Redundancies should always be a last resort for any business and regardless of the current COVID-19 crisis. The Government introduced the Coronavirus Job Retention Scheme so they can help businesses to prevent redundancies for as long as possible, not to avoid them totally.
Employers are encouraged to look at other options first: using accrued annual leave, unpaid leave, short-time working, working more flexibly or even lay-offs.
There is an understanding that if a business is in financial difficulty (even with Government grants and loans), they should avoid getting themselves into debt by feeling obligated to continue to trade or pay for outgoings when the income is no longer there.
In this current crisis, redundancies are permitted as they would be if there wasn’t a crisis. But employers should exercise caution when making this decision. They should have a clearly defined business plan, use a fair selection criteria and carry out consultations meaningfully.
Employees that are on Furlough Leave are on a leave of absence, as if they were on annual leave from work, so regardless of whether they are in attendance in work, does not prevent you from considering their role for redundancy.