Change of Contract & Furlough

saragwatty

Hi Guys, I'm after as much advice as possible please.
I have worked since Feb 2019 for a large well known restaurant/pub chain, this was my 2nd job, so I was only part time.
In July I was offered a promotion and an increase in hours, which I accepted & my contract was then changed.
I handed in my notice & left my other full time job mid Aug & started full time at the pub in Sept.
As we are know in Lockdown 2.0, I have been placed on furlough, the company are only paying me based on my hours from 19/20 tax year, when I was working approx 5.5 hours a week. But had I not already been employed by the company, they would be pay me based on my wage from Sept to now.
I am fully aware of what the Government guidlines state for paying furlough.
My question is can they do this? Or should they take the change in my contract into account when working out furlough?
Thanks for reading.

Jeremy535897

Fundamental question: were you furloughed by the pub chain under the original job retention scheme, that is by 10 June 2020?
If you were, what they can claim is based on what they claimed then. If you weren't, they look at more recent data. You can see for yourself at https://www.gov.uk/government/publications/extension-to-the-coronavirus-job-retention-scheme/extension-of-the-coronavirus-job-retention-scheme

Remember they have to pay you according to your contract, as amended by any furlough agreement, and that does not have to be the same as they claim under CJRS for your wage (although they cannot pay you less than they claim).

saragwatty

Thanks for your response.
To answer your question 'yes' I was put on furlough under the original CJRS from 24th March through to 4th July, but I was only on a 4 hour contract then.
My contract was amended on 21st July to 35 hours along with a change in job role/title, this is where I am not 100% sure of where I stand with furlough pay.

Jeremy535897

What your employer can claim in respect of your employment under CJRS is indeed based on your reference salary under the original scheme. The fact that your hours have increased is of no help to them as the calculation is based on your average wage for 2019/20 up to the date of furlough, or pay for the equivalent calendar period in the previous year if greater, as per the link I sent you. That is a quirk of an imperfect system. You have a contract that entitles you to a much greater wage, and you would have to agree to that being reduced to your old level of pay during furlough.

You will have to decide how much fuss to make, for a period of furlough that we all hope will only last 4 weeks.

saragwatty

Jeremy535897 said:

You have a contract that entitles you to a much greater wage, and you would have to agree to that being reduced to your old level of pay during furlough.

You will have to decide how much fuss to make, for a period of furlough that we all hope will only last 4 weeks.

What could the implications be if I was not to agree to them reducing it?

Jeremy535897

Worst case is they dismiss you, without cost to them (except for a week's notice and any accrued holiday pay), as you have been there for less than 2 years.

saragwatty

Thanks for your help & advice, it is something to consider.

Jeremy535897

In your shoes I would try the short term hardship plea combined with the fact that you have sacrificed your other option to progress your career with them, and it is obviously working well as they thought you worth promoting. If they say they can't make an exception for you (and I suspect that is the real problem you will face), I would concede gracefully.