Furlough pay

watso524watso524 Forumite
2 Posts
First Post
MoneySaving Newbie
My employer has put me on furlough due to the salon being closed. I have been told that my pay will be on my basic which is minimum wage I haven’t earned this for over 10 years my pay structure is percentage,  the variable pay on government website says there can be an average done over 12 months for people who’s pay varies. Is this the case with me as my bills and outgoings have been worked out on my salary earned not on my basic and I am struggling to get clarity on this. Also whilst on furlough and I’m asked to attend meetings and training online is this allowed ? 

Replies

  • 7Phil7Phil Forumite
    489 Posts
    100 Posts First Anniversary Name Dropper
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    1: You may be able to benefit from the variable calculation if you have a track record of earnings. It seems bonuses and commission are not included in that so if your variable pay is based on those then you are probably only going to expect 80% of base. Your employer should set that out for you when they vary your contract with furlough terms. If they top you up a bit over what they can claim from HMRC then that's up to them.

    2: Training yes, your employer is allowed to ask you to complete training while on furlough. Meetings - less clear. The rules state you cannot work or make money for your employer. If the meetings are regular status checks to make sure everyone is still alive and well then it seems reasonable.
    If you are being tasked with work, need to produce outputs, need to sell products etc then that would fall foul of the guidelines.
    I'd get some more clear advice though on the meetings aspect but at a minimum if you were just checking in it seems like common sense.
  • 7Phil7Phil Forumite
    489 Posts
    100 Posts First Anniversary Name Dropper
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    I should add the meetings should be phone meetings from home. Coming in to work to have a chat can't be argued as being essential especially while on furlough.
  • watso524watso524 Forumite
    2 Posts
    First Post
    MoneySaving Newbie
    I know it states bonus and commission is not included however I have consistently earned over double of the basic for 10 years so I don’t really understand why it would be on the basic, I thought this would be why an average would be taken from the previous 12 months, or even over last 3 years if needed 
  • 7Phil7Phil Forumite
    489 Posts
    100 Posts First Anniversary Name Dropper
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    I am with you in that if the nature of your employment means that you have a track record of earnings over a certain amount then I feel the scheme should cover you for that expected earnings to be fair to you and equal to a salary employee.

    However, the rules might not go that way. To a certain extent I can understand if the scheme does not. If your income fluctuates based on footfall in the salon then you will be affected by countless other situations and need to respect that.

    The government may clarify the situation and for your sake I hope they do.
    If not, then I think we need to accept that is life. The government has ingeniously geared the scheme towards giving an incentive to people to seek out other ways to adapt at this time to bridge the gap in their income by fulfilling other needs in their local community.
    It's not necessarily a 100% fair system but if they paid us all our normal income to hibernate for some months then the scheme will have negative returns and fail society.
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