Start conversations with staff regarding potential deferring of salaries
There is a possibility the CJRS money may not be paid to employers by end April as originally planned. If this is the case businesses will need to think about their cash flow and how they are going to pay employees. If funds do not allow for employers to pay their employees in April without this grant there are certain steps they need to consider taking:
- If a furlough agreement has not already been signed, the ideal solution would be to include a clause in the agreement to allow the employer to defer the payment to the employee in this situation
- If a furlough agreement has already been signed, employers will need to agree with their employees to defer salaries until the money is available
- These are difficult conversations to have and employers need to ensure they follow strict guidelines on this
- If employees agree to the deferment of salary they should sign a letter agreeing to this
- If employees refuse the deferment of salary, employers need to consider their alternative options
Our HR team at TC are on board to guide you through this process. Contact us today to discuss the points raised in this post or any other concerns you have as a business owner, about your personal finances, or, as an employer now on 0330 088 7111.