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Furlough & Redundancies: What employers need to know

Redundancies were predicted as the Coronavirus Job Retention Scheme comes to an end on the 30th September. However, this surge doesn’t appear to be forthcoming.

Despite 1.9 million workers still being on furlough at the end of June, recent data from the Insolvency Service (the body employers must notify when they are making 20 or more staff redundant) shows that the proposed job cut figures in August were the lowest they have been for 7 years. The exact number of proposed job cuts stood at 12,687 in August. At the height of the pandemic, this figure stood at 150,000 job cuts per month.

During the month of September, employers are able to recoup 60% of a worker’s wages, up to a cap of £1,875 using the Government’s Coronavirus Job Retention Scheme. The deadline for August claims is the 14 September 2021 and the deadline for September claims is the 14 October 2021. Past September, employers with staff currently on furlough will need to assess whether they can afford to pay 100% of staff members’ wages going forward, or whether they will need to look at making redundancies.

Employment Solicitor Amanda Glover explains in this podcast about the furlough wind down, redundancy forecasts and what you need to do as an employer by law if you are considering redundancies this autumn.

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