Salary or variable wage

mkoster

Hi
I am about to claim the furlough grant for one employee via my book keeper. I pay him £132 per day for 5 days a week on a calender monthly basis regardless of hours worked and without bonuses or overtime. My view is that he should be considered to be on a salary for the reasons outlined, but my book keeper states that because there are different working days each month he is on a variable wage. This makes quite a difference on the furlough calculation because he had a large pay rise last November. 
Opinions would be welcome. 
Thanks

Jeremy535897

The Treasury Directive defines a fixed rate employee as follows:
"7.6 A person is a fixed rate employee if-
(a) the person is an employee or treated as an employee for the purposes of CJRS by virtue of paragraph 13.3(a) (member of a limited liability partnership),
(b) the person is entitled under their contract to be paid an annual salary,
(c) the person is entitled under their contract to be paid that salary in respect of a number of hours in a year whether those hours are specified in or ascertained in accordance with their contract (“the basic hours”),
(d) the person is not entitled under their contract to a payment in respect of the basic hours other than an annual salary,
(e) the person is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week or month in equal weekly, multiple of weeks or monthly instalments (“the salary period”), and
(f) the basic hours worked in a salary period do not normally vary according to business, economic or agricultural seasonal considerations."
I think you are right.

mkoster

Thanks for the quick reply

calcotti

Jeremy535897 said:

The Treasury Directive defines a fixed rate employee as follows:
"7.6 A person is a fixed rate employee if-
(a) the person is an employee or treated as an employee for the purposes of CJRS by virtue of paragraph 13.3(a) (member of a limited liability partnership),
(b) the person is entitled under their contract to be paid an annual salary,
(c) the person is entitled under their contract to be paid that salary in respect of a number of hours in a year whether those hours are specified in or ascertained in accordance with their contract (“the basic hours”),
(d) the person is not entitled under their contract to a payment in respect of the basic hours other than an annual salary,
(e) the person is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week or month in equal weekly, multiple of weeks or monthly instalments (“the salary period”), and
(f) the basic hours worked in a salary period do not normally vary according to business, economic or agricultural seasonal considerations."
I think you are right.

Doesn’t reference in (e) to equal monthly instalments and regardless of hours actually worked mean that in this case the employee does not fit the description.

Jeremy535897

The only thing that doesn't fit the description is that he's paid £132 per day added up over the calendar month. If he was paid £660 a week he'd fit the description perfectly. I think he looks much more like a fixed rate employee than a variable pay employee.