Redundancies following the furlough scheme

This note provides an overview of the origins of the furlough scheme, its implications for employers in relation to potential redundancies and key factors they need to consider, along with some associated complexities around working from home.

The introduction of the furlough scheme – a new term in UK employment law

The Covid-19 pandemic has seen huge numbers of businesses and workplaces closing or reducing the scope of their operations. In order to avoid large-scale redundancies, the UK Government introduced the Coronavirus Job Retention Scheme in March 2020. Under this scheme, employers can agree with an employee whose work is not needed (or not needed to the same extent) that the employee takes leave of absence from work but remains employed.