The chief executive of the CIPD has contacted Rishi Sunak with a proposal to extend the current furlough scheme again, this time until June. A further extension of the scheme would provide people in certain industries with extended support in the run up to summer. For some people it would possibly amount to a whole year of being on furlough while being unsure of what the next steps are for their place of work.
With the arrival of the vaccine, it is fair to say that everyone will still be adjusting to this and it won’t make the pandemic disappear overnight albeit a massive step forward. Many companies and employees will still be feeling the effect of the coronavirus even in light of having a vaccine. Many cities are operating under restrictive tier systems which still puts pressure on industries to survive financially. The economic strain means that placing employees on furlough is the only prudent option to ensure that the company can eventually operate as normal and avoid redundancies.
Even if the terms were revised to ensure an extension was within the realms of possibility, I’m sure many employers would be thankful for it. In April or May, the scheme could decrease from the 80% down to 60% and this way employees would still get over half of their pay. The JSS which was supposed to take over the furlough scheme in November may still be brought into force if the extension is not imposed. This would mean employees have to work a certain amount of their hours and get paid accordingly.
A massive benefit of furlough is that it is seen as an alternative to redundancy and although in coronavirus times people cannot always be certain that they have a job to go back to, employees know they still have a better chance than the company rehiring as they are experienced and will be eager to get back. Furlough can also save the company on various running costs meaning they will be in a more desirable position once coronavirus restrictive measures are no longer in place.
Therefore, it is definitely something that would lift morale, and ensure an easier transition into the changes amounting from the coronavirus. Once the vaccine is more underway and the effects are more prominent, then measures will surely be eased and some sense of normality will be restored.