Furlough - same company different job/contract

Phil_J_M

Hi All
I've been with the same company for the past 3 years. Furlough has been paid as per government guidelines. My company is getting rid of my current job and wishes me to sign a new contract for a different position. Would I automatically still qualify for Furlough pay?
Thanks in advance, Phil 

Andy_L

In what way? As far as your employer's consent to furlough your goes or HMRCs rules?

I would have thought that if your employer is moving you to a different role it would be because they actually have work for you to do in the new role. I would be suspicious if they are moving you from one furloughed role to another and would be scrutinising the new contract carefully to see if they are trying to pull a fast one (eg cut salary, worse t&c, loss of continuity of service, redundancy rights etc)

Phil_J_M

Hi Andy
My old role has ceased to exist (nothing suspicious at all, it's gone).
However, the new role (which is an existing role within the company) is one that is immediately furloughed due to a lack of work and is at a significantly lower rate of pay. My question is that if I change to the new role, will I still be able to receive Furlough pay under my old role's rate?
Hope that makes sense :-)
Thanks, Phil

MattMattMattUK

Phil_J_M said:

Hi Andy
My old role has ceased to exist (nothing suspicious at all, it's gone).
However, the new role (which is an existing role within the company) is one that is immediately furloughed due to a lack of work and is at a significantly lower rate of pay. My question is that if I change to the new role, will I still be able to receive Furlough pay under my old role's rate?
Hope that makes sense :-)
Thanks, Phil

Are you being made redundant, then being re-employed in the new role, or are you agreeing to a variation of your remuneration, terms and conditions?

Phil_J_M

MattMattMattUK said:

Phil_J_M said:

Hi Andy
My old role has ceased to exist (nothing suspicious at all, it's gone).
However, the new role (which is an existing role within the company) is one that is immediately furloughed due to a lack of work and is at a significantly lower rate of pay. My question is that if I change to the new role, will I still be able to receive Furlough pay under my old role's rate?
Hope that makes sense :-)
Thanks, Phil

Are you being made redundant, then being re-employed in the new role, or are you agreeing to a variation of your remuneration, terms and conditions?

Redundancy is Option 1; but as you say Option 2 is a total rewrite of Ts and Cs etc.

Andy_L

Phil_J_M said:

Hi Andy
My old role has ceased to exist (nothing suspicious at all, it's gone).
However, the new role (which is an existing role within the company) is one that is immediately furloughed due to a lack of work and is at a significantly lower rate of pay. My question is that if I change to the new role, will I still be able to receive Furlough pay under my old role's rate?
Hope that makes sense :-)
Thanks, Phil

I believe it will be based on your actual salary, ie the "significantly lower rate of pay", rather than using the rules for employees with "variable pay" which would average it out.
You could ask if your employer would top it up to the old amount.

Since furlough is entirely at the employers discretion you really need to get them to say what they think the rate will be. 

Phil_J_M

Hi Andy
Sadly, the company has shown a certain amount of sneakiness over the past year; hence my need to tread carefully.
Thanks, Phil

MattMattMattUK

Option 1: Redundancy
You receive contractual redundancy pay, this is tax free up to £30,000. 
Your employment technically ceases and you are then re-employed, this would mean your employer could not claim for your pay under CJRS.

Option 2: Variation of remuneration, terms and conditions
You receive no redundancy pay.
Your employment continues on new pay and conditions, your employer could claim for your pay via CJRS, they would need to pay you as per the reference period, not your new and reduced salary.

However, just to confuse things, what you are paid if they furlough you is not the same as what they can claim from CJRS. So they could still furlough you on your new contract on 80%, if that was your agreement with them, they would just be unable to claim the 80% from CJRS. They could also choose to pay you based on the old rate regardless of what option you choose, carrying the cost themselves. 

With that in mind it is probably worth asking them what they propose, otherwise you are lacking the information required to make a proper judgement. 

Phil_J_M

Hi Matt
Thank you for the very detailed response. I will definitely confirm the company's intentions before signing anything.
Regards, Phil