Furlough from 1st July and employer contributions

SaraD

Hi, I work p/t on a fixed-term contract for a travel company. I've been furloughed until now, but my contract expires 31st July. I want to ask my company whether they'd extend the contract (under 'normal' circumstances I'm sure they would have). My concern is they may not do so because they will need to start contributing and there is no business income right now, as it's a tour operator. My question is, can I waive my right to these contributions in some way? For example, a voluntary deduction in my salary to cover the NI/pension costs? I'd rather be kept on under those terms than not at all. Thanks.

poppy12345

All you can do is speak to your employer and they will either say yes or no. You may even be back working before then.

Jeremy535897

They have to pay you at least 80% of your reference salary, in cash, to be able to claim CJRS in respect of you, so what you propose is not possible.

SaraD

poppy12345 said:

All you can do is speak to your employer and they will either say yes or no. You may even be back working before then.

Thanks, poppy12345, although there are no bookings until next year, so I know there won't be any work.

Jeremy535897 said:

They have to pay you at least 80% of your reference salary, in cash, to be able to claim CJRS in respect of you, so what you propose is not possible.

Appreciate that, Jeremy535897 - thanks, perhaps I'm not understanding properly. They'd still pay me the 80% salary - it's the National Insurance and Pension contributions they'd be asked to pay from August that I'm talking about. I think this will affect their decision to extend my contract. Is there a legal way around this, for example, can I offer to make a donation to the company to cover the costs of the NI and pension contribution? 

Jeremy535897

I don't think so, because what you would effectively be doing is receiving less than 80% of your reference salary. The guidance says, for example:
"The entirety of the grant received to cover an employee’s subsidised furlough pay must be paid to them in the form of money. No part of the grant should be netted off to pay for the provision of benefits or a salary sacrifice scheme." 
Arrangements where you made a "voluntary donation" back to the employer would seem to breach this rule. I also suspect that the company would not be happy about a "voluntary" contribution.

sharpe106

The employer must pass on everything they claim back to the employer. So I doubt HMRC would look favourable if you gave some of it back to cover costs or otherwise every company would try that.

SaraD

Thanks everyone. It's such a pity that I'll probably be redundant for the sake of around £30 a month, which I'd happily waive. Appreciate all the help. 

Jeremy535897

SaraD said:

Thanks everyone. It's such a pity that I'll probably be redundant for the sake of around £30 a month, which I'd happily waive. Appreciate all the help. 

I assume it is a lot of £30 a months for the employer, otherwise it wouldn't make sense (you would simply offer to work free overtime in the future to make it up).

Grumpy_chap

OP can't lose anything by asking.

SaraD

Jeremy535897 said:

SaraD said:

Thanks everyone. It's such a pity that I'll probably be redundant for the sake of around £30 a month, which I'd happily waive. Appreciate all the help. 

I assume it is a lot of £30 a months for the employer, otherwise it wouldn't make sense (you would simply offer to work free overtime in the future to make it up).

Apologies, I wasn't expecting further comments. but thanks again - I like the idea of offering to work free overtime, it might still be an option.

SaraD

Grumpy_chap said:

OP can't lose anything by asking.

Good point, thanks :-)