Furlough

phil241

Hi
I have been placed on furlough by my company I work anywhere between 40 to 60 hours per week and my pay rate varies from x1, x1.3, x1.7 and x2. i have been with them for about 7 years. they are saying that I should only get 80% of basic wage but gov website says 80% of average if pay varies which mine does. can anyone shed some light on this for me please as it is very confusing and I don't know who is right

many thanks

phill

Jeremy535897

I would have thought your pay is variable pay. Guidance says:
"Employees whose pay varies

If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:

• the same month’s earning from the previous year
• average monthly earnings from the 2019-20 tax year

If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.

If the employee only started in February 2020, use a pro-rata for their earnings so far to claim.

Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim."

unholyangel

I commented on a similar thread that as of yet, no one can say for certain. Not until the government themselves actually decide the finer points of their fag packet promises. 

But personally, going on what they have said so far...I'm inclined to believe they meant variable pay as in zero hour workers where the contract does not set a fixed minimum amount of hours/money that must be provided by each party. Rather than where pay varies due to overtime.

sharpe106

As they do not include bonus, commission etc I do not see how they can include overtime. Why does your pay rate vary? 

Jeremy535897

I don't think we can be certain. All I would say is that a contract fro 30 hours with an opportunity to work more hours seems the same situation as a zero hour contract with an opportunity to work some hours. The only difference is the starting point, and we know from the guidance that zero hours contracts qualify.

Jeremy535897

The problem with the analysis above is that it sits badly with the exclusion of commission. I have said I believe that one reason for excluding commission might be that if you are furloughed, you can't earn commission because you don't do the activity that generates it. Therefore your employer would only pay you the basic wage under your contract if you weren't doing any work. The problem with that is that the same argument applies to a zero hour contract. If you don't work, you are entitled to no pay. The Government legislated for that situation in the employees' favour. The overtime question might have been answered in employees' favour, but there is doubt. The employees on commission are stuck. The nuanced difference between zero hours contract employees and commission rewarded employees is that the first have to work hours to get paid, and the second have to work better to get paid more.

phil241

Hi
thanks for replies, my pay can vary on a basic 40 hour week depending on what time of day I start or finish.
if I start at 4:30 am that pay is different than if I start at 8am or I can do nights and that is night rate and these can alter week to week

sharpe106

They have not mentioned anything about shift premiums yet, so I assume they will clarify that at some point. Although in my view it is a bit unfair to include that and not bonus, commissions. If it was me I would not be planning on getting it and if I did it would be a bonus. 

phil241

I can plan for 80% of basic it would just mean altering a few payments made. I just cant understand what "if your pay varies " means