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By Tracey Ward, Head of Business Development & Marketing at Generali UK Employee Benefits
Although change in business became the norm pre-pandemic, it arguably didn’t become any less unsettling. Of course, all of this was taken to a whole new level over the past 18 months.
And now, as furlough ends and the prospect of redundancy, reduced hours and / or pay for many looms, we ask what could and should HR be doing to best support their people, specifically those earmarked for redundancy? What do you need to watch out for from an employment law perspective, particularly when people are off sick? And, how might benefits such as the Employee Assistance Programme (EAP) – whether embedded in group risk or healthcare products, or standalone – be put to best use?
A look at EAP usage during the last lockdown, at the start of this year, reveals just how important such services became to many during times of change.
“Between January and April 2021, LifeWorks saw a 33% increase in calls related to workplace change. By the end of April, this represented over 9% of all our incoming calls,” says Luke Prankard, Director of Alliances - EMEA, LifeWorks, Generali UK’s EAP partner.
Life beyond furlough
Although almost three million people have been moved off furlough since the scheme began, according to government figures, nearly two million remained on the scheme by the end of June this year. The government backed scheme has now ended (as at 30 Sept) and many employers and employees will no doubt be facing some tough choices.
The end of the last year saw the largest spike in redundancies since the financial crisis of 2008, according to the Office for National Statistics.
While this has since reduced, a study in August by the British Chambers of Commerce found that nearly one in five companies were considering redundancies as they faced the end of the furlough scheme.
For the other four in five, return to work on pre furlough terms and conditions isn’t necessarily a given. Some employers might look to reduce payroll costs without making redundancies. For example, reduced hours and pay, same hours but reduced pay, asking staff to take unpaid or part-paid leave, extending furlough without the government grant.
In most circumstances, anxiety in some shape or form is likely to feature.
Balancing the practical with the emotional
And while all employers will have in place policies and procedures to help with the practicalities of such change, it’s worth also bearing in mind various products and services you might already have in place to help with the emotional aspects; as they did during the various lockdowns.
For example, close to half of the UK workforce – around 14 million individuals (and their families) have access to an EAP, according to the EAP Association.
Many of these are embedded within group income protection products and are likely to also sit alongside an array of wellbeing and early intervention (EI) services. While the latter is focused on returning people to work – and therefore not relevant where redundancy is concerned – group income protection providers often receive EI referrals for employees who are impacted by big change within the business. And some of the post furlough scenarios described above – even where job loss isn’t a factor – might well be classed as big change.
Kay Needle, Early Intervention Co-Ordinator at Generali UK, explains: “We often receive EI referrals for individuals who are impacted by restructures and changes within the business though, and in those cases the EAP is going to be the most relevant resource in most cases.
“However, if an employee has a particular medical condition which is worsened by the situation, we may offer more comprehensive support. For example, an existing mental health diagnosis or condition which can be impacted by stress.
“The support offered could then include vocational rehabilitation and/or counselling support as appropriate. Or may extend to other services if the condition is of, for example, a physical nature.”
So, back to the EAP and what kind of support is available?
As well as 24/7/365 access to qualified counsellors who can help employees and their families manage the anxiety associated with the end of the furlough scheme in the UK, Luke explains that the EAP also affords access to a comprehensive content library that can be leveraged for career development and support.
“This includes coping strategies to manage the impact of job insecurity on employee financial, mental, social, and physical wellbeing, as well as resources for managers to better support their direct reports in time of uncertainty. Through LifeWorks’ approach to supporting holistic wellbeing, our satisfaction survey also revealed that 96.1% of those surveyed would recommend LifeWorks services to their peers and are willing to use the service again.”
The employment lawyer’s view
Of course, where redundancy support is concerned, there are many factors to consider. We asked employment lawyer Vanessa Latham, Partner, BLM Law, for some key pointers, including the implications of redundancy whilst an employee is sick / absent. Here’s what she had to say:
The extended government furlough scheme, in which employers can reclaim pay to furloughed staff, ends on 30 September.
This may give rise to redundancy situations where employers have faced a downturn in business or may want to restructure due to changes that have occurred since the pandemic commenced.
The usual redundancy processes will apply, which includes the requirement for employers to consult and to consider alternatives to redundancy.
Rather than making staff redundant, employers could offer those employees the opportunity to remain furloughed. The employees would have to agree to this and the terms of that would be open for discussion (and could include a much reduced percentage of pay, or even no pay, which the employee may prefer as an alternative to redundancy). It is important to bear in mind, if the employer pays any more after 30 September to furloughed staff they would not be able to recover that from the government. This may be an attractive option if they hope there will be an increase in business in the future.
The government guidance on furlough does not specifically state whether redundancy consultation can be carried out during a period of furlough (when work is prohibited) but it seems unlikely that engaging in consultation would be considered ‘work’ so is likely to be allowed.
Employers can, and should, engage in a consultation process with employees on sick leave and they should be provided with all the same information as staff who are not absent.
For employees not physically present in the workplace – whether because of furlough or sick leave, consultation meetings can be carried out via telephone or video-link. If the employee does not feel well enough to attend remotely, information can be provided in writing to the employee, who can be asked to provide written questions or responses.
When identifying staff for redundancy, it is important to avoid anything that might be discriminatory against an employee on sick leave (who may be disabled); for example, taking into account sick leave when deciding the selection criteria.
