The current unprecedented restrictions put in place across the UK, in response to the COVID-19 pandemic are having an enormous impact on thousands of businesses. In recognition of that, the UK government announced various schemes to try to help support business through this uncertain period. One of those options is placing employees on temporary “furlough” leave, as an alternative to many otherwise inevitable redundancy and job losses.
If you are considering placing staff on furlough, here are our top tips when talking to staff:
1. Give context of the situation
Companies are having to review their own position on a continual basis to fundamentally ensure the survival and longevity of the business and, as a result, many are having to make decisions that have a major impact both on businesses and on individuals and teams.
2. Explain why they are affected (example below)
“Over the past few weeks, we have undertaken a review of roles and have come to the decision that, due to the temporary reduction in the need for your role, OR a downturn in business due to COVID-19, we are planning to furlough your role.”
3. Explain what furlough means
As you may be aware, the Government launch the “Coronavirus Job Retention Scheme” as a way for businesses to continue employing staff during this period by placing staff on “furlough leave”. The Government have pledged to pay 80% of salaries (up to a maximum of £2,500 per month) for the duration of the scheme.
Therefore, during furlough leave, you will:
- Continue to be employed by us;
- Not carry out any work for us (or businesses associated with us) and;
- Continue to receive 80% of your salary
It’s important to remind staff that their terms and conditions of employment and continuity of employment will not be affected during this period.
4. Explain what happens next
Both you and the employee need to confirm agreement to furlough in writing. Once affective, the employee will not be able to undertake any further work for you for this period of furlough. Nothing. Not an email, not a phone call. No work must be undertaken. The guidelines have been clear on this.
Staff must be furloughed for a minimum of 3 weeks to qualify and you should agree a date to review this with your employee.
Keep in touch with your employee via their personal email/mobile number (you may need to ask them to provide these details if you do not already have them).
Lastly, it is important to explain to employees that you recognise these are extremely challenging and unprecedented circumstances and that decisions have not been taken lightly or without thought to the impact on both the Company but also on individuals.
Show your gratitude for the support shown by the Company – you may see many prepared to go wholly above and beyond for the good of their colleagues and the future security of the Company.
Some Furlough FAQs
1. If an employee refuses to accept furlough leave
If you are reducing the employee’s salary, you must have their agreement to do so as this constitutes a change to terms and conditions. However, if you are intending to keep their salary topped up to 100% then the employee will not be out of pocket and there will not usually be any breach of contract in not giving the employee any work to do, particularly in the current crisis.
It is also worth noting that, if an employee does not agree to the changes, the Company may have to consider other options which may include redundancy.
2. Can an employee take annual leave during furlough leave?
Yes. Annual leave should be paid at the rate of a normal week’s full pay as statutory rights in relation to holiday pay do continue to apply during the furlough.
Employers may require an employee to take annual leave during furlough, provided that you give the proper notice (notice must be at least twice the duration of the leave) and there is nothing preventing the employer from requiring the employee to take leave at specified times.
Employees will also be allowed to roll over their annual leave for up to two years if they are not able to take all their leave this year.
3. What happens if an employee gets ill during furlough?
The guidance confirms that there is no obligation for you to end the period of furlough and move an employee onto the SSP if an employee already on furlough falls ill during this period.
4. How long can they be furloughed for?
At present, the scheme is scheduled to come to an end at the end of June. Employees may be furloughed for a minimum of 3 weeks at a time in order to qualify for pay through the job retention scheme. After each 3 week period of furlough, you should consider whether you should make any changes in terms of how many and which employees are furloughed.
To bring furlough to an end, you should write to the employee asking them to return to work from a specific date.