Following catastrophic falls in economic output during quarter 2, the UK Chancellor of the Exchequer has, today, made a ground-breaking economic statement setting out the UK government’s second phase of its economic response, which includes a significant effort to “protect, support and retain jobs”.Given that largescale unemployment would be a key factor in creating long term scarring for the economy, a key emphasis has been on reducing the number of unemployed as we emerge from the Coronavirus Job Retention Scheme (“CJRS”) at the end of October 2020.

Set out below are the key points for employers:

• Job Retention Bonus. To incentivise employers to bring furloughed employees back to work, the government will pay employers a bonus of £1,000 per employee on condition that following the end of the CJRS, they remain employed by their employer until at least January 2021, earning a minimum of £520 per month.
• Kickstart Scheme. This scheme will provide new jobs to 16-24 year olds who are on Universal Credit.  The government will pay the national minimum wage of young people employed under this scheme for the first 6 months of their employment, subject to the job being a new one; salary being a national minimum wage or above and the role being for at least 25 hours per week.  There will be no cap on the number of places available under the scheme and participating employers will also receive £1,000 for administrative costs. It is estimated that this £2 billion scheme will see the creation
  

There is no change yet, but an expectation that there will soon be a UK lockdown exit plan. By 7 May 2020 we may have a better idea how and when the lockdown will fall away. But no promises are being made.

Along with the possible easing of restrictions, there is also the end of the UK government’s job retention scheme. Furloughing will become a thing of the past. As it stands, the date for that is the end of June, although there are suggestions that, like the lockdown, there will be a gradual rather than cliff edge assignment of furloughing to history.

For some businesses it will mean a focus on managing within the workplace issues such as social distancing, testing and tracing. The direction for these businesses will be a return to a resemblance of normal.

For others, the direction will be acting on the permanent damage to the business or the sector in which it operates, and that means redundancies.

For many it will be a combination of the two.

The UK job retention scheme, as the name suggests, was intended to keep employees in jobs rather than them being made redundant during lockdown. It can hardly be a surprise that its end means that employees’ status will need to be reconsidered. To some extent that will depend on the permanent damage. To some extent it will depend on the speed and scope with which the lockdown is lifted. We can hope that the lifting of the