Contract amendments while on furlough

jampson10

When initially furloughed my plc company put in writing to all employees they would be paying an additional top up to ensure we were paid at 100%. This lasted 1 month. The company then made all staff sign a document allowing them to make changes to our employment contract which in turn allows them to change how much we are paid or indeed allow them to lay us off for upto 4 weeks without pay. Shortly after this they pulled the offer to pay us at 100% and informed us only furlough 80% would be paid. Some employees have been unfurloughed but only a select few that seem to be the management choice. How is this fair or legal? Are they allowed to do this legally if they put in writing we were going to be paid at 100%? I have not had any time to request any payment holidays as I thought I was going to be paid and I feel your rug has been pulled from under my feet and I have been left in the lurch! Any help would be greatly appreciated. Thanks J x

Jeremy535897

If you agree to an employer being able to change your employment contract, then they can change it, although they cannot alter entitlement to pay that has already accrued. Companies can choose who to furlough, but the usual discrimination and equality rules apply. These cover race, gender, pregnancy etc and not just preferring one employee over another. Payment holidays will probably be far more quickly processed at the moment, as the bulk of applications will have been made.

jampson10

Thanks. We were furloughed when the initial lockdown happened. Various forms where signed to confirm this and allow the employers to process a furlough payment. A few weeks later we were asked to sign a document agreement to contract amendments. The letter stated if we did not sign then we would risk not being paid any furlough. The document was signed but many feel we have signed away all our rights as the following amendments have now been inserted to our employment. 

‘The Company shall be entitled to lay you off or impose short-time working if required and for a period of time as the Company shall decide;

o While you are laid off you shall not be required to work and shall have no right to remuneration other than as set out below;

o While you are on short-time working your working hours may be reduced as the Company sees fit and your remuneration shall be correspondingly reduced;

o The Company shall give you not less than one week's notice in writing of lay-off or short-time working. Thereafter the Company shall give you as much notice as is reasonably practicable of any further change to your hours including a return to normal working hours;

o During any period of lay-off or short-time working the Company shall pay statutory guarantee pay in accordance with legislation in force at the time.

Is this fair or right that a company can do this? Can’t help feeling now totally exposed due to these amendments we had no choice but to agree to. 

Thanks 

Jeremy535897

I think many employees have had to sign such terms from many employers or risk redundancy. The alternative was probably that the employer went bust, so every employee lost their jobs.

jampson10

Thanks. It was the manner we have been made sign. If we didn’t agree then no pay potentially. Doesn’t seem right. I understand the company threat to have to close the doors but with the help available to them from the government this shouldn’t have been something that has been put back onto employees already taking a pay cut. 

Jeremy535897

The majority of the help to them is probably in the form of the payment of your wages while you are furloughed.

jampson10

Yes but signing a contract allowing them to half my hours if they wish with little notice? Wouldn’t I be financially better to be made redundant and go onto find another job? If I am unfurloughed the amendments to the contract allow the employer to have me return to work 1 hour a week if they wish? Which would just force my hand to have to resign with no redundancy package.

Jeremy535897

You are already committed to a course of action that exposes all the employees to some risk. You are hoping that the reductions now will enable the business to recover, so you don't need to look for another job, which may not be easy to find. Statutory redundancy, where your pay varies, is calculated looking back over the previous 12 weeks.

sharpe106

The problem is now you have already accepted it, so it is too late. Yes it looks like you have signed away a fair few rights. You could try to fight it that you were forced to sign it under duress. Are you in a union?

With regards to them changing their mind on paying you a 100% although not nice, I doubt you would be able to do anything about it as they can say the situation has changed.

Sharon2365

I am currently on furlough since 1st April and as of 7th May am under redundancy consultation, but it’s unclear if this means I default back to my pre-furlough salary level during the consultation period?  Wouldn’t this be considered abuse of the furlough scheme, as it’s purpose is to avoid redundancies not make them cheaper for the business?

sharpe106

Sharon2365 said:

I am currently on furlough since 1st April and as of 7th May am under redundancy consultation, but it’s unclear if this means I default back to my pre-furlough salary level during the consultation period?  Wouldn’t this be considered abuse of the furlough scheme, as it’s purpose is to avoid redundancies not make them cheaper for the business?

No as it is only the consultation period you have not been made redundant yet.