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Furlough clarification needed please
chergar
Posts: 189 Forumite
Any advice most welcome
husband’s company have “asked” all employees to take a 20% pay cut, in return he will work 20% less hours.
a lot of staff have been placed on 2 month furlough starting next week.
husband has asked if the furlough can be rotated so some have one month then others have the second month rather than the same people working the whole time (excluding those with underlying health conditions, childcare responsibilities etc), the industry they work in is considered high risk.
company have said no as those doing the second month will lose more money as the furlough wages will be less due to being based on last wage (so 80% of 80%).
as it is those out working will be working for the same money as those on furlough, this doesn’t seem fair but in these times we know we all have to pull together to get through. The main sticking point is the rotation of furlough not being considered.
does anyone know if the furlough amount is based on the last pay amount, basic salary, or is it based on average salary over the year?
any clarity is much appreciated, thanks.
husband’s company have “asked” all employees to take a 20% pay cut, in return he will work 20% less hours.
a lot of staff have been placed on 2 month furlough starting next week.
husband has asked if the furlough can be rotated so some have one month then others have the second month rather than the same people working the whole time (excluding those with underlying health conditions, childcare responsibilities etc), the industry they work in is considered high risk.
company have said no as those doing the second month will lose more money as the furlough wages will be less due to being based on last wage (so 80% of 80%).
as it is those out working will be working for the same money as those on furlough, this doesn’t seem fair but in these times we know we all have to pull together to get through. The main sticking point is the rotation of furlough not being considered.
does anyone know if the furlough amount is based on the last pay amount, basic salary, or is it based on average salary over the year?
any clarity is much appreciated, thanks.
0
Comments
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Employees who are furloughed are either fixed rate employees or variable pay employees. CJRS grants are based on reference salary, which for fixed rate employees looks at the pay for the pay period ending before 19 March 2020, so for monthly salaried workers it will normally be based on February 2020 wages. For variable pay workers who were employed prior to 6 April 2019 it is based on the higher of the equivalent calendar period in the previous year (so April 2020 is based on April 2019) or the average pay in 2019/20.
In neither case will a reduction in pay after 5 April 2020 have any impact.0 -
Erm, no...the second furlough won't be 80% of 80% of your normal wages, that would be crazy!
Your employer calculates the amount they can claim back on the CJRS at the start of your furlough and then pays you that for the entire period.
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme
Everything posted above is my personal opinion. It may be right, it may be wrong, but it is mine.
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