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Can I use flexible furlough to utilise an employee’s holiday entitlement?

Employees are generally permitted to take holidays during furlough. However, Government guidance has been updated to state that “Employees should not be placed on furlough for a period simply because they are on holiday for that period.” If a period of furlough happens to coincide with an employee’s holiday then you should ensure that there are business grounds to support furlough being used in that instance so that it isn’t just being used as a means to fund holiday utilisation.

Related FAQs

What are the early warning signs that a contractor may be in financial difficulty?

As the project progresses, it is important to continually monitor the contractor’s performance.  Any one or more of the items below can be early warning signs that the contractor is in financial difficulty, and that further actions may be necessary:

  • Decrease in labour or contractor’s personnel on site, and/or rapid turnover of contractor’s personnel
  • Slowdown in progress on site
  • Plant, equipment or materials suddenly disappearing from site for no apparent reason – unpaid subcontractors may unilaterally decide to remove items from site regardless of their contractual rights to do so
  • An increasing number of defects and reduction in the quality of the contractor’s work
  • The contractor seeking changes in the payment arrangements, and in particular early payments
  • The contractor making spurious claims or contra charges
  • The contractor seeking assignment of its benefit of the building contract
  • Late filing of accounts by the contractor at Companies House
  • Unsatisfied court judgements against the contractor
  • Subcontractors and suppliers not being paid or being paid late
  • Rumours in the press, in the industry, on site or elsewhere regarding the solvency of the contractor
  • Unusual visits to site, for example from the contractor’s senior management or other personnel who had not previously been present or are not expected to be present
  • Increasingly aggressive behaviour by the contractor
  • The contractor’s parent company or another company within the contractor’s group displaying any of the above signs
Can we still use the furlough (coronavirus job retention scheme)?

Yes. For further guidance, please see our FAQs section on Furlough.

Will remote court hearings be permitted?

Court hearings have been conducted remotely, with the judgment in Kerry v SSCLG being given via telephone. The Senior President of Tribunals issued emergency Practice Directions which will apply to Property and Lands Chambers’ respectively. This has made provision for remote hearings. Inspections of properties have been suspended with immediate effect, with photographs, videos or external visits permitted where appropriate. Where inspections are essential, the case should be stayed.

How do you support your Mental health first aider (MHFA) team?

We recommend that ongoing support is provided to all MHFA’s beyond completion of the MHFA training. It is necessary to do refresher training (approx. every 3 years) and ideally ongoing ‘continued professional development’ should be provided as well as regular opportunities for debriefing / seeking support. One way of supporting your MHFAs in the workplace is by creating a buddy system amongst the MHFAs. That way the individuals carrying out the role of MHFAs have a support structure in place amongst themselves. All trained MHFAs can also reach out to management to discuss any concerns they have or to seek any further support they need.

Can employers reduce their pension contributions?
  • Yes, if contributions to a defined contribution (“DC”) scheme exceed statutory minimum for auto-enrolment purposes, it may be possible to reduce employer contributions to the statutory minimum, but not further.
  • However, the processes required for reduction of DC employer contributions will necessitate obtaining legal advice:
    • Reducing employer contributions may require changes to the employment contracts of affected staff (as does the furlough process).
    • Reducing employer contributions may also require negotiation with trade unions or other staff representative forums.
    • Where group personal pensions are used, the contractual format may not permit changes of employer contributions, and hence it may also be necessary to enter into a new contractual arrangement. Choosing a new group personal pension plan is a not insignificant task in itself.
    • Employers with at least 50 employees are required to conduct a 60-day consultation process with affected employees if they propose to reduce employer contributions (but please see below).
    • Finally, it may require a change to the scheme rules and engagement with the scheme trustees if the scheme is operated under trust.
  • For DB schemes, specific considerations apply (see the last section, below).