Reductions in salary
An obvious cost cutting measure is to reduce salaries, either temporarily or permanently. If you are to seek a reduction in salaries, this should be done fairly – either across the board or by selecting teams/individuals based on objective business reasons.
Note that this cannot be imposed without significant risk. Without agreement, this would need fair selection and consultation.
Related FAQs
We have developed a toolkit to assist with compliance. The Toolkit contains a specimen contract; detailed guidance; step by step guides and flowcharts; details of the factors to take into account for the status determination test; procedures for challenging the determination; and standard letters for the process. Click here to fill in a form and register your interest in the Toolkit, which contains:
- Detailed guidance in the form of Key Facts
- Employment status checklist
- Employment status assessment flowchart
- Status questionnaire and guidance
- Letter confirming self-employed status (agency)
- Letter confirming employed status (agency)
- Letter confirming self-employed status (direct with PSC)
- Letter confirming employed status (direct with PSC)
- Status disagreement process guidance
- Status disagreement process flowchart
- Letter confirming outcome of status disagreement process
- Consultancy agreement
Employers will need to be flexible with employees who are unable to return to work at present due to childcare difficulties. While schools have reopened, a period of isolation may result in employees having to keep children off school/nursery and therefore have childcare issues. Some employees will be able to manage this with their partner and extended family, whereas others will not. Where an employee simply cannot make any other arrangements to care for their children in the short term then they will be unable to return to work until that situation changes. Any dismissals on the basis that someone is unable to return to work as a result of lack of childcare are likely to be unfair, at least in the short term where such employees may well be able to demonstrate that they had no options available to them.
The government has also confirmed it will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser on 23 April – pledging a minimum of £20 million.
Similar to the position for claims between 1 August 2020 and 31 October 2020, for claims between 1 July 2021 and 30 September 2021 there will be a cost to businesses of furloughing staff, which will gradually increase until the scheme closes at the end of September as follows.
- From 1 July 2021 employers will be required to contribute 10% of wages, with the Government contributing 70%.
- From 1 August 2021, the employer contribution increases to 20% and the Government will contribute 60%.
- 30 September 2021: scheme closes.
Employees will continue to receive 80% of their current wages, up to £2,500 a month.
It is absolutely critical to creating a safe workplace and to making workers feel secure.
This could include floor markings every 2m (as we’ve seen in grocery stores), stopping or limiting/staggering access to communal or common areas such as toilets and kitchens, rearranging workstations to maintain a 2 metre distance or, where this is not possible (for example in manufacturing facilities or production lines), erecting physical barriers and avoiding face to face working, encouraging the use of stairs and discouraging lift-use, designing a one-way system for entry and exit and looking at aircon/heating systems to see if any modifications are possible to prevent the spread of airborne particles. If you can increase ventilation in your workplace, it will help reduce risk.
The government has published detailed social distancing guidance for workplaces across sectors including manufacturing, retail, offices, construction and transport; it has also promised to continue to add to this.