As a result of the Coronavirus the Government have announced a package of measures, in an attempt to prevent mass unemployment and protect jobs, which are unprecedented in our time and will have dramatic consequences for employers, employees and self-employed alike.
The Government have confirmed where employers furlough or “lay off staff” as a result of the Coronavirus they will pay 80% of that employee’s salary up to a maximum of £2,500 per month and many employers have already taken steps to take advantage of this Government Scheme,
Whilst this is a welcome move there is still a large degree of uncertainty surrounding the exact provisions of the Scheme and we expect that there will be considerably more detail and structure to follow, which will be welcomed by employers and employees (and those advising them) alike.
What should be recognised is that the new Government Scheme remains subject to existing employment law legislation and for employers there are obviously concerns when changing contract terms of existing employees or making the difficult decision to lay employees off. For this reason there are circumstances where it is appropriate for employers to ask their employees enter into carefully worded agreements, known as Settlement Agreements, to regulate the conditions upon which change of contract terms or layoffs are implemented.
Steve McLaren and Sally McCartney in Kippen Campbell LLP’s Employment Law Team are advising employers and employees alike in relation to the Government Scheme, the new regulations and how these will affect them.
Whether you are an employer considering laying off employees or making employees redundant and want to ensure that you are doing so in accordance with the current employment law guidelines or an employee who finds themselves out of work as a result of the COVID 19 and are concerned that their employers have not followed the necessary legal procedures to do so, you can contact Steve or Sally for advice
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