Furlough Leave & 80% Wages

MDav66

I’m a little confused as to what I will get paid as I’ve just started Furlough Leave! I work in Car Sales for a Major Employer and get paid a small basic wage (below NMW) with the rest made up of commission each month through Car Sales retrospectively. Part of the government’s announcement explains that commission is not included within the 80% calculation whilst it goes on to discuss employees on a varied monthly wage, in this case an average income can be taken in to consideration. Does anyone know what I can expect to get paid and which calculation my employer should be using? 

Jeremy535897

Unfortunately it appears that you have to exclude your commission before the calculation. If the rest of the pay varies, the variable pay guidance applies to that amount. Your employer should pay you according to your contract of employment, but if he furloughs you he will probably write you a letter changing your terms of employment so that you only receive 80% of your basic salary. You don't have to agree to the revised terms, but if you don't your employer will probably make you redundant.

7Phil

I don't know 100% and I don't think many people do yet.
The 80% grant is automatically calculated on earnings, excluding commission and bonuses.
However, if you have variable earnings that are consistently above your base wage then there are ways to calculate that under the variable calculation. Such options are a track record of yearly earnings divided by 12; or if your earnings are seasonal then at the same pay of this month last year. Rules TBC.

It will probably depend on whether you have been employed for over a year as to whether your employer can argue your true earnings.

Good luck, and hopefully you can use this scheme to keep your job. I'm sure you will be passed on whatever your employer can argue for you, and on your furlough agreement with them.
I can't comment on whether you fall below NMW, in which case I hope the scheme will use that as a floor calculation.

Retireby40

As I said in a previous post. Your only as good as your last month in sales and commission based jobs.

Even if you have sold 10 cars a month for 20 years nothing guarantees what you will get next month.

You will have to talk to your employer and see what they say. One of the downsides of working for a very little guaranteed income.

7Phil

Retireby40 said:

As I said in a previous post. Your only as good as your last month in sales and commission based jobs.

Even if you have sold 10 cars a month for 20 years nothing guarantees what you will get next month.

You will have to talk to your employer and see what they say. One of the downsides of working for a very little guaranteed income.

I don't think your advice is correct.
I understand your point that commission workers are subject to market volatility but I think the spirit of the scheme does extend to those with variable income at a proven level. Early indications suggest this is correct.
If someone was working 20 years with an average earnings of £X then the employer will be able to prove that and claim 80% of £X under this scheme. I may be wrong but have been hearing otherwise.

Retireby40

Why are so many under the illusion that they will only receive 80% of their basic wage then? 

Redundancyissues

I have the exact same issue as you. My employer seems to think they’ll base it as an average on my last 3 months earnings but I’m basing it on 80% of my basic earnings which is going to be between 30-50% percent of my normal pay. Really annoying considering I’ve paid the same amount of tax as someone who earned the same as a salaries pay. This commission has been earned consistently over the last 10 years. 

SamKG

I quit my job on March 2 to start my own business. However I obviously didn’t have a chance to get it off the ground. Can I get furloughed by old job? I was on the payroll Feb 28 and had worked there for 4 years. Information gratefully received   Thank you 

Hermann

Commission is specifically detailed as excluded from the calculation, it won't be included unless the guidance is changed.

MDav66

SamKG said:

I quit my job on March 2 to start my own business. However I obviously didn’t have a chance to get it off the ground. Can I get furloughed by old job? I was on the payroll Feb 28 and had worked there for 4 years. Information gratefully received   Thank you 

It's worth speaking to your old employer as they can Furlough you under the scheme (you'll have to check the cut off dates though), unfortunately they don't have too, depends how you left and what relationship you had!!

MDav66

Hermann said:

Commission is specifically detailed as excluded from the calculation, it won't be included unless the guidance is changed.

Hermann said:

Commission is specifically detailed as excluded from the calculation, it won't be included unless the guidance is changed.

Unfortunately the guidance is a bit vague and I believe the exclusion of 'commission' is more to do with possibly quarterly/yearly commissions that some of the big 'Bankers' earn, not sure the government would step up and pay for that! However, if a person whose monthly pay is made up of commission based sales, has a history of regular income on that bases which forms part of they're 'must do' in they're contract of employment or they would be fired surely this has to be taken in to consideration, alternatively I would be better of (not) on universal credit!!