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Retention plan good in principle but........

Can they pull of a miracle and have this operational in time for employees

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The majority of employers don't want to make their employees redundant and the furlough plan is good in principle  but the time frame may destroy that possibility for many. If the employees are paid in March and then all furloughed in April and the 25th April payroll comes round again and the employer is crying out for the refund from government so they can pay employees then what do they do?
Also, pension contributions and PAYE will continue to be paid or probably not draining cash flow further without any reimbursed money.

Many of the other support package schemes are in total melt down, some one in queue yesterday evening behind 1,052 others whilst waiting the full day on the phone for assistance. 

I'm afraid it'll just leave employers with no option but to make more staff redundant or just make up monthly payslips and don't pay the employee anything until they receive the reimbursed money first which could be two to three months down the line. I'm sure the employee will be happy waiting on the pay cheque arriving because the portal is still in construction. "Computer says NO"

I hope I'm wrong and we're operational by next week.

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paddle steamer
By DJKL
25th Mar 2020 13:42

If a business does not have liquidity/resources to cover say one/two month's wages it was possibly a poorly managed business in the first place.

I remember reading in my youth that 50% of business entities fold not because the business itself is poor but because they have very poor cash management, to me the management of liquidity in any business is more important than the pursuit of growth- sufficient quick assets, appropriate debt based on what is being funded are business finance 101 edicts in virtually all business finance textbooks.

Those that strapped possibly right now need to be looking at the government supported loan scheme re their short term needs ,but whether that can be sorted by say 25th April looks debatable.

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By razertoo
25th Mar 2020 14:14

DJKL wrote:

If a business does not have liquidity/resources to cover say one/two month's wages it was possibly a poorly managed business in the first place.

I remember reading in my youth that 50% of business entities fold not because the business itself is poor but because they have very poor cash management, to me the management of liquidity in any business is more important than the pursuit of growth- sufficient quick assets, appropriate debt based on what is being funded are business finance 101 edicts in virtually all business finance textbooks.

Those that strapped possibly right now need to be looking at the government supported loan scheme re their short term needs ,but whether that can be sorted by say 25th April looks debatable.

I am sure that all those businesses who are in that boat will genuinely acknowledge your disdain of their business acumen and cash flow management and thank you for your sympathy given heartfeltly from your ivory tower.

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By ireallyshouldknowthisbut
25th Mar 2020 13:50

I am still confused as to how (unless your employment contract allows it, ie they are on a zero hours contract) you furlough staff without recourse to their statutory notice periods. For most staff this would be a month or more?

In terms of grants being issued, end of April would be optimistic.

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By Steve Holloway
25th Mar 2020 14:04

Because the alternative is they get laid off!

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By bernard michael
25th Mar 2020 14:18

In 2020 miracles do not happen. All the schemes appear to be aimed @ "the end of April", which will become May etc
Neither HMRC nor local authorities have the mindset easily to pay money out - new systems on not

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By Marky
25th Mar 2020 14:23

Agree, a well established business with decent reserves and cash in the bank can ride out the storm but the new start with no real history, low reserves and limited money in the bank that might be a bit more difficult without quick support. If it's badly organised, staff deployment slow from supporting government departments, high volume of absence or isolation then I can imagine it's a scary time for business and the government departments trying to implement massive change in days.

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By Marky
25th Mar 2020 14:23

Agree, a well established business with decent reserves and cash in the bank can ride out the storm but the new start with no real history, low reserves and limited money in the bank that might be a bit more difficult without quick support. If it's badly organised, staff deployment slow from supporting government departments, high volume of absence or isolation then I can imagine it's a scary time for business and the government departments trying to implement massive change in days.

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