Some of the biggest commercial real estate agencies plan to pay back money they received from the government when furloughing employees during the depths of the coronavirus crisis, in a sign that the worst may be past for some of their business lines.
JLL this week confirmed that it will pay back money received as part of the government’s Coronavirus Job Retention Scheme, under which companies can claim 80% of furloughed employees’ wages up to a limit of £2,500 a month. JLL is also reimbursing staff who took voluntary pay cuts during the past year.
The agency followed CBRE, which earlier this month confirmed that it will return grants used to furlough staff in its UK advisory services business.
Savills paid back its furlough payments last year, and Knight Frank said in November that it will also return money. Knight Frank group chairman Alistair Elliott said at the time: “With markets stalled and our offices closed, [furloughing staff] was the right decision for the time. Now as we pass the half-year point, income year to date is better than expected and, consequently, we have engaged with HMRC to establish the mechanisms upon which we will return these sums.”
However, with various business lines facing different challenges given the ongoing pandemic, other agencies including Avison Young and Colliers International have yet to decide whether they are able to return money.
At Avison Young, Jason Sibthorpe, principal and UK president, said: “Our priority over the last year has been to protect and retain as many jobs as possible. Our staff have demonstrated great fortitude, and we are incredibly thankful for their support and understanding towards the measures we have taken to protect jobs and ensure we are well-positioned as we emerge from the pandemic. As we continue to navigate the ups and downs of the pandemic, we are optimistic about the future and will continue to evaluate decisions that are in the best interests of our people.”
Tony Horrell, Colliers’ chief executive for the UK and Ireland, said: “Colliers took part in the government’s job retention scheme in order to retain and safeguard jobs. In doing so we have avoided wide-scale redundancies.”
A spokesman for HMRC told EG that companies are under no obligation to repay furlough grants, but added: “HMRC welcomes those employers who have voluntarily returned CJRS grants to HMRC because they no longer need the grant, or have realised they’ve made errors and followed our guidance on putting things right.”
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