According to a recent survey, one in three employers are expected to make some staff redundant from between July and September 2020.
Figures shared by the BBC Freedoms of Information have also revealed that employers planned more than 300, 000 redundancies in June and July, amidst the Covid-19 pandemic.
Since August, the level of Government grant provided through the Coronavirus Job Retention Scheme (CJRS) has gradually tapered down.
In October, the furlough scheme, which temporarily pays the wages of many workers, will end. Understandably, this has ignited worries over more job cuts towards the last quarter of 2020. One-third of businesses are estimated to make redundancies, according to data published by the Chartered Institute of Personnel and Development.
A spokesperson for the Government said: “We are continuing to support livelihoods and incomes through our Plan for Jobs to ensure that nobody is left without hope or opportunity. This includes a £1,000 retention bonus for businesses that can bring furloughed employees back to work.
“We are also creating new roles for young people with our Kickstart scheme, creating incentives for training and apprenticeships, and supporting and protecting jobs in the tourism and hospitality sectors through our VAT cut and last month’s Eat Out to Help Out scheme.”
The Government has therefore called for firms that are planning on making redundancies of 20 or more, to notify them with an HR1 form.
From the number of notifications made by firms and the numbers of jobs that were already at risk, this is an indication that a large number of people will be made redundant. Although, as employers planning less than 20 redundancies will not need to notify the Government, the figures will be higher.
Recent research found that 51 per cent of employers are unsure how the redundancy process works after furlough, leaving them worried about making redundancies in agreement with the legal requirements. A common concern was how to calculate redundancy pay.
Rather than the reduced rate of pay employees may have been granted through the CJRS, the Government stated that any worker on furlough leave that loses their job will receive a payment that is based on their usual wage. Statutory notice pay should be based on this too and the period depends on the employee’s length of service.
At Ardens Solicitors, we can help you navigate the redundancy process. For help and advice on matters relating to employment law, contact our expert team today.