Euro Projects Recruitment Business Leaders Zoom Call
For Manufacturing, Engineering, Technology, Transportation & Logistics Professionals
Summary of Key Points: 1st June 2020
- Furlough Update
- Helen Dyke – Irwin Mitchell - Changes to the Job Retention Scheme (JRS/furlough) were clarified on Friday including:
- The JRS will continue until the end of October 2020.
- For June 2020 and July 2020 employers still not required to contribute to the JRS grants. The government will continue to pay 80% of monthly salaries up to a maximum of £2,500 per employee each month.
- From July 2020 employers may bring employees back to work part-time. Employers would be required to pay for the days the employee works and the other days not worked would be covered by JRS.
- From August 2020 employers will be required to cover national insurance and employer pension contributions for the CJRS grants.
- From September 2020 the contribution will be split so that employers pay 10% and the JRS pays 70%.
- From October 2020 the contribution will be split so that employers pay 20% and the JRS pays 60%.
- The JRS will close to new entrants on 30 June 2020 and employers who wish to put new employees on the JRS will need to do so by 10 June 2020 to qualify as they require 3 weeks of furlough to be eligible.
- There is a possible risk of an unfair dismissal challenge (for staff with more than 2yrs employment), if you’re not using the all of the options available to the business (JRS) to protect jobs.
- Many businesses now concerned if they will be able to afford to top up the Governments support through the JRS, particularly those in hard hit sectors.
- 25% of company directors are saying they can’t afford these increased costs so there could be more redundancies
- Some big companies are looking at redundancies, e.g. Rolls Royce. With many large employers suggesting 20% of workforce is potentially under threat. August and September look like the pinch point.
- Big decisions are being made right now about whether to Furlough large numbers now in order to put cash into reserves ready for later. This might have significant impact; when the larger employers make this decision it will impact in the SME supply chain.
- Financial Support:
- David Tomlinson – HSBC – funding landscape – Bounce Back Loan (BBL): If you apply today the process is largely automated and it should take 3-4 to be turned around.
- CBIL is taking approximately four weeks, as it is dealing with larger amounts of money and consequently has a more detailed lending criteria
- Many HSBC customers have dealt with their immediate needs in terms of the support needed and are now talking about the more structured support they need, interest rates are at an all-time low.
- For those doing well it is a great time for companies to borrow and grow, particularly those businesses supplying medical and certain sectors of haulage.
- See last week’s summary for more detail on obtaining BBL/CBIL: https://www.europrojects.co.uk/blog/2020/05/business-leaders-zoom-call-25th-may-summary
- Track & Trace Effects on Business:
- Track and trace launched last week. Tested and 7 day isolation required if positive. Track and trace team will follow-up close contacts including (people you have spent 15mins or more with at less than 2m, or households where you have been closer than 1m face to face in the preceding days). It is seen as a ‘Civic Duty’ to self-isolate.
- For employers there is a question about whether there will be if there will be a formal notification for employers that a person has been contacted on Track on Trace or do we take it on trust?
- SSP will be available to employees on Track & Trace
- Employers concerned that Track and Trace could render large numbers of employees unable to work from home as unable to attend work due to Track & Trace system.
- Steve Brown to ask CBI to lobby UK Government for an immunity passport available from an antibody test, currently being offered to frontline NHS workers.
- Adapting Your Business:
- Ben Slater of Kesseler Kitchens – Manufacturer of high end fitted kitchens. “Our show-room sales route to market is currently closed, so we have pivoted to an online sales route, and pivoted to make bedroom furniture so we don’t tread on the toes of our existing business. This product enables us to sell within the constraints of lock down.”Cost to pivot - £6-7k, mainly the cost of setting up the website (animations, CGI), Used www.fiverr.com where average costs were £42/image compared to the £1,800 costs.
- David Bridgens of MGTS (Midland Group Training Services) – Apprenticeship Training Organisation. Moving training to the online platform, never done this before. Using zoom technology to take apprentices through their weekly course work.
- Whilst they can’t transfer practical welding online, they can teach thermodynamics / electrical engineering remotely.
- They have used furlough period to get people trained to use new technologies. “You need to remember that whatever great business ideas you come up with, you also need the right skill set in your business. Our staff had never delivered training online nor created online training, so we used the furlough period to get our staff trained on making training videos creating and uploading learning material and delivering training online.”
- If you haven’t already claimed your FREE copy, Euro Projects Recruitment is also delighted to bring you a new resource.
This practical guide to reviving your business in a post-Covid19 economy, brings together contributions from a range of business experts who have been involved in the Business Leaders Zoom calls.
To receive your free copy click here: https://www.europrojects.co.uk/covid19-business-revival-plan
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