The UK government will announce a “roadmap” for the country’s exit from lockdown by no later than the end of this week. Published reports suggest that we should expect to hear that the lockdown will be extended until the last week of May although the exact timing is “a live issue” according to government sources quoted in media reports. While the timing and the specifics remain uncertain, it is advisable for our clients to start making preparations for what is likely to be a staged return to the workplace.
Health and safety
An employer’s obligation to meeting health and safety requirements in the workplace is always of paramount importance but it is arguably now more important than ever given the increased risk of employee related health and safety claims in a post-lockdown world. Trade unions have already issued stark warnings to employers that inadequate measures to protect employees from contracting Covid-19 upon a return to work may result in legal claims. This could be particularly difficult for companies to sustain that are already under financial pressure from the crisis.
Employers should begin with carrying out a risk assessment that evaluates the risk of infection and transmission in the workplace and then develop plans to minimise those risks which incorporate the Health and Safety Executive’s latest information and advice and the government’s latest Coronavirus guidance for employers.
In summary, an employer’s plans will likely need to include:
Recalling furloughed staff
If the needs of an employer’s business warrant the recalling of furloughed employees, reasonable written notice of the return to work will be necessary. If some but not all staff will be recalled, employers will need to give careful consideration to the decision-making processes through which employees are recalled. Fair and objective criteria should be used in deciding who is to be recalled so as to avoid future discrimination claims and each decision carefully documented.
Particular care will need to be taken in the recalling of vulnerable employees and the duty to make reasonable adjustments will apply. The return of furloughed employees with caring responsibilities for children or others will need to be carefully managed to prevent sex discrimination complaints.
Further furloughing and reduced working hours
The government’s Coronavirus Job Retention Scheme (CJRS) is set to end on 30 June 2020. Some employers may find that timescale does not suit the needs of their business and they would like to continue to keep employees furloughed for a further period of time. Employers can continue to keep employees furloughed on the same terms as the CJRS though we note employees would need to maintain the same terms with the employer bearing the costs of those terms (i.e. 80% of an employees’ wages, employer NIC’s etc.). Employers are advised that they should seek agreement from employees who they wish to keep furloughed for a further period, assuming the furlough letters initially sent to employees contained an end date for the period of furlough. Employees should be written to as soon as practicable setting out the employers’ proposal for a further period of furlough.
Another option for employers whose business needs are reduced post-lockdown is to seek the agreement of employees to reduce their working hours on a temporary basis but this option carries risks including future claims for breach of contract and/or the eroding of relationships with employees who have helped the business to carry on as a going concern throughout the crisis. Such a decision should be done in close consultation with our employment law team.
If recalling furloughed employees or amending their current terms is not feasible, employers may need to take difficult decisions to make employees redundant and may consider doing so before other employees start to return to the workplace. Again, this should be done in close consultation with our employment team in order to reduce the risk of employment claims arising from an unfair redundancy process being followed. The correct legal processes must be followed including consulting with staff and collective consultation periods in certain circumstances involving significant numbers of employees. For those employees who are at risk of redundancy and are already furloughed, it is possible to hold consultations during the furloughed period. Clients are reminded that employees are who made redundant will still need to be paid their contractual entitlements including notice pay or payment in lieu of notice, holiday pay and redundancy pay which will be at the cost of the employer.
Should you have any further questions or require any assistance with your employment arrangements during this difficult period, please do not hesitate to contact either one of our Co-Heads of the Employment team, Partners Tamara Ludlow and Ewan Keen.
In a judgment handed down on Tuesday 19th January, SMB won a claim to recover the domain name blackjack.com on behalf of our client, Hanger Holdings.Read more
On 4th January the Prime Minister announced that a new national lockdown would come into force from midnight 5th January as a result of the continuing coronavirus pandemic.Read more
SMB advise Stagwell Group LLC, the digital marketing investment group, on its acquisition of London based digital marketing agency, Forward3D Group.Read more