The government's Coronavirus Job Retention Scheme is due
to end on 31 May 2020. It has provided employers with some
important breathing space and there is no question it has saved
jobs. But as the end of the scheme draws closer, it is important
for employers to start considering their furlough exit plans.
The furlough scheme may be extended by a further period or the
government could look at transitional measures. However, despite
the Confederation of British Industry pressing for an announcement
soon, given the time required for employers to undertake collective
consultation, we may not know for a few weeks yet.
Most employers have already taken the obvious steps to reduce
operating costs. In terms of staff costs, recruitment freezes are
already in place, discretionary benefits (e.g. bonuses) have been
cut back, contingent staff have been let go, and fixed-term
contracts have not been extended. This makes the prospect of
reabsorbing all payroll costs at the end of
