Annual leave and furlough

annc64

Hi can anyone help.
My partner was furloughed on the first of April until the 7th of July when he was then asked to work one day a week and furloughed for the remaining four.  The owner of the company informed staff that they must take their annual leave before the end of the year and wrote in an email that he would pay the 20% deficit so that they wouldn't lose out.
My partner booked a week's annual leave (5 days) in July and as he had worked 3 days in July expected to receive his full salary.  However this was not the case.  He received the correct amount for the 3 days he worked, but when it came to holiday pay he only received £65.75 for 5 days annual leave, which amounts to £13.15 a day for a 40 hour week!  He has tried without success to get this checked, but his employer still insists this is right.  Unfortunately it appears no one else has taken any leave as yet so he cannot compare with anyone else. 
Does anyone have any advice on this please?

rosiesposies

annc64 said:

Hi can anyone help.
My partner was furloughed on the first of April until the 7th of July when he was then asked to work one day a week and furloughed for the remaining four.  The owner of the company informed staff that they must take their annual leave before the end of the year and wrote in an email that he would pay the 20% deficit so that they wouldn't lose out.
My partner booked a week's annual leave (5 days) in July and as he had worked 3 days in July expected to receive his full salary.  However this was not the case.  He received the correct amount for the 3 days he worked, but when it came to holiday pay he only received £65.75 for 5 days annual leave, which amounts to £13.15 a day for a 40 hour week!  He has tried without success to get this checked, but his employer still insists this is right.  Unfortunately it appears no one else has taken any leave as yet so he cannot compare with anyone else. 
Does anyone have any advice on this please?

why? if he was still furloughed for 4 days a week then he wouldnt get his full salary.

80% of his annual leave was paid by furlough, the company is paying the top up, not the full day

should be 3 lines on his wageslip 

Salary for days worked
Furlough (including 80% owed for any annual leave days)
20% top up for annual leave. 

if 80% of his day rate is minus 13.15 seems to be correct. 

CDH

Is your partner on a varied pay pattern (ie paid for hours worked each week/month) or a fixed amount?

annc64

a fixed amount, his normal working pattern is Monday to Friday 8.30 until 5.30.

annc64

So is annual leave paid at furlough rate as well?
He worked three days, was paid furlough at .69 (what ever that is) for the month and then given the £65.75 for the five days annual leave he took.  
I don't understand how it all works, but if got 80% from furlough and 20% from his employer for days worked and annual leave then surely he would get his full salary for that month?

bradders1983

Looks fine to me, the employer adds in the 20% to top it up to 100%, he wont be getting 180% for a days holiday.

Unless you are claiming he didnt even get the 80% for the holiday days and just got the 20%?

annc64

he got paid .69% furlough, then 3 days pay for the 3 days he worked during July and then £65.75 for 5 days annual leave taken in July leaving him with a short fall of £170.

bradders1983

Well lets say he earned £100 a day. If he took an annual leave day he should get £80 for the day on furlough and then £20 annual leave to take it up to £100. Obviously it is then taxed.

If he is coming out with less than £100 in the above example then it is clearly wrong.

annc64

This is the breakdown he got from his employer: (I have not included the figures as this will reveal my partners salary)

Furlough pays 80% of salary. (it says .69% on his payslip)

Then what is annual salary is

annual salary/365 x 80% = daily rate for furlough pay (not sure why it's 365 days when he doesn't work shifts)

annual salary/365 = normal daily rate

 So his holiday pay is the difference per day between his normal pay and furlough pay:

I know nothing about wages, but I would have thought if he was being paid furlough at .69%, 3 days salary for days worked and  he worked and then 5 days annual leave he would get his full salary for that month.  Instead his salary is reduced by £170 and that included the £65.75 that he got for taking 5 days annual leave. 

annc64

The other thing my partner's employer has said that he will not pay or give back any leave for bank holidays whilst employees were on furlough.  Not sure that sounds right either

epm-84

bradders1983 said:

Well lets say he earned £100 a day. If he took an annual leave day he should get £80 for the day on furlough and then £20 annual leave to take it up to £100. Obviously it is then taxed.

If he is coming out with less than £100 in the above example then it is clearly wrong.

If he's opted in to the employer's pension scheme then a pension deduction will be taken from the £100, then the tax and NI will be calculated from what is left after the pension deduction is taken which complicates things slightly.