Not furloughed but asked to drop to 80% pay

robrymond

My wife has been dropped down to 80% of her normal wage rather than being furloughed on the pretence of working 4 days but in reality they are doing the same/if not more work across 5 days still. It varies within the company but to try and help and support them through the worst of this, that is what they've been asked. Is there any way to get government support to help top that back up? My understanding is that furloughing is just for those not working, but it seems harsh on those being asked to take pay cuts and end up doing more work as a result of others being furloughed. Any advice appreciated.

[Deleted User]

No. Dropping 20% while working 20% less is a good result.

Many people are dropping 20% income but working the same hours.

robrymond

Deleted_User said:

No. Dropping 20% while working 20% less is a good result.

Many people are dropping 20% income but working the same hours.

That is how it was sold, but the truth is they are doing five days still to keep the company afloat, which long term leads to a job so it isn't the biggest issue but it'd be nice for support in other ways to 'top it' back up for companies struggling.

sharpe106

No there is no government support to top it back up. The new earnings may make them eligible for some benefits but probably unlikely. The scheme is meant to protect jobs from being lost, not to protect employees pay. So yes some are benefiting it from whilst others are not.  Does it take them below minimum wage the new pay?

robrymond

sharpe106 said:

No there is no government support to top it back up. The new earnings may make them eligible for some benefits but probably unlikely. The scheme is meant to protect jobs from being lost, not to protect employees pay. So yes some are benefiting it from whilst others are not.  Does it take them below minimum wage the new pay?

No it doesn't. The company has contracts to fulfil and whilst they are furloughing a percentage of the workforce, the others have to work still for 80%.

sharpe106

Although granted not fair but in the current climate it is probably not worth fighting over. I would get it in writing that it is only temporary and only be doing 80% of the hours.  

robrymond

sharpe106 said:

Although granted not fair but in the current climate it is probably not worth fighting over. I would get it in writing that it is only temporary and only be doing 80% of the hours.  

Yeah they were willing to provide a letter as we're applying for a mortgage shortly and under the new pay we'd be short on the total required, but the problem is they don't know how long they'd be reduced. There estimation was for every 6 weeks of lock-down, it'd be 6 months of reduced pay but no idea in principal how that would work for employees who are furloughed unless they returned to work on 80% pay too.

sharpe106

I would ask them the plans as certainly unfair if they return at 100% and you have to remain at 80% when the return.  Are they rotating the staff on furlough to make it fair for everybody if they are cutting you to 80% pay?

discat11

Rock/hard place situation really, but absolute sympathy with the situation as it sounds very unfair.
I'd guess it depends on whether she thinks the company will still be viable and whether she wants to keep her job after the crisis I am afraid.
Does she have the 20% reduction in hours in return for 20% reduction of pay in writing?

robrymond

discat11 said:

Rock/hard place situation really, but absolute sympathy with the situation as it sounds very unfair.
I'd guess it depends on whether she thinks the company will still be viable and whether she wants to keep her job after the crisis I am afraid.
Does she have the 20% reduction in hours in return for 20% reduction of pay in writing?

It isn't rotational, but basically most upper management have been kept on a reduced pay with the top ones taking a 50% cut to keep them afloat. The job is worth keeping for sure so there is no reason to kick off, but sadly the reduced workload isn't there because they are doing several peoples jobs and there clients are expecting the same level of service. It is a rock and a hard place. In ordinary times it wouldn't matter but knowing we need proof of the salary for a new mortgage is hugely frustrating but then it is small fry in the grand scheme of the pandemic. 

sharpe106

Like you said the job is worth keeping for the long term, they had said they would put it in writing for your mortgage so I would personally suck it up and just get on with it. But the alternative could be a lot worse.