VIDEO EXPLAINER: Alternatives to redundancy – how to flex your workforce after furlough
This free Getting back to business webinar was held on Wednesday 6th May. On this video, employment partner Paul Scope and associate Flora Mewies looked at your options if you need to flex your employee resource or reduce cost without reducing headcount. This may apply across the business or to particular functions. They discussed a range of options when the furlough scheme comes to an end, including: lay off, short time working, reduced hours, reduced pay and other ways to be flexible.
They also discussed the pros and cons of each option, and cover what you will need to undertake with each of these routes.
Related FAQs
The Government has produced workplace guidance for employers, setting out 2 key messages for employers:
- Continue to make workplaces as safe as possible; and
- Encourage workers to heed any notifications to self-isolate and to support them while they are require to isolate
Government guidance can be accessed here: How it works (an overview) and Workplace guidance for employers.
The Competition and Markets Authority (CMA) has issued a number of guidance documents about the application of competition law rules during the coronavirus outbreak. In general, the competition law rules are being relaxed in very specific circumstances.
A number of our clients and networks raised issues in the early stages of the Scheme around the requirement for personal guarantees to access finance under the Scheme. The Scheme has now been updated so that:
- For facilities under £250,000, personal guarantees cannot be taken to support lending under the Scheme.
- For facilities above £250,000, personal guarantees may still be required by a lender but the amount which can be recovered under these guarantees is capped at a maximum of 20% of the outstanding balance of the CBILS facility after taking into account any other recoveries from business assets.
Hosted by Advanced Manufacturing Forum, Partner, Matt Cormack discussed in this webinar how to avoid risks associated with your customer and supply chain contracts during this challenging Covid-19 period.
The webinar covers common questions such as:
- Can force majeure excuse me or my suppliers from paying on time?
- What are the risks to my business if I can’t perform on time due to Covid-19?
- What will happen to my contracts if the Government takes steps to require me to close down my facility?
To watch the full recording, please click here. (To note the recording begins at 10 minutes)
If you have any follow up questions, please do not hesitate to contact one of our lawyers detailed below or use our ‘ask us a question‘ feature.
If suppliers still wish to terminate the contract, they must contact the directors or the officeholder dealing with the insolvency process and obtain their approval to terminate the contract – which, of course, might not be given.
If the continued obligation under the contract to supply goods/services to the customer would place the supplier in financial hardship the supplier can apply to court for permission to terminate the contract. This will involve time and legal expense.