Permanent redundancy fears

ONE in four employers expects to make permanent redundancies due to the coronavirus crisis, research suggests.

A survey of 300 human resources managers found that one in five had asked staff not classed as essential workers to still attend their place of work.

The report, by the Chartered Institute of Personnel and Development (CIPD) and People Management magazine, said many employers have found the Government's classification of essential and key workers confusing.

Over half of those surveyed said they will look to furlough staff under the Government scheme to pay 80% of wages, and a similar number had frozen recruitment.

The CIPD urged employers to look at all options before making redundancies to help protect employees' livelihoods and the future of their businesses.

Ben Willmott, head of public policy at the CIPD, said: "This survey shows that many businesses are already considering redundancies, rather than utilising the Government's Job Retention Scheme during the coronavirus crisis.

"Making redundancies should be a last resort once all other options for reducing workforce costs have been taken.

"Organisations that are most successful in protecting jobs and supporting their employees will also be those that are most resilient and best able to recover once this crisis is past."

2,000 jobs at risk after Carluccio's falls into administration

Carluccio's has collapsed into administration, casting a shadow over the future of its 71 UK restaurants and 2,000 employees.

The dining chain, which was founded by Antonio Carluccio in 1991, confirmed it has hired advisory firm FRP to oversee its administration.

It said its directors made the decision "after a sustained period of challenging trading conditions, which have been exacerbated by Covid-19 and the broader issues currently facing the UK's retail and hospitality sector".

Carluccio's faced "significant cashflow pressures" on the back of the pandemic and was therefore unable to meet its financial obligations.

The administrators said they plan to furlough the majority of the company's 2,000 employees whilst they assess all available options.