Furlough, how is the 80% worked out?

billynw

Hi all,

Just wanted to know if anyone can help me out with this one?

I have a friend that works in bar, his contract is for 40 hours a week.

But he’s been averaging 70 hours a week for the past 12 months.

Should his furlough payments be 80% of his contracted hours or his average earnings?

 Many thanks

antonic

1) Was he employed prior to 19/03/20 and reported to HMRC on the MAR20 Real Time Information return to HMRC ? - If he was then his employer can choose to furlough him.
2) If his employer chooses to furlough him then the amount is 80% of his monthly wage up to a max of £2500/mth.
3) If he is on variable pay then the employer can choose to base the furlough amount on either the best month of the last 12 months OR what he was paid on 28/02/20.

Jeremy535897

I don't think the question makes sense. If the friend has been working at the same bar (which OP implies) for 70 hours a week over the last 12 months:

• he was on the payroll at 19 March 2020, so could be furloughed
• but he was working so could not be furloughed, and if not furloughed by 10 June 2020, cannot be furloughed now
• who worked 70 hours a week in a bar during lockdown (3+ months out of the last 12)?

The hours worked exceed the maximum hours rules, but the employee may have waived that protection.

If the question is "what should his furlough pay be based on (assuming it is reduced to the amount that can be claimed under CJRS), his contractual hours or his actual hours", it's a bit late to be asking now, but the answer is as follows. If he is a fixed rate employee, which he may well be, as he has a contract for a specific number of hours a week, his furlough pay would be 80% of his basic plus overtime earned for the last pay period ending before 20 March 2020. If he is treated as receiving variable pay, his furlough pay would be 80% of the higher of his average wages including overtime for 2019/20 up to the date of furlough, or the wages including overtime for the equivalent calendar period in the previous year. These figures would be capped at £2,500 a month.

spiro

If your friend is working 70hr/week they are almost working the legal maximum which is 6 days *13hrs (24hr - 11hr overnight break) = 78/week.

bradders1983

6 months down the line and people are still asking how furlough pay is calculated?! 🤯