Has anyone not been furloughed but asked to take a substantial pay cut?

(52 Posts)
CaroleBaskin Sun 05-Apr-20 09:21:34

While doing the work of the majority of the furloughed workforce?

This is what my work has done. I know others workplaces are doing the same. We have a small team of people remaining who have also had to take pay cuts - I believe at the same amount but you never know. This pay cut is almost as much as the furloughed workers.

If you have had this how are you feeling about it?

Do we have to sign something to say we agree?

OP’s posts: |
BuffaloCauliflower Sun 05-Apr-20 09:25:02

My DH has been asked to go to 80% pay but also 80% work, which is a substantial drop in income for us. But not quite the same as you. Are they expecting you to do the same workload on less pay? That’s less reasonable. Offer to do 0.8 time if they want you on 0.8 pay

mangocoveredlamb Sun 05-Apr-20 09:25:17

My DH has had a 20% pay cut. His company are not asking for people to furlough. I’m a key worker and we have two dc (under 6) at home, but if he furloughs it would be a more than 50% pay cut due to the government cap. So he will continue to work, now doing their work of more than two people (the furloughing is not due to lack of work but lack of cash flow) while looking after two young children, and it’s crap.

CaroleBaskin Sun 05-Apr-20 09:31:46

We are expected to do a full working day and so far I have had to put in around one to two hours extra per day - working later and no lunch break as calls always seem to be arranged at that time with urgent stuff to be done so you grab something at around 3. I think it's safe to say we are expected to get the job done regardless of hours. I think soon enough the work will drop but before it does we will all be teetering on the edge of insanity.

@mangocoveredlamb I'd say we are the same. Lack of cash flow is causing the issue.

I hope both your DHs don't get too stressed by it all.

Have they been given anything to sign to say they accept?

OP’s posts: |
StrawberryBlondeStar Sun 05-Apr-20 09:36:37

My DH in this situation 20 % pay cut - same hours (although working from home so no longer 3 hour round commute). A lot of colleagues have been furloughed. His view is he would rather still be working as almost certainly there will still be redundancies and he is demonstrating he is essential/needed, those on furlough will have more difficulty.

Ragwort Sun 05-Apr-20 09:39:42

My DH is in the same position as Strawberry’s, WFH, with a pay cut, and covering furloughed employees work. Yes it’s tough but hopefully means his job is more likely to still be there at the end of all this .... many companies will be seriously reducing their workforce. My job has been furloughed and I can only hope that I will have a job to go back to.

Mintjulia Sun 05-Apr-20 09:41:36

Op, bear in mind because of the pay cap for furloughed workers, the cut is often much more than 20%. I’m furloughed and am down about 40%.

Soontobe60 Sun 05-Apr-20 09:47:27

If your net monthly pay is e.g. £4K, and gets reduced by 20%, you'd still take home over £3200. If you're furloughed you'd only take home £2500. I would be arguing that the company award you a bonus ncebtheir cash flow is improved however!

BuffaloCauliflower Sun 05-Apr-20 09:47:29

@mangocoveredlamb there’s a cap to what the government will give but not what a company has to pay. We’ve topped up the pay of those on over £35,000 that we’ve furloughed so they’re getting 80% of whatever their pay is, even if above the cap

Soontobe60 Sun 05-Apr-20 09:48:31

@BuffaloCauliflower

That's good. Not every business is throwing their staff to the wolves.

Paintforkitchen Sun 05-Apr-20 09:52:17

95% of dh company is now furloughed. He is on 80% pay and officially only working 4 days. However as their entire industry has shut down he will not be able to fill 4 days for too long. Not sure what will happen further down the road.
He did have to agree to it and sign something but he is happy to do that as he views it as another proactive measure to making sure there is a company to return to in the future.

FunnyInjury Sun 05-Apr-20 09:56:49

I'm working but colleagues have been furloughed so I'm working more hours now covering the extra.
However my employers have increased my hourly rate as well as paying the extra hours. Also been promised a bonus when it's all over.
Furloughed wages also being made up to normal salary for the others.

Am very grateful to have a safe job. I really feel like lots of people will suffer after all this.

FairyBunnyAgain Sun 05-Apr-20 09:57:54

I am seeing this from both sides. Most of the employees have been furloughed due to lack of work, those left are the senior management team, middle managers have gone and a few select employees to allow us to continue to provide the remaining customers with the service they require. We are a business to business organisation and some employees have to be onsite.

Senior management are expected to cover all areas as necessary during this period Including being onsite working alongside the employees if required, working 100%+ and are currently receiving normal pay.

