The Press and Journal (Inverness, Highlands, and Islands)
Demistifying furlough
The energy industry has taken another battering. But unlike previous economic hurricanes, this time centrally funded support was made available within weeks in the form of furlough leave and pay.
Rather than being “good news”, it is a mark of the devastating impact on the UK economy.
The “Sunday name” of this new F-word is the Coronavirus Job Retention Scheme. This nomenclature has led to some misconceptions.
Many believe jobs must be retained or that jobs should not be retained if the reason for redundancy was unrelated to Covid-19 (such as commodity price drop). But furlough pay is not a universal income and eligibility criteria has been widely framed.
Employers across the land have been tasked with administering the furlough scheme, within parameters set by updated Treasury directions and HMRC guidance. The current guidance mandates that employment law must be complied with.
So the furlough scheme does not inoculate employment contracts from redundancy situations or immunise them from holiday legislation or vaccinate them from lawful notices of dismissal.
Rather, business leaders must shore up their businesses and take tough decisions, adjusting business plans to reflect the new future they face. By necessity, employers have been given discretion to strike the right balance between all the competing interests.
Although not everyone agrees, many employers have taken the view that they can lawfully start redundancy consultations or seek to vary contractual benefits (whether temporarily or permanently) with employees on furlough.
Workers can be given notice to take paid holidays during furlough. Employees can serve their notice while still furloughed. Employees, their representatives and trade unions may challenge these decisions, which could lead to collective grievances and contentious disputes in employment tribunals.
CHANGES
A scheme originally expected to last three months, finishing at the end of May, will now continue until October 31.
At the heart of the furlough scheme was the requirement that those paid via PAYE would receive reduced pay funded entirely by the UK Government, provided they do no work for the employer. Changes to the scheme from August 1 were to be published by the end of May, so keep an eye on the online version of this article for updates.
But the press has already reported, based on leaks, that the following amendments will be introduced:
l Furlough pay will remain at 80% but employers will be expected to contribute 20-30%, with the government paying 50-60%.
l Employers can bring furloughed workers back for some paid work (at full pay) without interrupting furlough leave.
l Government subsidy for employer’s NICs will stop (though support for employers’ pension contributions will continue).
RETURNING FROM FURLOUGH AND REBOOTING BUSINESSES
As businesses are actively encouraged to return their employees to Covid-secure workplaces, there is a duty on employers to ensure a system of safe work is developed, risk assessed and implemented.
Offshore work which has continued despite Covid-19 leads the way on what can be done safely. Collaboration between industry and the helicopter companies has meant safety precautions have been introduced and essential travel offshore is possible.
For onshore workplaces, the UK Government guidance refers to high levels of deep cleaning and sanitary practices, staggered shift patterns, continued social distancing and the use of PPE as measures which will be instrumental in providing a safe environment for working employees.
With safety at the heart of all activity in the energy sector, the mindset of this industry is preprogrammed to meet these new challenges.
Employers should be alert to the risks arising from complaints made on health and safety grounds. Again, safety reps or collective grievances are possible. Employees who make disclosures and refuse to work on the grounds of a reasonable belief in serious or imminent danger in the workplace could have valid claims if treated detrimentally or dismissed.
INTERNATIONAL TRAVEL
The UKCS offshore workforce is a global community, many of whom travel internationally for work.
Although the Home Office announced it was imposing a 14-day quarantine on people arriving from the UK, separate rules apply for these essential offshore workers. Extra PPE or safety measures may be advisable. Employees who argue they have caught coronavirus because of an employer’s failures could make claims in the future.