Furlough calculation having just returned from Maternity leave

michaelahobson09

I returned from maternity leave on the 12th of February 2020 and was furloughed this march. My maternity began in early April 2019 and I was paid statutory maternity pay up until January 2020, when I then used the holiday I had accrued from that year.  I had an email from my place of work today, April 20th 2020, stating that my SMP will not be included in the Average pay I earned from the tax year 2019/2020, and that my average weekly earnings from that tax year, and what I’m entitled to is merely £18 a week. I’m on a zero hour contract, but still I don’t see how this can be liveable, especially looking after a baby. I have worked with the same company from nearly 5 years. Any advice on if this is the correct way of working out my furlough pay, or if I’m entitled to more would be greatly appreciated. Thank you.

calcotti

https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme

Employees returning from family-related statutory leave
Family-related statutory leave includes maternity leave, paternity leave, shared parental leave, adoption leave, parental bereavement leave and unpaid parental leave.
In line with other employees, claims for full or part time employees furloughed on return from family-related statutory leave should be calculated against their salary, before tax, not the pay they received whilst on family-related statutory leave. The same principles apply where the employee is returning from a period of unpaid statutory family-related leave.
Claims for those on variable pay, returning from statutory leave should be calculated using either the:

• same month’s earning from the previous year

• average monthly earnings for the 2019 to 2020 tax year

7Phil

Ok, this is a little tricky. Government guidance says that if you have been on maternity leave recently and you are moving onto furlough, your furlough pay should be based on your normal salary, not your SMP, Maternity Allowance or unpaid maternity leave.

By all rights your variable pay calculation should be based on your April 2019 pay - or your average monthly wage for the 2019-2020 tax year. Both of these calculations are going to be low due to the timing of your leave but I still need to point out whether they considered your April 2019 pay?
How was your holiday pay caluclated?

I really think you need to seek further professional advice as it seems like you may be disadvantaged in the calculation of your furlough pay due to being on maternity leave.

calcotti

You may need to look at Universal Credit
Information here https://www.citizensadvice.org.uk/benefits/universal-credit/. 
Claim online https://www.gov.uk/universal-credit/how-to-claim

There are online calculators to help you assess entitlement  https://www.gov.uk/benefits-calculators

You will be excluded from claiming UC if you have capital/savings over £16,000.

Be aware that claiming UC will end any Tax Credits, Housing Benefit or other means tested benefits you currently get.

michaelahobson09

How/where would I be able to get professional advice as I am on low income and cannot afford a solicitor

Mrsn

michaelahobson09 said:

How/where would I be able to get professional advice as I am on low income and cannot afford a solicitor

Citizens Advice Bureau or ACAS who are employment specialists, these are free services

poppy12345

Professional advice? why is that needed? If you're only entitled to £18 per week furlough then it's universal credit that you need to look at claiming. Use a benefits calculator. https://www.entitledto.co.uk/

CreditCardJunkie

Try maternity action website 

7Phil

poppy12345 said:

Professional advice? why is that needed? 

Because she might be disadvantaged with her furlough pay calculation because she was on maternity leave.
I'm not sure what the real answer is here so best to leave it up to the experts.

mkaela

I’m just wondering if you got an answer and they’ve sorted it out for you? I’m in a similar position to you, having returned from maternity leave in September and receiving 3 months no pay and 2 months SMP April-September last year. My furlough is better at £783 (before tax), but my normal monthly earnings are £1,500 so I expected £1,200 furlough pay. I’ve been in contact with payroll and they said they’re following gov guidelines, but from everything I’ve read they’re going against the guidelines of calculating furlough including SMP or unpaid leave. 

calcotti

See https://maternityaction.org.uk/2020/04/new-legal-advice-on-pregnant-womens-rights-during-the-covid-19-pandemic/ as previously suggested by creditcardjunkie