Furlough

ManishaPatel

Hi, 

My work is secured by a recruitment business and I am employed by an umbrella firm. This gives me continuity of employment with all statutory rights and benefits whilst enabling me to work for numerous different short-term assignments. I have no further work assignments due to the impact of Coronavirus.  I fall within the time frames to claim furlough.

According to my contract I get paid a salary, national minimum wage .  The balance of funds received from agencies is also paid to the workers and is often referred to as a discretionary commission or bonus (although it is not related to performance). It is my understanding that Umbrella employers guarantee to pay workers at least National Minimum Wage for hours worked even if the recruitment agency does not pay the umbrella.  This is a contractual commitment which is intended to give umbrella employees additional stability and certainty

 I have been advised that in guaranteeing National Minimum Wage and simply referencing the balance of the pay as bonus or commission, 80% of the furlough payment will be based on National Minimum Wage and that balance of the pay is misconstrued as a performance related bonus, which it clearly is not. Until my umbrella employer has confirmation from the government on this matter, it is impossible for them to calculate my furloughed pay based on an average of all earnings because there is a significant risk that this amount will not be reimbursed by the government.

 It is essential that all umbrella employees have the option to receive furloughed pay based on their average earnings and not solely on 80% of NMW. Who should I be reporting my concerns to?  I cannot stress enough the importance of this issue for me and for the many thousands of other workers in the same situation.

Thank you in advance for your help

Manisha

poppy12345

As you're an employee you're not entitled to claim furlough. You maybe eligible but your employer needs to claim it but most umbrella companies do not furlough employees going by lots of other threads on the forum.

ManishaPatel

Thanks for your comment Poppy. Anyone working under an umbrella company can be furloughed. My question relating to furlough is not whether I am entitled to furlough, but that the amount I would receive will be based on NMW and not the full payment I receive for the work I did, as the remainder is classed as a discretionary bonus, which is unfair. 

Hope the above offers some clarification.

sharpe106

Surely they can caluclate you pay like a variable paid employee?