Redeployment/furlough/unpaid

Alfie2020

My brother lives in Northern and works for Argos (minimum 15hrs contract though he usually works more), which is now owned by Sainsburys.  He currently walks to work (5mins) and therefore only insures his car for pleasure (not commuting).  Under their lockdown rules individual Argos stores have to remain closed but he is being told that he has to redeploy to a hub which is some 30 odd miles away.  Those who do not have a car are being paid to stay at home but because he has a car (even though it is not insured for commuting) he is being told that he has to redeploy or stay at home unpaid.  They will pay just 30p per hour to cover travel costs but will not cover the increase in insurance that he would need to get.  They refuse to furlough him even though he can't do his actual job at present.  I am not familiar with NI rules and wonder if anyone can say whether what they are doing is legal or what he should do.  It doesn't strike me as being very fair and he might well be better off staying at home unpaid.  Doesn't seem like a good way of retaining loyalty from your staff.  Some advice would be really welcome.

Grumpy_chap

How do they know he has a car?
And that the car is available for him to commute to work?  Which, arguably, it is not if not insured.
Even ignoring the insurance, he may have a car and his partner may use the car for work, so it would not then be available for him to commute to work also.
I assume the 30 pence is per mile? 

elsien

Has he checked out the additional insurance cost - it may not be as much as he thinks. A job is a job and showing willing if there may be redundancies further down the line has to be part of the consideration as well. 

It seems unlikely that he would be better off unpaid than doing the commute. Has he actually worked it out or are you both guessing? 

Diamandis

If he would be better unpaid than travelling 30 minutes to work he must either be working 15 hours over a lot of days or be getting paid less than the minimum wage for over 18s. Is there a mobility clause in his contract? It's pretty standard that there would be for a retailer with many stores.

He needs to look at the actual costs and make a decision on whether this job is currently worth it for him. Is he able to get another job that requires no commuting right now?

Alfie2020

I'm not sure of the costs as I don't know what the price of fuel is over there.  I doubt 30p per mile would cover the fuel costs.  He does have a partner but she does not drive and also walks to her work.  I can't see how they can say to someone you don't have a car therefore you can stay at home paid and because someone else does that if they stay at home they won't be paid.  Given the 6 week lockdown in NI was announced some considerable time before Christmas how can they just spring this on someone after it has come into force?  As he can't carry out his normal job surely he could be furloughed.  He's not on a high salary either.

elsien

30p a mile would more than cover the fuel costs - I understand petrol costs there are lower than here. Plus his wages on top - you say he does extra hours most weeks. Alternatively is car share an option? 

Furlough is at the discretion of the employer. It is not a right. This is hopefully a short term measure until his usual store reopens. 

Grumpy_chap

Alfie2020 said:

I'm not sure of the costs as I don't know what the price of fuel is over there.  I doubt 30p per mile would cover the fuel costs.  

I understood that you were talking Northern Ireland - that is not some weird place where the price of fuel will be markedly different from anywhere else in UK or Europe.

HMRC rates for mileage are set at 45 pence / mile to cover all costs of motoring and reduces to 25 pence / mile after 10k business miles.  AMAP rates (where fuel only is paid) vary but are typically about 10-12 pence / mile.  The rate offered is not generous, but would more than cover fuel and probably the extra marginal costs also, including the change to insurance to cover commuting / business use.  

Has your brother enquired what the insurance cost would be?  It is possible that the admin fee will be as much as the premium change.

It is probably better for your brother to accept the change of location and manage the costs versus the mileage as best as he can.

Alfie2020

Although his contract is a minimum of 15hrs he has been regularly working over 30 hours a week.  I have no idea about costs in NI but it's all relative.  It would be a commute of 60 miles per trip.  If HMRC set at 45p/mile why is he only being told 30p per mile (I don't know what the conversion is between miles and km).  He is also concerned that as he does not actually have set days/hours in his current shop (they agree rotas a couple of weeks ahead), he doesn't want to be in a situation where he is asked to do a couple of hours one day, 3 the next, etc, etc  Could he insist that his hours are covered by working two days rather than it be spread out.

elsien

An employer can choose to pay as much or as little mileage as they like. The HMRC mileage rate is to do with tax and there is no obligation for a company to pay at that rate.
He needs to have a conversation with his manager about doing decent shift lengths. But if he was averaging over 30 hours a week, one or two hour shifts seem unlikely. He can’t insist on anything - but going in being reasonable is much more likely to get him longer shifts than making demands. 

Grumpy_chap

Alfie2020 said:

I have no idea about costs in NI but it's all relative. 

NI is not some far and away strange land - what do you think the general cost of things are going to be related to?

Alfie2020 said:

It would be a commute of 60 miles per trip.  If HMRC set at 45p/mile why is he only being told 30p per mile 

HMRC set maximum allowances that can be paid without being subject to income tax liability.  Argos can set any mileage rate they choose.  30 pence per mile is not generous, but it should also cover the commuting costs.  For 60 mile return trip, he will receive £18.

Alfie2020 said:

He is also concerned that as he does not actually have set days/hours in his current shop (they agree rotas a couple of weeks ahead), he doesn't want to be in a situation where he is asked to do a couple of hours one day, 3 the next, etc, etc  Could he insist that his hours are covered by working two days rather than it be spread out.

That seems like a reasonable request - your brother could certainly ask, but cannot insist.
These are difficult times and taking the work and being paid is probably far better in the short term and also, showing that he is flexible, will be better for long term job security.  It is entirely reasonable if Argos have to close the retail stores that they ask staff to support a depot dealing with mail-order sales.

Alfie2020

Well thanks for your help everyone.  I'll pass the comments on to him.  I know NI is part of the UK but they do have some alternative rules etc and he just wants to know what he can and cannot do.  They haven't said how many hours etc etc.  I don't see why though he should be expected to redeploy just because he has a car.  It doesn't seem fair at all.  They can't car share due to the covid rules.