Furlough does it include overtime?

khickey88

So I'm contacted to 40 hours but in the 10 year I've worked at the company I don't think I've ever done less than 45. So anyway the past year or so I've been averaging about 50 hours a week. If I'm out on furlough will I get 80% of my basic 40hours or will I get a average of my pay I received over the last year? 

jonnylfc

Interested in reply’s as I’m in the same situation contracted to 37.5hrs per week but I have never worked less than 56hrs in fact most weeks I do 60hrs my boss says he’s furloughed me on basic hrs (37.5).But as I understand it the gov uk guidelines states regular/usual monthly pay so I think it should be an average including overtime is this correct ? can someone clarify this please ??.
Many Thanks.

centurion_36

Im also in the same boat. The guidelines say the furlough is based on the wage you earned in the same month last year or on your annual earnings. I have not done a flat 38 hrs for a long time

Benjita1

Same here, Im salaried and worked on average 40 hours paid overtime per month. My employer has decicded to pay staff 80% of basic wage. HMRC said it should be included in the calculation as it is part of your "usual earnings". Good luck!

Galloglass

As normal employment law has not been replaced, you do what you would do if there was no crisis. You raise the issue through the normal company grievance procedures. Chat to ACAS about how to do this. See below

burtonr0

Yes I'm the same overtime included would account for the 20% that I'd lose.

Jeremy535897

Martin's advice on this site is that it does.

khickey88

Thing is my company have stopped all overtime so if it is 80% of my earnings form last year then i would be taking home the same pay while on furlough as I would be for coming into work fo 40 hours a week. 

markrooney

Has anyone had any luck with there employers for overtime to be included? After challenging them on it?

Jeremy535897

You could make the point that if employers pay too much, they will nave to pay any extra. But if they pay too little to an employee (80% of reference salary), they can't claim anything for that employee. To avoid such an outcome, they would have to demonstrate that their calculation, although wrong, was a reasonable choice. See guidance:

"The way you should work out 80% of your employee’s usual wages is different depending on the way they’re paid. You must check what you can include as wages first.

Choose the calculation you think best fits the way your employee is paid. For example, if you pay your employee a regular salary, use the calculation for fixed pay amounts. HMRC will not decline or seek repayment of any grant based solely on the particular choice of pay calculation, as long as a reasonable choice of approach is made.

You must pay the full amount of the grant to your employee."

Gottasavemoneysomehow

markrooney said:

Has anyone had any luck with there employers for overtime to be included? After challenging them on it?

No I can't get anywhere and the bigger problem is that the company is dormant so there's no real way to contact them effectively plus I'm worried that if they pay me too little and therefore claim too little from the government then there will be no way to correct this later as it says a company can only claim once.