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Basics and health warnings

Coronavirus Job Retention Scheme announced 20 March 2020 : AKA Furlough Initial Guidance published 26 March and further updates and Direction since: more expected? Discrepancies between guidance and Direction therefore significant scope for uncertainty

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Overarching spirit of the scheme

“Designed to help employers whose operations have been severely impacted by coronavirus to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus” 9 April 2020

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Use of the CJRS

• What % of your staff have you furloughed within your
• rganisation?

Poll

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Right to be furloughed? Employees cannot demand to be furloughed: it is for the employer to decide whether to use the CJRS to claim wage costs So how do you deal with employees who request to be furloughed?

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Furlough and 2nd employment

Should you allow this? What considerations will you take into account? Same rules for all?

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Is your initial Furlough Agreement still fit for purpose?

• Do you now need to consider changes in light
• f updated guidance and changing business

needs?

• What are your options on seeking changes?
• What if employees don’t sign a new

agreement?

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Possible changes in the Furlough Agreement

T

• p ups

Ability to furlough on/off (minimum three weeks) T aking annual leave Benefits reduction Pension contributions Secondary employment T raining

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Furlough agreements

• Are you considering changes to your furlough agreements

prior to 30 June? Poll

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Time off from furlough Is that possible?

• Long running uncertainty around accrual, exercise and

pay rates

• Amending Regulations to WTR allowing for carry over
• f up to four weeks leave to be taken over next two

years

• Revised Guidance to employees finally provided some

clarification, but some uncertainty remains

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Managing contact during furlough?

• The employment contract continues so:
• communications in respect of key business;
• involve furloughed employees in regular team meetings;
• ensure that development opportunities are highlighted.
• How are you managing personal development and training?
• What about volunteering opportunities?
• Postpone or continue grievance and disciplinary processes?

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Poll

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Can we consider redundancies during furlough?

• Y

es - probably? But

• Practical logistics of implementing collective redundancy

processes

• When do you trigger collective consultation requirements?
• How will you carry out elections for employee reps?
• Is acting as an employee rep carrying out ‘work’?
• What will a fair selection process look like?

And then... (drum roll image) – new slide

• Can notice be served during furlough?
• Can notice and/or SRP wage costs be claimed under CJRS?

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Poll

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Planning for post furlough : Remuneration

Can we impose pay reductions?

What about deferring pay reviews? Can we stop bonus payments? Should we review

• ur benefits?

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Planning for post furlough: hours and location

• How should we view flexible working

now?

• Do changes have to be permanent?

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Planning for post furlough: job changes

We have one department that is busy and another that is likely to be quiet for the foreseeable future – what should we do?

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Planning for post furlough : L&D and recruitment

Are there any legal issues to consider with a recruitment freeze? How can we make the most of

• ur training budget?

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Good practice recommendations

Review furlough arrangements and the agreement Be ready with answers on 2nd employment requests Determine annual leave approach Maintain communications with all employees

• n future plans

Plan now for post furlough period beyond 31 May 2020