Furlough

vwbeetle71

iam on furlough & have not been getting paid my shift rate I usually get & that has always been part of my wages through a agreed pay deal every year . Is this right ? 

[Deleted User]

There is not enough information to know from your post, however I will try and supply some information.
Furlough pay is calculated on the below, your "shift rate" may be classed as a discretionary bonus, which is why it is not being paid, it will also depend on what is in your furlough agreement letter, which should set out how you will be paid for the period of furlough. 

The amount you should use when calculating 80% of your employees’ wages for hours not worked, is made up of the regular payments you are obliged to make, including:

• regular wages you paid to employees
• non-discretionary payments for hours worked, including overtime
• non-discretionary fees
• non-discretionary commission payments
• piece rate payments

You cannot include the following when calculating wages:

• payments made at the discretion of the employer or a client - where the employer or client was under no contractual obligation to pay, including:
  • any tips, including those distributed through troncs
  • discretionary bonuses
  • discretionary commission payments
• non-cash payments
• non-monetary benefits like benefits in kind (such as a company car) and benefits received under salary sacrifice schemes (including pension contributions) that reduce an employee’s taxable pay

Full details on this link.
https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme

Jonesy1977

I believe Shift Allowance is discretionary - for example if you were signed off sick then you would likely receive SSP not SSP + Shift allowance.  You may also not be paid shift allowance when taking holiday.   

Jeremy535897

Jonesy1977 said:

I believe Shift Allowance is discretionary - for example if you were signed off sick then you would likely receive SSP not SSP + Shift allowance.  You may also not be paid shift allowance when taking holiday.   

That doesn't make it discretionary. You don't get paid overtime if you are on SSP either. You get paid SSP. If you are entitled to the shift allowance when you work, it is not discretionary.

Jonesy1977

Jeremy535897 said:

Jonesy1977 said:

I believe Shift Allowance is discretionary - for example if you were signed off sick then you would likely receive SSP not SSP + Shift allowance.  You may also not be paid shift allowance when taking holiday.   

That doesn't make it discretionary. You don't get paid overtime if you are on SSP either. You get paid SSP. If you are entitled to the shift allowance when you work, it is not discretionary.

Good point, however it looks like it is contract dependant (possibly union negotiated which might be tighter) but looks like it could be deemed Discretionary as it is working hours related and they can change (you won’t be doing shifts) worth checking with HR but perhaps  they have already looked at your contract. The furlough calc should be based on a normal month, are you on shifts every month? 

Jeremy535897

Jonesy1977 said:

Jeremy535897 said:

Jonesy1977 said:

I believe Shift Allowance is discretionary - for example if you were signed off sick then you would likely receive SSP not SSP + Shift allowance.  You may also not be paid shift allowance when taking holiday.   

That doesn't make it discretionary. You don't get paid overtime if you are on SSP either. You get paid SSP. If you are entitled to the shift allowance when you work, it is not discretionary.

Good point, however it looks like it is contract dependant (possibly union negotiated which might be tighter) but looks like it could be deemed Discretionary as it is working hours related and they can change (you won’t be doing shifts) worth checking with HR but perhaps  they have already looked at your contract. The furlough calc should be based on a normal month, are you on shifts every month? 

It would only be based on the last pay period prior to 20 March 2020 if OP is a fixed rate employee. Shift allowances have been raised in earlier threads before the compulsory/discretionary guidance developed, and the conclusion was that it is normally contractual, and therefore not discretionary.

vwbeetle71

I alternate shifts every week I.e week of days then week of lates & have worked shifts for years & was on shifts when I went on furlough.  I get my shift rate on my holiday pay .

Jeremy535897

I believe it should be included in the calculation for CJRS.