By now, we are all aware of the Coronavirus Job Retention Scheme ("CJRS") and what it means for businesses and employees.
Last week, Chancellor of the Exchequer, Rishi Sunak, confirmed that whilst the Furlough Scheme will be extended until October 2020, there will be some changes to what companies can claim under the CJRS and we wrote more information about it here.
Unfortunately, it appears that many news outlets are reporting that celebrity chef Gordon Ramsay's chain of restaurants have been using the funds from the CJRS to pay their employees their contractual notice period following dismissals as a result of the impact that Covid has had on the business. It also appears that some employees who were let go, have been encouraged to apply for lower paid roles instead, or they would remain on the furlough scheme for the duration of their notice period.
It should be noted that whilst the guidance and rules of the CJRS prevent employers from using the funds for redundancy payments, there is nothing preventing employers from using those payments to pay the notice period for the employees in order to avoid further struggles for the business. This does not absolve companies from following the appropriate redundancy process when there is a genuine redundancy situation going on.
Do you need guidance?
Here at Gepp, we appreciate that the current situation with its ever-changing regulations might cause some headaches to some businesses and employers. Therefore, we continue to offer a free half an hour consultation to both new and existing clients so please do not hesitate to send us your details to firstname.lastname@example.org and take advantage of our offering.