Daniel Zeichner MP has warned of a cliff edge for jobs as new figures released show that a whopping 11,700 Cambridge people had their jobs furloughed through the Job Retention Scheme up to 31 May. This is the equivalent to around 14% of the city’s working population.
Furloughing is set to continue into the Autumn but employers will need to start paying national insurance and pension contributions, representing 5% of employment costs, from August 2020.
Mr Zeichner says he is getting an increasing number of calls and emails from constituents currently on furlough who are being made redundant ahead of the August deadline. Businesses can use the furlough scheme to pay the notice period of employees they make redundant.
Daniel Zeichner MP said: “With the shops reopening, the number of people on furlough is reducing but some people are finding that there isn’t a job for them to go back to. It is clear what the Job Retention Scheme was designed to do, but some companies are now using it to get rid of workers. I would urge constituents to make sure they are in a trade union. We also need answers from the government on how many jobs have been retained by the retention scheme. If the scheme doesn’t do what it says on the tin then we need urgent action to create new, decent jobs.”