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Can I rotate staff who are furloughed? Can I put someone on furlough, bring them back when I need to, and then put them back on furlough, as demand requires? And practically how can we deal with this for those who want to rotate?

You can rotate staff on furlough or flexible furlough.

One option is to make it clear in the letter agreeing to being furloughed that there is an open ended right to rotate and to be able to take them off furlough and bring them back and put them back on.

So the employer reserves the ability to rotate by building into the agreement, but only exercises it if it is permissible.

Rotation is quite key for employers who need to make a temporary reduction to their overheads but want to retain the skills base to call back when work picks up. Having furloughed staff return on a part-time basis may reduce the need to rotate.

It also helps in the employer being able to show that they are treating the workforce as fairly as possible and everyone is taking a reduction. Get in touch if you need help preparing the documentation for furlough that will permit rotation or flexible furlough.

Read more about flexible furlough and how this can be used as part of the CJRS.

 

Related FAQs

How do I guard against contractor insolvency in the construction industry?

It is almost impossible to completely guard against the risks associated with contractor insolvency, but there are some steps which can assist in mitigating and managing the risks involved.   To be in the best possible position, it is worth considering the following at the outset of any project:

  • Check the contractor’s financial position – particularly the specific company which will enter into the building contract, as the employer’s rights will be against this company rather than the business as a whole
  • Take legal advice to ensure that the building contract is properly drafted with appropriate provisions to deal with an insolvency event
  • Consider requiring a performance bond and/or parent company guarantee (each serve slightly different purposes)
  • Obtain collateral warranties from the consultants and sub-contractors involved, so that there are contractual rights against other parties if the contractor is no longer able to meet claims
  • Consider requiring retention bonds, advance payment bonds or vesting certificates if necessary
  • Project bank accounts and escrow accounts can also provide some further assurances for the parties involved
What was the eligibility criteria for the Government’s self-employment income support scheme?

You will be eligible if you are a self-employed individual or a member of a partnership and you:

  • have trading profits of up to £50,000
  • earn the majority of your income from self-employment
  • have submitted a Tax Return for 2019
  • have traded in the tax year 2019/20
  • are trading when you apply for a grant, or would be except for Covid-19
  • intend to continue to trade in the tax year 2020/2021
  • have lost trading/partnership profits due to Covid-19

 

What is the NHS coronavirus Test and Trace scheme and how does it work?

The NHS Test and Trace service is operated by the NHS in England to track and help prevent the spread of COVID-19. Where an individual displays symptoms of coronavirus they can be tested to determine whether or not they have the disease. Those with the disease will then be contacted by NHS contact tracers and asked who they have come into close contract with.
Close contact is defined as:

  • Face to face (within 1 metre)
  • Spent more than 15 minutes within 2 metres of another person
  • Travelled in a car or on a plane with another person

The contact tracer will then contact those people with whom the individual has come into close contact and tell them to self-isolate for 14 days.

What perceived gaps do you see in the Building Safety Act 2022 (especially in terms of pending consultations and secondary instruments)?Comments on the value of the Martlet v Mulalley judgment in fire safety cases/unsafe cladding cases

The Act was obviously subject to much debate and criticism as the Bill passed through Parliament. It is difficult to properly assess any gaps until after the necessary secondary legislation has been published and comes into force (along with the remainder of the Act), but some of the likely issues include:

  • The impact on the insurance market, and the (lack of) availability and increased cost of insurance in light of the provisions of the Act
  • How the introduction of retrospective claims will affect the market, both in relation to how parties might go about trying to prove matters which are 30 years old, but also the lack of certainty for those potentially on the receiving end of these claims which they previously had by virtue of the Limitation Act provisions
  • Whether the definition of higher risk buildings is correct, or will require some refinement.

The Martlet v Mulalley case provides some useful observations and clarifications, for example that designers cannot necessarily rely on a ‘lemming’ defence that they were simply doing what others were doing at the time, that ‘waking watch’ costs are generally recoverable, and commentary on certain specific Building Regulations. The judgment however made clear that much of the case turned on its specific facts, so it is useful from the perspective of providing some insight as to how the Courts will deal with cladding disputes in future, rather than setting significant precedents to be followed.

Does this apply to bankruptcy petitions?

No. This bill relates to corporate insolvencies only. Should you require any advice as to personal insolvency situations, please contact our team.