Pay calculation for furloughed employees?

[NotSmiling]

I work between 20 to 40 hours every week but am only contracted to 8 hours a week. Just been told by my employer that if i get*furloughed, i will only get paid 80% of my contracted hours and not 80% of my average hours for February. If thats the case then i will be on £55 a week.

Does anyone know how*furloughed pay will be calculated because this does not seem right to me?

[ULA]

As far as I am aware and I am trying to keep up with this as the mechanics of how the scheme will operate is announced but as yet it is not clear how "wages" will be calculated. Whether this will be based on basic pay only, or include other payments such as overtime, shift premiums or commission payments has not yet been determined. Also It is not clear how wages of employees with variable hours and pay, such as hourly paid employees, will be calculated. It is possible that this will be by means of an average over a number of weeks prior to being furloughed.

Sorry, but it is a case, at the moment, of waiting to see what further information is provided on the scheme. If I do find out anything further I will post back on this thread.

[NotSmiling]

If im contracted to 8 hours, does that mean anything over 8 hours is overtime? Ive never done just 8 hours since i started, they use that as the minimum guaranteed amount of hours i will get each week; but i also have to give up my 48 hour maximum per week, which means i could work over 48 hours some weeks.


Dont see how they can tell me its 80% of 8 hours when government hasnt decided yet, but thats what they telling everyone now.

[ULA]

The full details are still being worked through including the setting up of the portal by HMRC for employers to register their employees on furlough including details of their earnings.

I appreciate that this is a really anxious time for many people but I am sure that more details of how the scheme will be implemented, including what will be included as wages will come be announced in due course.

[NotSmiling]

Thanks for your time in answering. It now seems they have backtracked a little after yesterdays announcement. As of today we are closed and rest of this week will be treated as holidays and we will get paid as if we had completed this weeks rota. Will have to wait and see what happens after that. At least its taken a bit of the worry off for now.

[R0b]

Unless I'm mistaken, the point made by the government about 80% was a subsidy for employers not employees provided they were not laid off and put on leave of absence - employees should still be paid 100% of their wages and in accordance with their contract. Obviously for someone like you who works a mixture of hours on a weekly basis, that can be more difficult to work out and perhaps can be taken as an average over the last 12 months you have been working there or by some other methodology.

Anyway, like Ula said there's no official guidance as yet but at least you have some comfort for now.

Out of curiosity, what sector do you work in? is it a zero hours contract you are on?

[ULA]

Hi sorry just a point of clarification at the moment the guidance is that a firm can decide to fund the difference between the 80% and a person's salary but they do not have to.*


*

[R0b]

Ah yes, I have seen the guidance now.

Presumably a "furlouged worker" would require a change in employment status, particularly if current contract says you are an employee, full or part time etc. and subject to those employment terms would require consent of the employee too?

Nothing in the guidance I've found says you can't take up secondary work for a different employer and still get your 80% pay from the primary one?

Think there's still a few questions that need to be answered or clarified but its a starting point I guess.

[NotSmiling]

Quick update

Employer now calculating the pay as an average of last 8 weeks wages. It will be 80% of that which is good for all the employees. They also went further, they will add on another 10% if we agree not to work for anyone else while we are furloughed. Thats now 90% of our average wages we will receive. Believe me when I say its a weight of my shoulders. Hope other employers do the similar for their staff.

[ULA]

Thank you for coming back and updating us. Glad to hear your employer is trying to help by funding some of the gap over the 80% in these difficult times.

Stay well and safe