Variable pay - Shift work?

domjon1

Hi, I've seen a few similar threads about variable pay and the furlough scheme but nothing that directly answers my question. 

I work 4 on 4 off 12 hour shifts. 
My pay includes a shift allowance paid for each shift worked, and an enhanced hourly rate for any shift that falls on a weekend. 

The company haa furloughed us and says it intends paying us 80% of 39 hours x basic hourly rate.

Clearly this amounts to significantly less than 80% of my "usual" wage.

The guidance looks clear to me that an average of the last 12 months wage should be used... The shift allowance and weekend premium are not 'bonus or commission', they're an integral part of the wage structure. 

The company so far refuses to budge on the matter. 

Anyone in a similar position or can clarify? 

Jeremy535897

The calculation employers are told to use in cases of variable pay are as follows:

"Employees whose pay varies

If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

• the same month’s earning from the previous year
• average monthly earnings from the 2019-20 tax year

If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.

If the employee only started in February 2020, use a pro-rata for their earnings so far to claim."

domjon1

Jeremy535897 said:

The calculation employers are told to use in cases of variable pay are as follows:

"Employees whose pay varies

If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

• the same month’s earning from the previous year
• average monthly earnings from the 2019-20 tax year

If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.

If the employee only started in February 2020, use a pro-rata for their earnings so far to claim."

Yes that's what we've highlighted to the company, would seem black and white no?

And yet, they resist. 

gary83

I’d agree with the HR Department, you get a basic wage per hour with a bonus element if you happen to be scheduled for a weekend. How’s the wage construct written in your contract?

Jeremy535897

Guidance to employees:
"If you are concerned that your employer is not paying you what you are entitled to then you should raise this with your employer in the first instance, then with Acas (Advisory, Conciliation and Arbitration Service)."

domjon1

gary83 said:

I’d agree with the HR Department, you get a basic wage per hour with a bonus element if you happen to be scheduled for a weekend. How’s the wage construct written in your contract?

The shift allowance and weekend rates are included in the contract. 

My issue is, the chancellor in his wisdom has decided what's needed to keep the economy on life support is people to receive 80% of their "usual wage".

There's employees there who've been on that pay structure for 40 years, all of a sudden their "usual" wage is drastically cut by removing base elements of it?

They clearly are not going to receive 80% of their usual wage. So the company takes the govt bailout to retain their staff, but the staff end up on nearer 50% of their usual income. 

gary83

I know they’re included in the contract, but how is it worded in the contract?

domjon1

gary83 said:

I know they’re included in the contract, but how is it worded in the contract?

I don't have a copy to hand tbh. What are the ramifications of any wording?
Ie what would you be looking for that could swing the decision either way? 

Hermann

domjon1 said:

gary83 said:

I’d agree with the HR Department, you get a basic wage per hour with a bonus element if you happen to be scheduled for a weekend. How’s the wage construct written in your contract?

The shift allowance and weekend rates are included in the contract. 

My issue is, the chancellor in his wisdom has decided what's needed to keep the economy on life support is people to receive 80% of their "usual wage".

There's employees there who've been on that pay structure for 40 years, all of a sudden their "usual" wage is drastically cut by removing base elements of it?

They clearly are not going to receive 80% of their usual wage. So the company takes the govt bailout to retain their staff, but the staff end up on nearer 50% of their usual income. 

The company will only receive what they pay employees on the PAYE during furlough, I'm not sure what the company gains by reducing the pay during furlough as that is paid by HMRC, up to the maximums of course.

gary83

domjon1 said:

gary83 said:

I know they’re included in the contract, but how is it worded in the contract?

I don't have a copy to hand tbh. What are the ramifications of any wording?
Ie what would you be looking for that could swing the decision either way? 

The current guidance says “Bonuses, commissions and fees are not included as part of your monthly earnings.” (This is an issue that’s effecting a lot of people, for instance sales staff where the majority of their wages is compromised of commission) How your contract is worded will have an outcome of whether or not your weekend extra pay would be considered a bonus, there is no legal requirement to get paid extra for working at the weekend if your contract says something along the lines of you are contracted for x amount of hours for which you will be paid y In addition any hours worked at the weekend will attract an extra payment of z it’d be quite hard to argue that this wasn’t a bonus.

do you have a recent payslip you could look at? How’s it recorded on there?

domjon1

Hermann said:

domjon1 said:

gary83 said:

I’d agree with the HR Department, you get a basic wage per hour with a bonus element if you happen to be scheduled for a weekend. How’s the wage construct written in your contract?

The shift allowance and weekend rates are included in the contract. 

My issue is, the chancellor in his wisdom has decided what's needed to keep the economy on life support is people to receive 80% of their "usual wage".

There's employees there who've been on that pay structure for 40 years, all of a sudden their "usual" wage is drastically cut by removing base elements of it?

They clearly are not going to receive 80% of their usual wage. So the company takes the govt bailout to retain their staff, but the staff end up on nearer 50% of their usual income. 

The company will only receive what they pay employees on the PAYE during furlough, I'm not sure what the company gains by reducing the pay during furlough as that is paid by HMRC, up to the maximums of course.

Quite, which is why its so frustrating tbh. There is no cash flow issue to complicate things either. 

I can only assume they are erring on the side of caution if they don't believe the guidance is watertight.