Who Gets Furloughed? Hospitals' Tough Decisions Amid Covid-19

The decision to furlough employees is a complex one and can depend on a variety of factors, including the financial situation of the hospital, the nature of the work, and the willingness of employees. While some hospitals may ask for volunteers to be furloughed, others may need to make urgent decisions based on their ability to continue operating. In the case of hospitals, the nature of the work means that employees cannot simply be replaced by others, and so the decision to furlough is a delicate balance between maintaining operations and reducing costs. The financial support provided by governments, such as the Coronavirus Job Retention Scheme, can also influence the decision, as can the potential for discrimination.

Employers should discuss proposals with staff and get written agreement

When deciding who to furlough, employers should discuss proposals with staff and obtain written agreement. This process should involve several steps. Firstly, employers could initially ask for volunteers to be furloughed. However, if there are more volunteers than needed, or if there are not enough volunteers, the employer will need to make a decision. This decision may depend on the employer's financial situation and how urgently employees need to be furloughed. If there is no immediate financial pressure, a comprehensive procedure should be followed to avoid discrimination.

When deciding who to furlough, employers could consider factors such as seniority, with those higher up in the hierarchy being more likely to stay. Employers could also ask employees to decide among themselves, considering factors such as childcare needs. Those with childcare responsibilities, for example, may be happy to take a pay cut and be furloughed. Employers could also offer incentives, such as a bonus, to those who stay on.

Once a decision has been made, employers must notify the chosen employees and confirm the furlough leave in writing. This confirmation should include details of the changes to the employment contract, such as reduced pay or hours. It is important to note that most employment contracts do not allow employers to reduce pay or hours without the employee's agreement. Therefore, employers should aim to reach an agreement with the employees and make changes to the contract by mutual consent.

Additionally, employers should be aware of the eligibility criteria for the furlough scheme. Employees who are fully furloughed cannot undertake any work for the employer or any associated organisations. They can, however, participate in training or volunteer for another organisation. For employees on flexible furlough, their cap will be reduced proportionately to the number of hours they work. Employers should also be mindful of employees who may be on sick leave or maternity leave, as these employees can also be furloughed under certain conditions.

Employers can ask for volunteers but may receive more than needed

Employers can ask their employees for volunteers to be furloughed. However, they may receive more volunteers than they need to furlough. In such cases, the employer must decide which employees to furlough. This decision may depend on the employer's financial situation. If the employer needs to urgently furlough employees to continue trading, a limited selection procedure carried out quickly is likely to be acceptable. On the other hand, if the employer does not have immediate financial concerns, it is more reasonable to follow a comprehensive procedure. It is important to avoid discrimination when deciding who to furlough.

There are no easy answers to the question of who to furlough. One option is to decide based on seniority, although this may not be feasible in all organisations. Another option is to let the employees decide among themselves; some employees may prefer to be furloughed due to childcare needs, while others may want to stay on full pay. If possible, the employer could offer a bonus to those who stay.

It is also important to note that furloughed employees cannot undertake any work for the employer, but they can take part in training or volunteer for another organisation. The employer must confirm the furlough leave to the employee in writing, and the employee must agree to the change in their employment contract. The government will pay 80% of the furloughed employee's wage, up to £2,500 per month, and the employer must pay NI and pension contributions on the full amount.

Employers can re-employ anyone they have made redundant and furlough them, provided they were still employed and on the payroll on the relevant date. This also applies to employees on fixed-term contracts that expired after that date, as long as other eligibility criteria are met. Furloughed employees who become ill must be paid Statutory Sick Pay (SSP), and employers can decide whether to move them to SSP or keep them on the furloughed rate.

Employers may decide based on their financial situation and urgency

When deciding which employees to furlough, employers may consider their financial situation and the urgency of the decision. If an employer needs to urgently furlough employees to continue trading, a limited selection procedure carried out at short notice is likely to be acceptable. In this case, the employer may first ask for volunteers to be furloughed. However, if there are more volunteers than needed, the employer will have to make further decisions.

