What happens to my job when Furlough ends?

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Author:
Damian Kelly
Head of Employment
Date:
29/07/2021

The furlough scheme, also known as the Job Retention Scheme, is set to end on 30th September 2021. But employers will now need to start contributing to furlough staff’s wages.

If you’re still on furlough, you understandably might have some concerns about what’s going to happen to your job once the scheme ends. Your employer will need to decide whether to give furloughed staff their jobs back or make them redundant if they can’t afford to keep them on.

If you’ve been made redundant by your employer and think you’ve been unfairly dismissed, get in touch with our Employment Solicitors for a free case assessment. We can take a look at your situation and tell you if we think you’ve got grounds for a claim.

Call us on 08002605010 or request a callback and we will help you.

What are the Furlough Changes?

Furloughed employees will continue to get 80% of their wages for the hours they’re not working, up to a maximum of £2,500 a month, until the scheme officially ends on 30th September.

But as of 1st July, employers must now pay 10% of their furloughed employees’ wages, while the Government will pay the remaining 70%. In August and September, the government contribution will reduce to 60%, leaving employers paying the extra 20%.

Despite furlough being extended four times since the scheme began, it’s looking unlikely that it’ll be extended past the September end date

Redundancy after Furlough

Currently, 1 in 20 employees are still on full or partial furlough.

While furlough has helped millions of people keep their jobs during Covid-19, many companies are still recovering from what’s been a tough year. Sadly, this could mean that some employers may struggle to afford to keep some employees on after furlough ends.

Redundancy is one option, but employers should also consider more temporary measures such as part-time working, a recruitment freeze or reduced hours, to help keep employees on until the company is more stabilised.

If redundancies need to be made, your employer must follow the correct procedures, which includes giving you:

      • A notice period
      • A full consultation
      • Redundancy pay
      • Time off to find a new job

Last year, the Government introduced new legislation to protect furloughed employees by making it compulsory that they receive statutory redundancy pay based on their normal wages, rather than their reduced furlough pay.

If your employer is planning on making you redundant when furlough ends, they should give you notice as early as possible and encourage you to raise any concerns you have straight away.

Can I Claim Unfair Dismissal?

Even though your employer has the right to make a furloughed employee redundant, they still need to give a genuine reason and show that your role is no longer required. They need to demonstrate that they’ve considered all other options before redundancy and give you a proper consultation.

After your consultation, you’ll have the right to appeal the decision if you think it’s unfair. If it’s found that your employer didn’t comply with the ACAS Code of Practice Disciplinary & Grievance Procedure, they could be at risk of unfair dismissal.

A case can only be considered for unfair dismissal if:

        • You were employed by your employer for more than 2 years
        • Your employer didn’t consult you properly about your redundancy
        • Your employer didn’t look into alternative options

If you think you might have been unfairly dismissed, get in touch with our Employment Solicitors for a free assessment of your case. We have years of experience in unfair dismissal cases and really know the ins and outs of an Employment Tribunal Claim.

We’ll tell you if we think you’ve suffered unfair dismissal and advise you on your next steps.

If you’re currently furloughed and worried about what’s going to happen to your job, you should raise any concerns you have with your employer.

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