changed jobs in Feb

drogers78

Hi, my wife left her old Job Feb 13th and started her new (full time) job in the last week of Feb. Their accountant has told her that she is only entitled to 80% of one weeks salary as that is what was on her first payslip, that is what she has claimed for and paid her. 

I am told that if she started a week later, they changed the rules so she would get a full months salary.

She was paid a full salary in April for March..  

This seems absurd that she would fall through in a loophole simply for changing jobs. Has she interpreted it correctly or should she get 80% of her full salary?

poppy12345

It's not May yet.  Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020. If that didn't happen then she can't be furloughed.

drogers78

poppy12345 said:

It's not May yet.  Employers can claim for furloughed employees that were employed and on their PAYE payroll on or before 19 March 2020. This means that the employee must have been notified to HMRC through an RTI submission notifying payment in respect of that employee on or before 19 March 2020. If that didn't happen then she can't be furloughed.

Sorry that was wrong how I explained it, I have edited it. She was furloughed at the end of March after a full salary. But the accountant is using the salary for Feb.

Jeremy535897

Not 100% clear but I think this may address the point you make. It is from https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme:

"If your employee has not been paid for a full pay period up to 19 March 2020

If your employee has not been paid for a full pay period up to 19 March 2020, you’ll need to work out what their usual wages are and then calculate 80%. To do this:

1. Start with amount they’ve been paid in their last pay period.

2. Divide by the number of days in their last pay period (including non-working days).

3. Multiply by the number of days that would have been in that pay period.

4. Divide by the total number of days in this pay period.

5. Multiply by the number of furlough days in this pay period.

6. Multiply by 80%.

Example

Employee started work for B Ltd on 21 February 2020 and is paid on the last day of each month. The employee had not had a full pay period up to 19 March 2020, but was paid £700 as a pro-rata of their salary on 29 February 2020. There are 9 days between 21 February and 29 February. The employee agrees to be furloughed from 25 March 2020. There are 7 days between 25 March and 31 March.

1. Start with £700 (the amount they were paid in their last pay period)
2. Divide by 9 (the number of days in their last pay period – including non-working days)
3. Multiply by 29 (days in February)
4. Divide by 31 (the total number of days in the March pay period)
5. Multiply by 7 (the number of furlough days in the March pay period)
6. Multiply by 80% - which is £407.46"

drogers78

That sounds as though she is going to get screwed over simply for changing jobs in the worst possible week (last week of feb). If I have understood that correctly. Let's say for argument sake she is paid £1000 a month, but she has started working in the final week of Feb. £250. She then worked March and was paid £1000 and was then Furloughed.
They are now paying her 80% of that £250 because that is what they paid her in Feb. 
That can't be right. Must be thousands who changed jobs in Feb.

sharpe106

The example was only for a week of furlough. They are basically calculating an average working day and using that as a baseline.

calcotti

drogers78 said:

That sounds as though she is going to get screwed over simply for changing jobs in the worst possible week (last week of feb). If I have understood that correctly. Let's say for argument sake she is paid £1000 a month, but she has started working in the final week of Feb. £250. She then worked March and was paid £1000 and was then Furloughed.
They are now paying her 80% of that £250 because that is what they paid her in Feb. 
That can't be right. Must be thousands who changed jobs in Feb.

They’ve done it wrong then, as explained in Jeremy’s reply.

drogers78

calcotti said:

drogers78 said:

That sounds as though she is going to get screwed over simply for changing jobs in the worst possible week (last week of feb). If I have understood that correctly. Let's say for argument sake she is paid £1000 a month, but she has started working in the final week of Feb. £250. She then worked March and was paid £1000 and was then Furloughed.
They are now paying her 80% of that £250 because that is what they paid her in Feb. 
That can't be right. Must be thousands who changed jobs in Feb.

They’ve done it wrong then, as explained in Jeremy’s reply.

Thank you. Sorry for what may seem a basic question, so you think she should get a monthly rate?

Jeremy535897

They should convert February's pay to a monthly rate, and apply that to the number of days furloughed.

drogers78

Jeremy535897 said:

They should convert February's pay to a monthly rate, and apply that to the number of days furloughed.

Thank you so much.