Furlough Leave & 80% Wages

Hermann

The guidance is wooly and unclear in some areas, in others there is room for discretion.

I'm afraid I don't see commission as one of those areas. 

Variable pay means variable pay not variable commission.

If your contract provides a basic salary that is your 'pay'. Does your basic salary vary month to month?

Hermann

Also bear in mind the PAYE system will be used to administer the scheme. I'd expect to see basic salary and commission as separate entries so there would seem to be no opportunity to exercise discretion on that element.

Hermann

The £2500 limit already protects the system from fat cat bankers so I doubt that is the reason for excluding commission.

BusinessOwner111

Given that Private Schools that operate as private companies are able to charge fees however furlough their staff during the Easter holidays and bring them back on the first day of term.  Does this mean that you can furlough / un-furlough your staff and bring them back as and when you need them?

gary83

MDav66 said:

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!!     

The government wouldn’t pay for any large bonus, commissions or annual awards a “big banker” would get because the amount is capped at £2500 a month, the guidance is not vague at all when it comes to bonuses, regardless of how much they are & whether you work in something like car sales, or are a big banker it says this;

Bonuses, commissions and fees are not included as part of your monthly earnings.

LoLoBush65

I understand that under this scheme Commission and bonuses are clearly specified as being excluded in the guidance. However, how do we stand with regard to regular overtime? 80% of basic income (for us) will be far, far lower than 80% of income including overtime but the employer has said it will be paying only 80% of basic income. We feel a bit uncomfortable arguing the case when we feel we should just be grateful to be getting anything at all and keeping our jobs, but at the same time if the Government is prepared to pay 80% including overtime, then this would help make the financial pressure far more manageable. I'm not suggesting the employer is deliberately trying to do anything underhand, just that overtime doesn't seem to be mentioned anywhere and this is probably why they have said basic pay only.

SamKG

MDav66 said:

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!!

I left on good terms. However They seem to think that I’m not eligible as I was not made redundant and didn’t have a contract to go to (as I was about the start my own business). Also they would have to pay out and wait for govt funding to come through ?

Jeremy535897

Yes, if they didn't make you redundant they can't rehire you and furlough you.

MDav66

I still believe under the nature of the scheme the government is trying to keep employees in work and cover up to 80%/£2500 max of they're regular earnings! There are many Sales People in the Car & Other Industries that don't get a very high basic wage, its more of a retainer to keep you on the books, some companies only pay commission! I'm hoping for some clarification around this issue and hope that employers can discuss this grey area with HMRC to find a way forward as detailed in the 'varied wages' part of the governments details. Like any Scheme put together quickly there will be holes, just hope common sense will prevail. My contract of employment is very detailed in my Sales Targets and the  procedures that will be put in place if I fail to achieve them, ultimately being dismissed from the company if I consistently miss my targets. Holiday pay is worked out on a kind of average earnings calculation so why should this be any different! We are in unprecedented times and we are all in it together so we're told, I've certainly paid the tax over my career so I could do with the support right now, otherwise I'd be better off being made redundant and claiming what I could on the welfare state, not what I or the government would want, I guess we'll just have to wait and see.