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Pay reduction

hi my partner works in construction and his site is still open, only a handful of people on it. His employer has sent a letter asking them to take a 20% pay cut, and keep working, they have given no further details yet, but the lads on site are worried about what happens if they agree to this and then are furloughed, then the company would only pay 80% of the reduced wage instead of 80% of their normal pay. Can the company legally do this?  As in effect they would lose 40% of their pay.
Any advice would be appreciated

Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,745 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    36% actually, but I see your point. Employers are given this guidance on how to work ou what they will receive under the scheme:
    "For full time and part time salaried employees, the employee’s actual salary before tax, as of 28 February should be used to calculate the 80%. Fees, commission and bonuses should not be included."
    Therefore reductions now (well after 28 February) will not be relevant for people on a regular salary. Where pay varies there are additional guidelines.
  • Thank you I will pass this info on 
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