Furlough pay seems incorrect (part time worker)

HuffyPuffy

A query, can anyone advise?
Am contracted 1 day a week in office, often will do extra day or more to cover other staff, small company with under 15 employees. My pay regularly fluctuates, depending on whether it's a 4 or 5 week month and am paid accordingly for the 4 or 5 days. (4 times in the last 15 months pre covid, are the only times I have only earned contracted salary). 
All apart from 3 staff were furloughed in March, the day following announcement by the PM. My March salary arrived in bank as usual,  including 7 additional days worked, as well as the 5 days worked via my contract that month.
April and May were paid as basic 4 day months at 80%. However, June payment was same, whereas I thought it should have been 5 week month,  and would have been, had I been in the office. Company accountant says it was worked out in March as per furlough scheme and there is nothing he can do as is fixed monthly and he can only pay my contracted salary. (Which is incorrect for June payment to me, in my opinion)
I have been told by well meaning friend that my salary should have been worked out on March last year, or at least accountant should have made adjustment for 5 week month (will happen again in August!).

Advice please, a full day (even at 80%) lost, when I was expecting it, is galling!

Jeremy535897

If you are regarded as a fixed rate employee, your pay for furlough would be based on your wage for the last pay period prior to 20 March 2020, probably February 2020. If that was a 4 day month, that is what they will use.
If you aren't, your pay is based on the higher of the equivalent pay period last year, and the average wage for 2019/20 up to furlough.

HuffyPuffy

Thank you.
How do you determine the fixed rate? As I mentioned,  my salary changes as to whether it's a 4 week or 5 week month. I'm contracted to work the same day weekly. My Feb payment was 4 days plus 20 hours (2.5 days) My furlough payments are just 4 days less 20%

Jeremy535897

From Treasury Direction:
"A person is a fixed rate employee if-
(a) the person is an employee or treated as an employee for the purposes of CJRS by virtue of paragraph 13.3(a) (member of a limited liability partnership),
(b) the person is entitled under their contract to be paid an annual salary,
(c) the person is entitled under their contract to be paid that salary in respect of a number of hours in a year whether those hours are specified in or ascertained in accordance with their contract (“the basic hours”),
(d) the person is not entitled under their contract to a payment in respect of the basic hours other than an annual salary,
(e) the person is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week or month in equal weekly, multiple of weeks or monthly instalments (“the salary period”), and
(f) the basic hours worked in a salary period do not normally vary according to business, economic or agricultural seasonal considerations."
I don't think you meet (e), because you get paid a different amount for some pay periods than others. If I am correct, then you should be paid based on the higher of the average of 2019/20 up to furlough, and the equivalent calendar period last year.

HuffyPuffy

Jeremy535897 said:

From Treasury Direction:
"A person is a fixed rate employee if-
(a) the person is an employee or treated as an employee for the purposes of CJRS by virtue of paragraph 13.3(a) (member of a limited liability partnership),
(b) the person is entitled under their contract to be paid an annual salary,
(c) the person is entitled under their contract to be paid that salary in respect of a number of hours in a year whether those hours are specified in or ascertained in accordance with their contract (“the basic hours”),
(d) the person is not entitled under their contract to a payment in respect of the basic hours other than an annual salary,
(e) the person is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week or month in equal weekly, multiple of weeks or monthly instalments (“the salary period”), and
(f) the basic hours worked in a salary period do not normally vary according to business, economic or agricultural seasonal considerations."
I don't think you meet (e), because you get paid a different amount for some pay periods than others. If I am correct, then you should be paid based on the higher of the average of 2019/20 up to furlough, and the equivalent calendar period last year.

Thank you, you have confirmed what I was thinking. In this case, they have made a bit of a c*ck up, which I queried when April pay went in. Now, how do I check that you are correct on point (e) as though this is a lovely firm,  I need to point them to points in law...... ho hum.

Jeremy535897

See paragraph 19 of 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/895778/Further_Treasury_Direction_made_on_25_June_2020_under_Sections_71_and_76_of_the_Coronavirus_Act_2020.pdf

They will have to decide whether they think that is the correct interpretation.

HuffyPuffy

Thank you Jeremy 

phillw

HuffyPuffy said:

Thank you.
How do you determine the fixed rate? As I mentioned,  my salary changes as to whether it's a 4 week or 5 week month. I'm contracted to work the same day weekly. My Feb payment was 4 days plus 20 hours (2.5 days) My furlough payments are just 4 days less 20%

If you are contracted for a certain number of days/hours a week which you are paid a certain rate for, but are paid monthly then you are not a fixed employee as your pay varies every month.
I may be wrong, but my understanding of your situation is that you should be paid the same amount every month which is
80% of the wages for the equivalent period last year or
80% of an average of last years wages if you were employed since April 2019 or .
80% of an average of the wages since you started employment if you started after April 2019.

Jeremy535897

OP was employed in March 2019 so no need to consider last line of previous post.