With furlough funding set to be withdrawn, keeping staff employed on their current terms may no longer be viable, and a reduction in employees’ hours or pay could be the only way to survive post-pandemic. Given staff can account for as much as 70 per cent of total business expenses, it’s hardly surprising it tends to be the first option organisations consider when looking to reduce outgoings.
But with three-quarters of the UK public against this approach, unions calling for a ban, and a number of associated legal risks, businesses considering this strategy should proceed with caution.
Read more in HR Review.
