Agency Worker - Zero Hours & Furlough - Looking for Advice

kaziec

I've been working for the same agency at the same job placement for over a year, averaging 45 hours p.w.  Initially I was told by the company I was placed with that their work was being suspended due to COVID and I would be called back to the same job once that business opened again.  This same information was given to my Agency.  My Agency told me they were placing me on the Job Retention Scheme and I was being furloughed and would be paid once they (the Agency) were getting the money in from the Government.  However, in the last couple of days, the Agency have done a complete U-turn and are now saying that due to "commercial decisions" they are no longer going to pay me the 80% (apparently it is going to cost THEM too much money now they've looked into it!).

Anyone in a similar position or understand this to be able to advise please?  I am remaining furloughed, not getting paid now or in the future on the Government Job Retention Scheme but the Agency wants me to go back into my old job when that re-opens.  Also, what costs are actually being incurred by the Agency in paying the 80% furlough pay?

General_Grant

kaziec said:

I've been working for the same agency at the same job placement for over a year, averaging 45 hours p.w.  Initially I was told by the company I was placed with that their work was being suspended due to COVID and I would be called back to the same job once that business opened again.  This same information was given to my Agency.  My Agency told me they were placing me on the Job Retention Scheme and I was being furloughed and would be paid once they (the Agency) were getting the money in from the Government.  However, in the last couple of days, the Agency have done a complete U-turn and are now saying that due to "commercial decisions" they are no longer going to pay me the 80% (apparently it is going to cost THEM too much money now they've looked into it!).

Anyone in a similar position or understand this to be able to advise please?  I am remaining furloughed, not getting paid now or in the future on the Government Job Retention Scheme but the Agency wants me to go back into my old job when that re-opens.  Also, what costs are actually being incurred by the Agency in paying the 80% furlough pay?

The cost of administering the scheme - ordinary payroll administration costs plus cost of making the claim via HMRC.  Also they should pay and then claim but clearly they want to claim and then pay so there is the opportunity cost (and interest) on that.

poppy12345

There's been so many threads with the question and lots of people are finding that agencies are not furloughing them. If they decide not to then there's nothing you can do because it's totally up to the employer with they choose to furlough you.

Use a benefit calculator to see if you're entitled to Universal Credit. Savings/capital of more than £16,000 will exclude you.

A claim for UC will end any tax credits you may already be claiming.

LilElvis

The major direct cost to the agency would be holiday pay as it continues to accrue during furlough. Even if you were to agree to take the holiday during furlough they would be liable to top it up to the full 100% and pay the employer's NIC on top. There's also the apprenticeship levy they would be liable for.

SXX

LilElvis said:

The major direct cost to the agency would be holiday pay as it continues to accrue during furlough. Even if you were to agree to take the holiday during furlough they would be liable to top it up to the full 100% and pay the employer's NIC on top. There's also the apprenticeship levy they would be liable for.

apprenticeship levy is only payable by businesses which have pay bill of over £3 million so if you work for a small agency, they are unlikely to have to pay apprenticeshop levy

daKlone

There are several costs to the agency that they CANNOT reclaim under CJRS:

1) They have to give credit for annual leave accrued during the furlough period (at your usual rate, not the 80% rate);

2) Whilst they don't have to pay employer's NI, they may still have to pay Apprenticeship Levy (if they have a paybill > £3M/year);

3) They still have the same overheads (payroll costs, scheme administration etc).

These are all costs that they have to bear which are unfunded, either by the client (end customer), the employee (you) or the Govt. On top of that the have the cashflow problem of waiting for the Govt to reimburse them. Many agencies feel that they can't (or won't) swallow these costs themselves and are not furloughing their employees (including me! ).