Checklist: Planning your next steps after the furlough scheme

The furlough scheme has been extended to 31 March 2021. Business owners should use this extension period to think about the next steps for their workforce.

We’ve compiled a checklist of suggested next steps for business owners. This includes help with flexible furlough and the legal requirements if you’re forced to make redundancies.

Before you take any action, it’s important to remember that every business is different. Think carefully about what’s best for your own employees and current situation. This information is provided for general information only. It is not intended to amount to advice on which you should rely. Please see our full terms and conditions below and our more detailed website terms of use.

Using flexible furlough to start rebuilding

If you can’t commit to full-time salary costs, flexible furlough gives employers the option to bring staff back on a part-time basis.

1. Look at your cash flow, reserves and forecasted revenue, which should include best and worst case scenarios
2. Consider the impact that part-time workers could have on the business – are there opportunities you’re currently missing out on?
3. If your forecast suggests that you could bring some of your staff back on a part-time basis, think about:

• The workers you want to bring back
• The days you want staff to work (for example, an employee might work Monday to Wednesday, then be furloughed on Thursday and Friday)

Bringing staff back from furlough

You should give staff a reasonable amount of notice if you’re bringing them back from furlough or moving to flexible furlough.

1. Confirm the requirement to return to work in writing, either through a letter or email
2. Clearly outline any safety precautions or processes you’ve put in place that employees should be aware of
3. Bear in mind that people might need training to get up to speed with new systems or tools, like communication apps for remote workers
4. Emphasise that staff on flexible furlough should not work on the days that they are furloughed. This includes checking emails and attending work calls 
5. Don’t forget the psychological impact of the crisis. Many staff members will have experienced anxiety, social isolation and concerns about health and money over the furlough period. Check in with returning staff frequently to provide support and discuss any concerns they might have .
6. Use quick pulse surveys regularly to get near real-time feedback on how people are feeling

Make redundancies when necessary

Redundancies may be necessary if you forecast a long-term reduction in demand or do not think you’ll be able to sustain your workforce when the furlough scheme ends in March.

1. If you’re in a position where you need to make redundancies, take time to plan out conversations with employees. The last thing you want is to rush the process
2. Consult an HR or employment law expert to check you’re following the correct procedure and avoid potential claims for unfair dismissal
3. A lot of business owners have been forced to make redundancies during the crisis. Talk to peers about their experiences and how best to proceed. You can also read about how other business leaders handled coronavirus-related redundancies here.
4. Decide how to deliver the news. It’s best to do it face to face, but you might be limited by social distancing restrictions
5. Think about questions you’re likely to get asked and prepare answers in advance
6. Be clear, concise and honest. Your employee might have sensed it was coming, but it will still be a shock
7. Calculate employees’ entitlement to statutory redundancy pay. The government has a useful tool to do this
8. Update your remaining staff and answer any questions they have. Redundancies naturally make people worry about their own job security, so do your best to alleviate any concerns
9. If appropriate, consider what introductions and support you can provide in helping them find new employment