If there is no immediate financial pressure, it is more reasonable for employers to follow a comprehensive procedure. This could include discussing the proposal with staff and making changes to employment contracts by agreement. Employers should also consider whether they need to consult with employee representatives or trade unions. It is important to avoid discrimination when making these decisions.

Some businesses may decide based on the scope for hierarchy within the organization. For example, a shop or cafe may have less scope for hierarchy than a corporate office. Employers could also consider employees' personal circumstances, such as childcare needs, and whether they can afford to offer bonuses to those who stay.

Additionally, employers can decide whether to top up wages by paying the extra 20% or anything above the wage cap. They may also consider re-employing anyone previously made redundant and furloughing them, provided they were still employed and on the payroll on the specified date.

Employees can request furlough but the employer doesn't have to agree

Employees can request furlough, but the employer does not have to agree. The Coronavirus Job Retention Scheme, or furlough scheme, offers vital support to businesses. The government will pay 80% of a furloughed employee's salary, up to £2,500 a month, to ensure businesses do not need to make employees redundant and then rehire once the lockdown ends.

Employees can request furlough, especially if they are in high-risk categories, have pre-school-aged children, or are unable to work due to sickness or self-isolation. However, the employer ultimately decides which employees to place on furlough. This decision may depend on the employer's financial situation and the urgency of the situation. If an employer needs to urgently furlough employees to continue trading, a limited selection procedure is likely to be acceptable. On the other hand, if there are no immediate financial concerns, a more comprehensive procedure should be followed.

It is important to note that employers should maintain good employment relations and discuss proposals with staff. While employees can request furlough, it is the employer's responsibility to decide which employees to furlough and whether to agree to the request. Employers should also be aware of potential discrimination issues and seek guidance if needed. Additionally, employers must provide written confirmation of furlough leave to employees and make the necessary changes to employment contracts.

Furloughed employees cannot work for their employer during the furlough period, but they can undertake training or volunteer. Employers should also be aware of the rules regarding holiday pay and statutory holiday carry-over during furlough. Furlough provides a way for employers to retain their employees during difficult times, but it is a mutual decision that requires agreement from both parties.

Employers can re-employ and furlough those made redundant before 23 September 2020

While there is no specific information on how hospitals decide who to furlough, employers, in general, can re-employ and furlough employees who were made redundant before 23 September 2020. This is applicable to employees who were on the payroll on 23 September 2020 (the day before the Job Support Scheme announcement) and were made redundant or stopped working after that date. This provision is part of the extended Coronavirus Job Retention Scheme or furlough scheme, where the government pays 80% of furloughed workers' wages for the hours they do not work, up to a cap of £2,500 per month. Employers need to pay the employer National Insurance Contributions (NICs) and pension contributions.

Employers can re-employ employees who were made redundant and furlough them, provided they were on the payroll on 23 September 2020. This also applies to anyone engaged on a fixed-term contract on that date that expired afterward, provided that the other eligibility criteria are met. Employers can also claim for employees who are shielding in line with public health guidance or need to stay at home with someone who is shielding. It is important to note that employers are not obligated to re-employ employees made redundant after 23 September 2020.

The procedure an employer follows to decide which employees to furlough may depend on its current financial situation. If an employer needs to urgently furlough employees or make them redundant to continue trading, a limited selection procedure carried out on an urgent basis is likely to be acceptable. On the other hand, if an employer does not have immediate financial concerns, it is more reasonable to follow a more comprehensive procedure. Employers could initially ask for volunteers, but in some cases, they may receive more volunteers than they wish to furlough. Employers should discuss proposals with staff and make changes to the employment contract by agreement. It is essential to confirm furlough leave to the employee in writing and ensure that furloughed employees do not carry out any further work for the employer.

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