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Furlough and Redundancies

Furlough and Redundancies – should both be allowed together?

Most countries around the world have stepped up to offer support and subsidies to businesses during the Coronavirus.

Known as a furlough scheme, employees are able to get financial support from the government up to certain limits if they are not required to work.

The schemes across the world vary in relation to their generosity and duration, some offering support up to 2021 and beyond.

In most countries including Italy, Germany, Spain, Portugal and Greece it is prohibited to make employees redundant who have been furloughed, thereby providing some degree of job security during this time of crisis.

The UK, however, does not prohibit businesses with such rules.

This has led to companies such as British Airways putting its entire 42k workforce on notice of redundancy. Their key objective is to force the re-employment of a smaller number on new contracts with considerably less pay, and inferior terms and conditions.

With much media attention, it has become known as #FireAndRehire, and the UK government’s Transport Select Committee found these actions to be a National Disgrace.

▶️ Should UK employers be prohibited from making mass redundancies when using the taxpayer-supported furlough scheme?

See what others said in response here.

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