header-logo header-logo

COVID-19: Furlough scheme could lead to ‘mass litigation'

29 April 2020
Issue: 7885 / Categories: Legal News , Covid-19 , Employment
printer mail-detail
‘Mass litigation post-pandemic’ could be brought unless the government addresses ‘significant flaws’ in its furlough scheme, employment lawyers have warned
Under the Job Retention scheme etc the government pays up to 80% of salary of each furloughed worker, up to a maximum of £2,500 per month for three months.

However, the Employment Law Association (ELA) has highlighted ‘significant flaws’ in the system, which could leave both employer and employee vulnerable, in a letter to the Department of Business, Energy and Industrial Strategy (BEIS) this week.

According to the letter, an ELA working party has identified ‘gaps in the scheme and conflicting government guidance’, which could result in claims being issued in the employment tribunal. Its questions concern redundancy, annual leave and employee representatives.

The questions include: whether acting as an employee representative constitutes ‘work’ for the purposes of furlough, and therefore breaks the furlough period and makes them ineligible for government support?

The working party also asks: can an employer commence collective consultation on proposed redundancies while employees are on furlough leave? Does an employer have to collectively consult when initiating furlough scheme and if so, when? And, can an employer force an employee to take annual leave during furlough?

Paul McFarlane, chair of ELA’s legislative & policy committee, said: ‘It’s essential that the government responds to this paper and provides clarity on the gaps in their guidance which currently places employers and employees in a vulnerable position.

‘Whilst we navigate through these uncharted waters, support is needed and those most vulnerable must be protected, which is why clear guidance is so important. The working party has identified a number of areas where conflicting guidance is given and urge the government to be transparent so employers are protected from litigation down the line.’

@emplawyers

Issue: 7885 / Categories: Legal News , Covid-19 , Employment
printer mail-details

MOVERS & SHAKERS

University of Manchester: The LLM driving tech-focused career growth

University of Manchester: The LLM driving tech-focused career growth

Manchester’s online LLM has accelerated career progression for its graduates

mfg Solicitors—Philip Chapman

mfg Solicitors—Philip Chapman

Regional firm strengthens corporate team with partner hire

Switalskis—Sally Christey, Mathew Abiagom & Cyman Kaur

Switalskis—Sally Christey, Mathew Abiagom & Cyman Kaur

Commercial property team expands with trio of appointments

NEWS
Judging is ‘more intellectually demanding than any other role in public life’—and far messier than outsiders imagine. Writing in NLJ this week, Professor Graham Zellick KC reflects on decades spent wrestling with unclear legislation, fragile precedent and human fallibility
The long-predicted death of the billable hour may finally be here—and this time, it’s armed with a scythe. In a sweeping critique of time-based billing, Ian McDougall, president of the LexisNexis Rule of Law Foundation, argues in this week's NLJ that artificial intelligence has made hourly charging ‘intellectually, commercially and ethically indefensible’
From fake authorities to rent reform, the civil courts have had a busy start to 2026. In his latest 'Civil way' column for NLJ this week, Stephen Gold surveys a procedural landscape where guidance, discretion and discipline are all under strain
Fact-finding hearings remain a fault line in private family law. Writing in NLJ this week, Victoria Rylatt and Robyn Laye of Anthony Gold Solicitors analyse recent appeals exposing the dangers of rushed or fragmented findings
As the Winter Olympics open in Milan and Cortina, legal disputes are once again being resolved almost as fast as the athletes compete. Writing in NLJ this week, Professor Ian Blackshaw of Valloni Attorneys examines the Court of Arbitration for Sport’s (CAS's) ad hoc divisions, which can decide cases within 24 hours
back-to-top-scroll