Redundancy expert calls for early Government decision to support employers and employees

According to an expert on supporting employers and employees through redundancy, organisations are calling out for early Government clarity on the Coronavirus Job Retention Scheme (CJRS).

A recent CIPD Report The Future of Furlough – Recommendations for now and for any future wage subsidy has urged the Government to take prompt action ahead of the March budget to extend the CJRS until the end of June. It also calls for the introduction of a lower limit to the scheme, set at the National Minimum Wage, to help protect those on the lowest wages and least likely to benefit from any employer top-ups.

Chris Parker, managing director of Renovo, a business that supports employers and employees through redundancy and restructuring, explained on behalf of the employers it helps, “Clients are telling us that any additional support they can gain to better equip displaced employees so they can move on quickly and successfully post redundancy will be very welcome.

“An extension to June, announced now, would give employers the time to make much clearer assessments on the genuinely viable and non-viable roles within their organisations. This is not about employers seeking indefinite state support for unviable jobs but about creating a clearer picture from which to make essential workforce plans.”

Renovo also welcomes the report’s recognition of a more forward-thinking approach to skills development as part of the scheme to support those employees who lose their jobs as a result of restructuring in 2021. The report suggests employers in England could link the furlough scheme to employee support, using their apprenticeship levy funding to re-skill employees or be provided with outplacement support if made redundant or potentially set aside central funding for smaller businesses to help retrain employees during furlough periods.

“Providing employers with the flexibility to use their apprenticeship levy funding for targeted skills development or outplacement support for employees impacted by furlough or redundancy seems like a very sensible suggestion. It will help somewhat lighten the impact for both parties, helping impacted employees gain new skills or better understand how to manage today’s job market.”

Renovo is the UK’s leading outplacement services specialist, supporting employers and employees through redundancy and restructure.