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What other options are there to reduce employment costs?

If you don’t want to make redundancies, or if you can’t reduce employee resource, either in a particular department or across the workforce as a whole, then you need to think about alternatives to redundancy.

Equally, you may want to flex the resource you have available to you – without making drastic changes.  For example you may want to consider:

  • unpaid leave and sabbaticals
  • retraining and redeploying
  • forcing annual leave
  • flexible working
  • capability issues
  • lay off
  • short time working
  • reductions in salary
  • reductions in working hours
  • changing to shift working

Related FAQs

Can employees on fixed-term contracts be furloughed?

Yes. Their contracts can be renewed or extended during the furlough period without breaking the terms of the scheme.

If the employee’s contract has not already expired, the contract can be extended or renewed. The employee may be furloughed provided that they were employed on or before 30 October 2020. You must also have made a RTI submission to HMRC between 20 March 2020 and 30 October 2020.

If the employee’s contract expired on or after 23 September 2020, the employee can be re-employed and furloughed. Please note that the employee must have been employed by you on 23 September 2020 and you must have made a RTI submission to HMRC between 20 March 2020 and 30 October 2020.

 

Can I progress an application for EIA development?

Where a development is considered to be “EIA development” (being development where an Environmental Impact Assessment or Environmental Statement is required to be submitted) there are additional statutory publicity and notice requirements over and above the requirements for a standard planning application. Regulations usually require that the environmental statement is to be made available for inspection by the public at all reasonable hours at an address in the locality for a period of at least 30 days. Copies of the environmental statement are also to be made available for people to take away from that address. This clearly requires physical copies to be available at a specified location for a prolonged period of time, which may prove problematic during the current health crisis.

New regulations came into effect on 14 May 2020 which will temporarily suspend the above requirements and will instead require the Environmental Statement to be available for inspection online. The applicant must however provide a certificate to the Local Planning Authority stating what steps have been undertaken to bring the application (and the Environmental Statement) to the attention of people who are likely to have an interest and why it considers that such steps were reasonable.

Should I have a homeworking policy?

If organisations don’t have a formal home working policy, then they should set out, as soon as possible, in clear terms, what is expected of employees from a data protection perspective when working from home. These might include:

  • If someone is using their own device for remote working, ensuring that any devices that hold work-related information have up-to-date anti-virus software and that broadband connections have properly configured firewalls
  • Reminding staff to contact the organisation’s IT department if they encounter any issues with home working, and not to try and resolve any issues themselves
  • Reminding staff that they should notify relevant individuals within the organisation if they consider that there might have been a personal data breach. A breach will still be notifiable even if it does occur at home during the pandemic. These should be logged by the organisation in their data breach log in the normal way
  • Ensuring staff lock their devices whenever they are not using them
  • Where possible, working in a separate part of the home to family members
  • Ensuring confidentiality of information – advising staff not to have phone calls where others are likely to hear the conversation. This might mean moving to a different room, closing the door, or arranging a call for a more convenient time. If employees have smart speakers, you may want to consider advising them to either turn these off, if they are working in the same room as it, or work in a different room
  • Wherever possible, avoid taking hard copy documents home, and, if papers are taken home, never placing those papers in a bin or using a home shredder – any such papers should be shredded back at the office in the usual way
  • Locking any papers in a safe place
  • Not using social media platforms (unless already used and permitted by the organisation) to discuss work matters
  • Advising extra caution with incoming emails as at times such as this there may be an increased risk of fraud, email hacking, spear phishing etc.
  • Avoiding information being sent to personal email accounts (for example, so it can then be printed at home)
  • Reminding staff of your organisation’s Information Security policies, procedures and protocols. These could be emailed to all staff working from home or they could be directed to such documents on the organisation’s intranet, for example

Organisations should also ensure that their remote access systems can cope with increased demand.

Whilst the ICO appreciates the unprecedented nature of this pandemic, it does not mean that organisations can forget about their obligations as controllers of personal data. If a major data security breach were to happen, there is still the possibility of enforcement action where the organisation didn’t put in place good risk mitigation measures.

We have a specialist team of data protection lawyers here at Ward Hadaway, and would be happy to discuss any data protection concerns or issues that you might have.

What amounts to a dismissal?

For the purposes of collective consultation, making someone redundant and/or changing terms and conditions of employment, by termination and re-engagement, is also classed as a dismissal by reason of redundancy and so has the exact same consultation requirements.

How might the transition to a "new normal" impact on contracts?

The workplace will not revert to its pre-Covid-19 state overnight, with social distancing in the work place likely to remain in place for quite some time to come.

This could mean that businesses will need to think carefully about how their capacity will be impacted, and how this will affect their ability to perform contractual obligations.

For example, if a business has an outsourcing contract under which it has to perform a business process, or produce a particular output, will it be able to comply with contractual performance standards whilst social distancing is still in place? In the context of a manufacturing business, what will be the impact on production schedules and delivery dates? There might also be an impact on operating costs, for example if processes are changed and additional shifts are introduced – can these additional costs be sustained?

Businesses need to plan a safe system of work for their employees to ensure they comply with Health and Safety legislation, but they also need to consider how this will impact on their ability to perform pre-existing contractual obligations. Ultimately, contractual arrangements with customers might need to remain on a revised footing for a number of months.

Getting to a point where agreement is reached on allocation of additional costs and/or changes to key elements of a contract such as scope of work, performance standards and delivery date will require co-operation between contracting parties. Again, it is important that any variations that are agreed are recorded properly and follow the required contractual procedures.