Employer charging back furlough contribution

SXX

This is from the furlough scheme:

Your employer must pay you all the grant they receive for your gross pay in the form of money. Your employer cannot enter into any transaction with you which reduces the amount you receive. This includes any administration charge, fees or other costs in connection with your employment.

Where you have authorised your employer to make deductions from your salary, these deductions can continue while you are furloughed provided that these deductions are not charges, fees or other costs in connection with your employment. You’ll still pay Income Tax, National Insurance contributions, Student Loan repayments and any other deductions (such as pension contributions) from your wage.     

And here is the link to the full guidance 

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme

Galloglass

There is a difference in perceptions here. The OP says it is a charge for furlough. The employer says it is a pay reduction to save the show. The reasons stated are immaterial as no-one will be forcing someone to work unlawfully i.e. for less than NMW. It is purely by agreement.

It leaves a bitter taste for the current employees and (a personal view) I can't see anyone wanting to work in central London in unsocial hours for NMW but some may have to. 

The other effect of this cut is that the government will pick up some of the slack with Universal Credit Top ups and other benefits such as housing element, or child element. 

It's not going to be pleasant but each must make up their own mind - and check benefit entitlements.

Otherwise depending on your contract and length of service, you may be entitled to redundancy payments if you do not wish to take up the "offer".

ThrowRATheatre

Galloglass said:

There is a difference in perceptions here. The OP says it is a charge for furlough. The employer says it is a pay reduction to save the show. The reasons stated are immaterial as no-one will be forcing someone to work unlawfully i.e. for less than NMW. It is purely by agreement.

Sorry, perhaps I'm being unclear but no, the employer is suggesting that we have the pay cut to repay furlough - they're seeing their contribution to it as a loan and they will install the pay cut as a way of recovering that loan when we return. They have not expressly stated to us that the show would go under without taking the money from us, but it is implied which just feels like a form of emotional manipulation, which pairs well with the "take it or be made redundant" stance. 

ThrowRATheatre

For anyone interested, someone's beaten me to it and The Stage have put out an article on it tonight

Galloglass

The article
https://www.thestage.co.uk/news/coronavirus-theatre-workers-being-asked-to-pay-back-furlough-contributions

Editor’s note: This news story was amended after publication to make clear that the contracts under discussion relate to offstage workers and not performers, who are self-employed and therefore generally ineligible for the government’s coronavirus job retention scheme. 20/07/2020

Keep us updated.

gt94sss2

If they are self employed would they not be eligible for SEISS not furlough?

Galloglass

gt94sss2 said:

If they are self employed would they not be eligible for SEISS not furlough?

The quote is confusing but it was there to confirm that it is the paid [PAYE] staff that are being asked to "buy" furlough. Performers [the talent] are self-employed so are not involved so the article is less newsworthy from a Stage point of view.

Initial thoughts were that "buying" furlough is unlawful but looking at it further, the way the scheme is drafted has enough plot holes for a skilled entertainments lawyer to find a way through.

prowla

Make sure you don't agree to the cut too.

silvercar

From October we will be places on an unpaid career break until the shows can reopen. Once they can reopen we're expected to return to less than the usual shows so will be paid at least half our usual wages. Once shows and wages return to full, the company will deduct 20% from the wage to recoup the cost of their contribution to our furlough, and we have to stay for a minimum term contract so they can recoup the cost.

There are 3 parts.

a) unpaid career break. You get another job or claim benefits.

b) return to less than usual shows. Up to you if you take up this offer. Assuming you do, you should make sure you get at least NMW (do theatres subscribe to LLW?) Benefits/ second job to top up income.

c) wage deduction. Up to you if you take the offer. If you do examine carefully the minimum contract term. what happens if you leave mid way? They will have to pay you NMW for the work you have done. Benefit top up if this leaves you below the minimum.

The only part that could be shown to be illegal, I'm guessing, is if new employees were taken on when the theatres are offering a full schedule and those that were furloughed are put on a lower wage, to allow for the furlough claw back than existing staff.

beckycole91

I am currently on furlough (Have been since end of March) and have just given in my four week notice to my employer. One of my reasons for doing this are because since April my pay went up to minimum wage even though I should be on slightly more than the sales associates due to my supervisor role in the company. No communication or consent was made and when I raised the issue they wouldn’t change it and basically said no pay increases will be issued so I looked for another job. 

 I was also told in a letter in April that employers are expected to stay with the company as a sign of gratitude for them paying the 20% top up during May but would be expected to pay this back if we leave before then and it would be deducted in our final pay.   

Where do I stand with this and do I have any rights to fight against this?