The Coronvirus Job Retention Scheme (CJRS) will come to a close on 30 September 2021.
The grant claims for employees furloughed in the month of September are 60% of the employee’s usual pay up to a maximum cap of £1,875. Make sure that you make your final claims for the month of September by 14 October and make any adjustments by 28 October 2021.
The end of furlough may be the trigger for many businesses to assess their staffing levels, and many may be considering making the tough decision about which staff to make redundant.
DEALING WITH REDUNDANCIES CORRECTLY
If you find it necessary to make redundancies ensure that you seek relevant legal and HR support and make certain that all key steps are followed as far as employment law is concerned.
It is also important to treat any payments on termination of employment correctly for tax and national insurance purposes. In genuine redundancy situations the first £30,000 paid on termination of employment is tax free but many employers get this wrong.
The £30,000 includes statutory redundancy pay and any enhancement from the employer as well as continuing benefits such as private health insurance. The excess is subject to income tax and employers’ national insurance. We can of course assist you with the process to ensure that the redundancy process is dealt with correctly.