Business leaders fear that thousands of workers will be warned that they could be laid off Monday unless the government’s vacation program is quickly expanded.
Large companies should have started to consult on massive layoffs under rules that require them to start the process a month and a half before laying off workers.
The government’s vacation plan was scheduled to end on May 31.
But Chancellor Rishi Sunak extended it by a month, which means it is open until the end of June – providing businesses with the certainty they need.
He said: “It is vital for people’s livelihoods that the UK economy starts up again when it is sure to do so, and I will continue to review the program so that it supports our recovery. “
Prior to the announcement of the extension, the Prime Minister’s spokesperson said: “We recognize that statutory layoffs require a consultation period of at least 45 days for companies with more than 100 employees and 30 days for those less than 100 employees.
“If the retention program is extended, all ongoing negotiations will be terminated and the leave period for these employees will continue.”
This comes after the Confederation of British Industry warned that companies could be forced into a situation where they would have to fire people permanently if the program was not suspended.
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He said if bosses were to comply with the law regarding the minimum 45-day consultation period required for layoffs for companies with more than 100 employees, they would have to start these procedures on Saturday.
The government initially said his vacation plan would last three months until June 1.
The plan pays 80% of an employee’s monthly salary up to a maximum of £ 2,500.
Earlier this week, CBI Executive Director Carolyn Fairbairn told the BBC Today program: “What we are saying to government is that businesses must be able to plan.
“These are massive day-to-day decisions that affect people’s lives and livelihoods, and having the clarity of a 45-day notice period for businesses is absolutely vital.”