Redundancies in the UK have reached a record high according to data from The Office for National Statistics. Its labour market overview shows that 314,000 redundancies were made in the three months to September 2020. The country’s rate of unemployment has also risen to 4.8% in the period between June and September.
The rise is likely be due to the Coronavirus Job Retention Scheme (CJRS) initially being thought to end on 31 October 2020 and employers making redundancies in advance of this date. Although the latest extension of CJRS, which was announced on 5 November 2020, sees the CJRS extended to 31 March 2021, the announcement came too late to save many jobs. Employers can re-hire employees that were on the payroll before the end of October, however having already had to make very difficult decisions, there is little incentive for employers to do so. Re-hiring also has cost implications for businesses and must be considered carefully. If you would like further advice on re-hiring please give us a call.
If you have any queries on redundancies or any other aspect of employment law, please contact our employment team on 01228 552600 or 01524 548494.