Furlough scheme update: what it means for retail

The retail industry’s campaign for the government to include provisions to bring back furloughed staff part-time in its updated job retention scheme has paid off.

While the details are limited, from July 1 employers can bring back employees who have been previously furloughed for a full three-week period on a part-time basis.

This is significant in that it gives retailers a lot more flexibility to reopen stores while executing the precarious balancing act between the government’s guidance and restrictions, the indeterminate level of customer demand and their own finances.

“This may be a lifeline to retailers that wish to test the water by implementing reduced opening times”

The details, which are currently expected on June 12, will be crucial. Retailers will need to act quickly to agree on arrangements with semi-furloughed employees and manage a number of new challenges.

The exact working patterns of returning staff can be agreed between the employer and the employee, and it seems that there will be no minimum or maximum requirement to continue to qualify for the scheme. This may be a lifeline to retailers that wish to test the water by implementing reduced opening times.

Retailers that intend to bring staff back part-time should review the agreements they currently have in place. These will state that staff are not permitted to carry out any work while on furlough, so retailers will need to reach new agreements with employees.

Incorporating this new arrangement into employee contracts is not strictly necessary, but it is best practice and strongly recommended. As a bare minimum, verbal agreements must be reached and recorded in writing.

“The intention is clear; we are in the process of returning to normal and retailers should be meeting staff costs”

The government has made it clear that the scheme cannot last forever. From August 1, some of the costs will revert back to employers – starting with national insurance and pension contributions, then 10% of pay from September and 20% by October. The scheme will then close.

The intention is clear; we are in the process of returning to normal and retailers should be meeting staff costs.

Reluctant returners

Some members of staff may be reluctant to return to work, particularly if they were previously shielding. While the rules on shielding have relaxed, employers still have a statutory duty to ensure the health and safety of their staff. A risk assessment will be needed in order to establish a safe system of work that is actively implemented.

If some members of staff refuse to return, retailers should consider whether they hold a genuine concern and, if so, consider allowing them to remain on furlough.

Employees who are disciplined or dismissed because of a genuine concern about safety are protected from detriment and dismissal – a ‘day one’ right with unlimited compensation.

Retailers should also remember that people who have underlying health conditions are likely to be disabled within the meaning of the Equality Act 2010.

“Members of staff who raise safety concerns may also be protected under whistleblowing legislation”

Failure to make reasonable adjustments or take such disabilities into account may leave them open to a discrimination claim. If businesses decide not to make adjustments for such employees, this should be carefully considered, discussed with workers and documented.

Members of staff who raise safety concerns may also be protected under whistleblowing legislation. Again, these are ‘day one’ rights with no limit on compensation.

If retailers do require those who are vulnerable to return to work, they should ensure that they are offered the safest jobs, enabling them to stay two metres away from others as much as possible.

It is not possible to zero-risk any working environment, but retailers who follow the government guidance and develop a safe system of work that is actively implemented will be well on their way to making their workplaces as safe as they possibly can be in the circumstances.