The Job Retention Scheme, more commonly known as furlough, will come to an end on 30th September. The Government provided this date with the hopes that all furloughed workers will be able to return to work thanks to the reduced restrictions. However, for many businesses who are still struggling with the effects of the pandemic and are yet to return to pre-pandemic trading levels, it can be a worry managing your cash flow and what to do with your employees.

A British Chambers of Commerce survey has found that one in five businesses are planning to make staff redundant as furlough draws to an end at the end of September.

Out of 250 businesses with employees still on furlough, 18% told the Chamber they were likely to make staff redundant. A quarter said they would aim to reduce hours or move staff to part-time working patterns. A little under 15% said they would have to cancel investment plans. 40% did however state the change would have no impact on their employees.

If you’re like the 60%, looking to make the tough decision of how you get your business through when furlough ends, we’ve put together some guidance below on the options you have.

Incorporate strong cash flow management techniques

Keeping a close eye on your cash flow and using tools, techniques and strategies to optimise your cash flow management will help you overcome the challenge of managing without the furlough payments.

Read our top 11 tips for managing your cash flow post-furlough here.

How to reduce employees’ hours

There are many things to consider here including:

  • Will a change in hours be temporary or permanent?
  • Will your staff be able to accept reduced hours and therefore pay?
  • Will your staff accept a reduction in pay?
  • How does this impact your staffing and recruitment for the coming years?
  • Will you be forced into making them redundant if they refuse?

Read our guidance on reducing employees’ hours here.

How to make redundancies

Making redundancies requires some serious thought before going ahead. Whilst it can help your business in the long run, it does entail high cost in the short term. We’ve put together a summary of the rules, requirements, grey areas and details of redundancy payment loans to consider if you are thinking of making redundancies.

Read our guidance on making redundancies here.

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