Furlough Calculation

jonsten1959

Could anyone please explain how furlough will be calculated in my case. I am working for the same company where I was employed on a full time contract for 5 years and last July 2019 i transferred to a zero hours contract.

Jeremy535897

If you have worked variable hours since July 2019, you will be a variable pay employee. Your reference salary for a furlough period will be the higher of your average wage for a period of equivalent length in 2019/20 up to the date of furlough, and your actual pay for the equivalent period in the previous calendar year. That may well be beneficial for you, at least for furlough periods up to the date you moved to a zero hours contract.

I am assuming you had continuity of employment when you moved to a zero hours contract.

jonsten1959

Not quite sure what you mean by this "average wage for a period of equivalent length in 2019/20 up to the date of furlough, and your actual pay for the equivalent period in the previous calendar year."

Jeremy535897

See official guidance:

Employees whose pay varies and were employed from 6 April 2019

If the employee has been employed continuously from the start of the 2019 to 2020 tax year, you can claim the highest of either:

• 80% of the same month’s wages from the previous year (up to a maximum of £2,500 a month)
• 80% of the average monthly wages for the 2019 to 2020 tax year (up to a maximum of £2,500 a month)

To calculate 80% of the same month’s wages from the previous year:

1. Start with the amount they earned in the same period last year.

2. Divide by the total number of days in this pay period - including non-working days.

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

4. Multiply by 80%.

Find an example of claiming for the same period last year.

To work out 80% of the average monthly wages for the last tax year:

1. Start with the amount they earned in the tax year up to the day before they were furloughed.
2. Divide it by the number of days from the start of the tax year – including non-working days (up to the day before they were furloughed, or 5 April 2020 – whichever is earlier).
3. Multiply by the number of furlough days in this pay period.
4. Multiply by 80%.

Find an example of working out 80% of average monthly wages for the last tax year.

jonsten1959

From November 2013 I was on a full time 40hr per week contract with my employer. From 1st July 2019 I transferred to a zero hrs contract. I was furloughed in April 2020 because of corona virus. I have a dispute with my employer as to how my furlough pay should be calculated. My employer is only using the hours I worked between Dec 2019 to February 2020. I believe to be not in line with the Government guidelines. Could anyone please confirm as to how my pay should be worked out.