Can Employer Change Contract during Furlough

During the COVID-19 pandemic, many employers have been forced to furlough or lay off their employees due to the economic impact of the virus. This has left many workers unsure about their employment status and the terms of their contracts. One question that has arisen is whether an employer can change the terms of an employee`s contract during a furlough.

The short answer is yes, an employer can change the terms of a contract during a furlough, but there are limits. Furloughing employees does not necessarily mean that the employment contract is terminated. Rather, the terms of the contract may be modified temporarily. This can happen if the employer needs to reduce hours, pay, or other benefits in order to stay afloat during a period of reduced revenue.

It is important to note that any changes to an employment contract must be made in accordance with employment law and the terms of the contract. Employers cannot make unilateral changes to an employee`s contract without first consulting with the employee and obtaining their agreement. This is true even during a furlough or other times of economic uncertainty.

Employers may also be subject to specific protections for furloughed employees, such as the Coronavirus Job Retention Scheme in the UK. This scheme allows employers to claim a portion of an employee`s salary up to a certain amount while they are furloughed. However, employers must follow strict guidelines to ensure that they are using this scheme appropriately and not exploiting their employees.

If an employer needs to make changes to an employee`s contract during a furlough, they should do so in cooperation with the employee. This may involve negotiating a temporary reduction in pay or hours, or changing other benefits such as holiday pay or sick leave. Employers should also be transparent about their reasons for making these changes and provide clear communication to their employees throughout the process.

In conclusion, while an employer can change the terms of an employee`s contract during a furlough, they must do so in accordance with employment law and the terms of the contract. Making unilateral changes without consulting the employee is not allowed. Employers should work collaboratively with their employees to find mutually acceptable solutions during this difficult time. By doing so, employers can maintain their workforce and ensure that they are in compliance with employment law.

This entry was posted on November 10, 2022, in Uncategorized. Bookmark the permalink.