Butlin’s ‘warns 1,000 jobs are at risk when furlough ends in October’
A THOUSAND jobs are at risk of being axed when the furlough scheme ends in October, reports the BBC.
Staff have been advised to take paid holiday if they have any left or unpaid leave if not, according to a document sent to employees seen by the .
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The holiday camp operator is currently running at half normal capacity and expecting businesses to drop significantly as winter approaches.
But Butlin's told The Sun that it is yet to make a decision about the future of those currently on the government's jobs retention scheme.
A spokesman said: "Our aim is to get all of our team back to work as soon as we can.
"We’re disappointed in the irresponsible nature of the BBC’s report about job losses at Butlin’s.
Can I be made redundant if I'm on furlough?
EVEN though furlough is designed to keep workers employed, unfortunately it doesn't protect you from being made redundant.
But it doesn't affect your redundancy pay rights if you are let go from your job amid the coronavirus crisis.
Your employer should still carry out a fair redundancy process.
You will be entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
If you're made redundant after your company has gone into administration you can claim redundancy pay .
"We are working closely with UK Hospitality and the government to understand the implications of these constantly changing national circumstances."
Butlin's employs 6,000 employees and is owned by Bourne Leisure Group which also operates Haven caravan parks and Warner Leisure Hotels.
In total, the group employs 15,000 members of staff.
Before the government announced the furlough scheme, the group warned that 10,000 jobs would be axed as a result of lockdown.
It has since benefited from hundreds of millions of pounds in government support through loans, furlough and deferred VAT and business rates.
In 2019, Bourne Leisure paid out over £60million to the three families that own the businesses, the Allen, Cook and Harris families.
Thousands of jobs are expected to be culled when the government support ends on October 31.
Currently, the state covers up to 70% of the wages of employees on the scheme with bosses contributing 10% of salaries, national insurance and pension contributions.
From October 1, employers will be required to stump up 20% of wages while the government will pick up the remaining 60%.
Trade Union bosses have warned that a "second wave" of redundancies is on the way if furlough isn't extended.
In the retail industry, some 43,000 jobs have been lost already after shops were forced to temporarily close during lockdown.
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The government has also launched a £2billion Kickstart scheme to get young people into work.
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Chancellor Rishi Sunak announced the scheme in his mini-Budget in the summer as part of efforts to help Britain bounce back from the coronavirus crisis.
Earlier this month, a delay left thousands of job hunters applying for the Kickstart scheme in limbo as employers were told to pull ads.