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Furlough but basic doesnt meet minimum wage without commission

LiGhTfasT
LiGhTfasT Posts: 168 Forumite
Part of the Furniture 100 Posts
edited 30 March 2020 at 11:24PM in Coronavirus Board
I have a 13k basic salary working full time that is topped up with commission that normal well exceeds minimum wage. The current statement says the furlough is on basic only so I stand to lose a large amount of my wage around 60% due to no commission allowed. The document from the company also states that you are not allowed to work for any other employer.

Surely my wage now being below minimum wage and before the 80% furlough is not legal?

Comments

  • Retireby40
    Retireby40 Posts: 772 Forumite
    Fourth Anniversary 500 Posts Name Dropper
    edited 30 March 2020 at 11:33PM
    The problem is with commission it can vary from one month to the next. So it would be hard for the government to pay you out on something that isnt guaranteed. 

    So the big problem isnt that what the government will give you doesnt meet minimum wage. Its that the basic your company doesnt meet minimum wage. 

    Even if you have an average of 50 sales a month for 5 years that isnt guaranteed next month. As the saying goes your only as good as your last month. That's the downfall for working for so little basic. Have never heard of a company that pays so little. In my next of the woods theres plenty of jobs with commission but they usually start minimum 19-20k. Probably the commission that can be earned is less but usually those that hit targets end up on about 27-28k. 
  • afis1904
    afis1904 Posts: 348 Forumite
    100 Posts First Anniversary Name Dropper
    Unfortunately the first half is legal as the 80% only applies to basic pay which can be below minimum wage if there's a guaranteed bonus taking it up to minimum wage.

    The not working for another employer sounds sketchy but it's not an uncommon clause in employment contracts so I would check if it's in there and if it's not, get advice.
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