Furlough pay is less than 80% of my wages and I'll struggle

andypat057

My company has informed me that they are going to furlough me from the 1st of April and have stated that they will be paying the government grant going forward.  My issue is that the £2,500 government grant is only 62.5% of my wages that I recieve under my contract. Do they have any obligation to make it up to either 80 or 100% I guess not but what are my rights? They are a multi billion pound company so I would have thought they would have done more for their staff during this time.
Also if my employer agrees, am I able to take a temporary job with another company during this period? The reason I ask is because i would like to still work and do something and also it would help make up the loss in my income. 
They haven't been clear so far on what is happening, nor have i received a letter or email stating any details about it yet.  I'm just tring to be proactive and get ahead of the curve.

gary83

They have no obligation to top up the government grant, or even apply for that grant for you.

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme#while-youre-on-furlough

Illusionary

Unless there's a specific provision in your contract allowing your employer to put you on furlough (highly unlikely), you'll have to agree to the necessary contractual change, including the pay that you'll receive. You can refuse, but this may mean that the only alternative is redundancy.

You can't do any work for your existing employer while on furlough but there's nothing in the current guidance saying that you can't take on alternative work. While it wouldn't be a source of income, if you would still like to be doing constructive work, perhaps consider the NHS volunteer scheme?

neilmcl

I can't believe that someone who is going to get £2500 per month for sitting at home for a short period (a few months) is complaining they're going to struggle. Try thinking of those who actually are finding it very difficult at the moment.

LilElvis

The chances are that your highest outgoing is the rent or mortgage - if you are a homeowner then you may well be able to apply to your mortgage lender for a payment holiday.

7Phil

I know it seems hard to sympathise in this circumstance but people with higher incomes aren't automatically cash-rich.

OP: There are further catches you need to prepare for - the £2,500 cap includes your full salary package. I'm not sure if you have factored that in to your calculation of 62.5% but if not then you will be looking at a further drop in what your company can expect to pay you under furlough. What you are entitled to depends on the furlough conditions as per your work contract (which may still need to be negotiated). It's totally up to the employer's discretion unless you have some power to negotiate with them. And they may top you up further (I know mine would which is similarly a multi-billion pound/dollar organisation) as the grant is something that the business receives to cover their costs for you.

You can take other employment with your furlough time, as you say, as long as they agree - just keep them informed and on side. Your additional employment cannot be in any way connected to your current employer, Eg: you could not be furloughed and then work for a sister company doing the same work. That would be fraudulent.

discat11

neilmcl said:

I can't believe that someone who is going to get £2500 per month for sitting at home for a short period (a few months) is complaining they're going to struggle. Try thinking of those who actually are finding it very difficult at the moment.

That's understandable, and to be fair the cap is 50% of my normal income so I would be in the same boat if furloughed. The main issue is that most people I know have outgoings which match their income- i.e. could he service his mortgage, debt/loan repayment or normal outgoings on such a reduction in income? I know I couldn't.

andypat057

Illusionary said:

Unless there's a specific provision in your contract allowing your employer to put you on furlough (highly unlikely), you'll have to agree to the necessary contractual change, including the pay that you'll receive. You can refuse, but this may mean that the only alternative is redundancy.

You can't do any work for your existing employer while on furlough but there's nothing in the current guidance saying that you can't take on alternative work. While it wouldn't be a source of income, if you would still like to be doing constructive work, perhaps consider the NHS volunteer scheme?

I've already filled in the online form for that and I'm waiting to hear back but thank you for the advice

andypat057

discat11 said:

neilmcl said:

I can't believe that someone who is going to get £2500 per month for sitting at home for a short period (a few months) is complaining they're going to struggle. Try thinking of those who actually are finding it very difficult at the moment.

That's understandable, and to be fair the cap is 50% of my normal income so I would be in the same boat if furloughed. The main issue is that most people I know have outgoings which match their income- i.e. could he service his mortgage, debt/loan repayment or normal outgoings on such a reduction in income? I know I couldn't.

I wouldn't call a few months a short period and I understand everyone is in a different/difficult situation during this time. I am merely asking questions around a severe reduction in income and what I can do during the current climate, I know that I will still be taxed on my furlough payment and that won't leave me with much money to pay bills, loans etc. 

If I can take on other temporary work that that will help ease the financial stress that i'll be under. I know people are worse off than myself in the current situation and in better times I have always gone out of my way to help those less fortunate. I only posted on here for answers and this is far from a moan

Hermann

There are sectors desperate for workers to keep up essential services, if you can fulfill any of those positions whilst unable to to undertake your normal work you are surely benefiting society. Requires a willing furlough employer though.

Of course if you can cover your basic costs without taking a second job but you take a second job anyway and that deprives some one else from working to meet their basic needs thats not so good! Its a moral maze!

discat11

andypat057 said:

discat11 said:

neilmcl said:

I can't believe that someone who is going to get £2500 per month for sitting at home for a short period (a few months) is complaining they're going to struggle. Try thinking of those who actually are finding it very difficult at the moment.

That's understandable, and to be fair the cap is 50% of my normal income so I would be in the same boat if furloughed. The main issue is that most people I know have outgoings which match their income- i.e. could he service his mortgage, debt/loan repayment or normal outgoings on such a reduction in income? I know I couldn't.

I wouldn't call a few months a short period and I understand everyone is in a different/difficult situation during this time. I am merely asking questions around a severe reduction in income and what I can do during the current climate, I know that I will still be taxed on my furlough payment and that won't leave me with much money to pay bills, loans etc. 

If I can take on other temporary work that that will help ease the financial stress that i'll be under. I know people are worse off than myself in the current situation and in better times I have always gone out of my way to help those less fortunate. I only posted on here for answers and this is far from a moan

and I agreed, absolutely. I am lucky that, at present, my employer is allowing all staff to work from home and paying my full salary.
Unfortunately, part of my job (it could be argued 40% or more) is supposed to be out visiting/meeting clients/potential clients and clearly that can't be done at present so how long they will stomach this lord knows, I do hope they don't look at furloughing me as I think I'd rather be made redundant frankly (especially as my contract gives me a large redundancy payment).
Good luck with the furlough or whatever you decide to do.