As a manager I had to justify who I needed to keep in my team and why their job still existed. We are the only team who can and do now work entirely from home. If we remain in lockdown into May then I can see us dropping to only the senior management team and then the final step will be that we do less and take less pay. Anything to keep the company going.

When we come out of this process we won’t be suddenly unfurloughing (or whatever it is called) all the staff we will have to reverse the process and this may well lead to redundancies.

mangocoveredlamb Sun 05-Apr-20 10:00:27

@BuffaloCauliflower that’s great, but sadly not what DH’s company are doing. And as others have said there is a certain amount of “proving himself” going on. So crazy hours. On 80% of pay this is pretty galling.

CaroleBaskin Sun 05-Apr-20 10:04:41

I do see both sides of it and fully agree that I would rather have this than be furloughed or worse, out of a job at any time and even more so in the current climate.

I am over the cap for furlough and I don't think a lot of discussions have made it clear that it's limited not just 80%. DPs employer are cutting everyone using a fair tiered system and topping everyone up to 80% regardless of wage if furloughed.

I'm not sure how I feel about it as it's such a mixed bag of emotions. It's shit but could be much much worse so I don't want to be negative. I am in a lucky position really.

However, what I'm saving in petrol, I'm spending in snacks. I don't know if I will fit out of the door when it's time to go back. grin

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thewinkingprawn Sun 05-Apr-20 10:06:47

I know many will disagree but I’d be pleased he still has a job, there will inevitably be redundancies at the end of this so unless you’d rather he was in that pool then I’d be pleased he hadn’t been furloughed as the likelihood is he is considered too necessary for the business so will keep his job longer term. I’m a business owner and we’ve had to do the same with our staff, we know redundancies will be on the horizon once the support is over. No business wants to be in this position and everyone is doing the best they can right now. We’ve all just got to muck in.

potter5 Sun 05-Apr-20 10:08:01

I have been furloughed but will receive full salary as employer will pay the other 20%. I am very lucky. However in my letter from them it states that I cannot work for them whilst in furlough as the government is paying my salary of 80%.

Why are people still doing the work for their employers?

thewinkingprawn Sun 05-Apr-20 10:10:30

soontobe60 I’m afraid it isn’t about throwing staff to the wolves - for many companies it is simply that they have no cash coming in and can not afford to pay staff, let alone top up to 80% of actual salary. They are just trying to get the business through so some people actually have jobs at the end of it. I do also think that the companies that can afford to top up salaries are possibly taking advantage of a government scheme that they do not really need which we will all pay for in the long term.

CaroleBaskin Sun 05-Apr-20 10:12:19

A lot of people here talking about their DHs employers rather than their own. Is that because the DH is the sole earner in the house or because you are still able to work from home/are a key worker?

We are very lucky to have two salaries. DP could cover all the bills on his salary, I couldn't. I'd be terrified if the one salary coming in now less.

This really puts things in perspective doesn't it. I am saving like mad at the minute and don't want to stop until I have a good amount as a safety nest. Silly that I didn't do it before.

OP’s posts: |
MadamNoo Sun 05-Apr-20 10:12:53

In my company furloughed staff are getting 100% pay. I have taken a 25% pay cut working full time. However the furloughed staff are the lower paid staff. I would rather be critical to he company and not in line to lose my job later.

NatashaAlianovaRomanova Sun 05-Apr-20 10:15:14

@Soontobe60 the £2,500 is the maximum gross on furlough - statutory deductions (tax,NI & pensions) will be deducted from this giving a take home of approx £1,950.

Longdistance Sun 05-Apr-20 10:20:37

My dh is still working but no furlough yet. He’s in construction but management. He didn’t stop last week with conference calls, orders, saved the company £200k with his wheeling and dealing. He did receive an email saying that there will be a few who will get furloughed. Who knows?!
Happy he still has a job as construction is always so unstable. I work in a school so ok for now. I’ve been furloughed but they’re paying the extra 20% on top.

Alanna1 Sun 05-Apr-20 10:21:57

I know loads of people who are being asked to do this. Companies need cash flow to survive.

StrawberryBlondeStar Sun 05-Apr-20 10:24:27

@Alanna1 agreed and the grants for the furlough scheme aren’t going to be paid to at least end of April. So companies still have to pay people and often with no clash flow.

thewinkingprawn Sun 05-Apr-20 10:27:34

@strawberryblondestar many companies are simply not going to be able to do April pay roll. Staff will be told to wait until the grant comes in. The reason they haven’t told staff that yet is that I think we all hope (even though we know it’s slim) that the government will sort this out before the end of the month. We managed to scrape it together for March but we won’t for April so people will have to wait. We have no choice (travel business).

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