80% wage question....

[MrsEHB]

Can someone clarify or point me in the right direction please. DH works is not closing, even though it is non essential. DH's workmate is saying he's not going to go to work and believes he will get 80% of his wage? Is this true even though the business has not closed and he is still technically able to work?

His mate should be very careful. The 80% is a grant that employers can apply for to cover wages paid to staff - INSTEAD of laying them off. I.e. my workplace closed its doors today, and all staff have been sent home and will receive 80% of their pay. My employer will pay this and when the nuts and bolts of it are finalised they will be able to claim it back from the government.

The whole point of it that obviously many many businesses will have to close, hopefully it will not be permanent and the gov will cover the payroll costs (80%) to keep staff employed

...... if this applies to you, you should receive notification from your employer that they are placing you on 'Furlough leave'

It has to be the employers choice, because the job is (temporarily) not needed

If he decides himself he's not going in when his job is still there, he'll get sweet FA.

Er no he won’t be entitled to that. It’s for companies that have had to stop trading due to CV and may not be able to pay their employees. I have been home for over a week as I have no work to do because my employer cannot trade due to CV. This is for people whose jobs are at risk, not for people who can work for their employer but are choosing not to.

No, his employer will have to furlough him and it can only be done if there is no work for him to do. It's at his employer's discretion. I've been furloughed due to work drying up.

If there's still work for him and he chooses not to go in he will get nothing.

Mynah has been told today that if the business has to lay staff off, they will receive 80% wages. If staff have to self isolate, they will receive SSP. If staff just don't want to go in, they will get bugger all.

Thank you for the replies, I think I have a better understanding of it now. DH's boss gave them all the option of not coming in and receiving 80% pay, but seemed to think this pay came directly to employees from the government (though he admitted to not being too sure), so I'll definitely tell DH to tell friend to be wary!

The 80% will come from the employer and the employer will then be reimbursed by the government.

As yet all we have been told is that a new employer online portal will be set up where we have to declare employees' wages. They will need other info too but as yet we don't know what proof of entitlement etc will be needed.

Soontobe60 has the 3 options spot-on.

Lots of employers are going to try and profit from this measure by claiming the 80% even though their staff are still working. Lots are just too lazy to be bothered with the red tape and will lay people off without pay. Hopefully most will take it in the spirit is intended and use it to make sure their staff have money coming in to survive a period of no full wages.

So worried about this 80 percent business...
My partner is employed and works on a building site, the building site he works on has closed today I'm assuming because they can't get delivery's as lots of building merchants have shut and also the fact there very unhygienic places and impossible to keep the 2 metre distance, but the government are still saying that people can still work in construction.
His company are trying to apply for the grant but with government not officially closing them does this mean they won't be eligible?

Its not whether the government tell that industry to close

Its about whether the employer has a need for that worker in the crisis, so if the building site has closed and he isn't needed I'd say the 80% thing applies.

Its up to the employer to apply for it thought, employee cannot force them

They could find him work on another site for example

@tashakg89 no, my workplace is still open. We're an online trader so we are still taking orders. It's just that there are not enough orders coming through now to have all the staff in.

It's basically down to whether there is enough work for the employee or not. And his employer will have to pay him and then claim the money back, so a lot of employers aren't offering the 80% because they can't afford to pay it themselves first.

its not whether the government tell that industry to close

Have you seen this specifically stated anywhere official?
I haven't and the wording to date is very wishy washy and non specific.

I hope you are right but I wouldn't bet my last bog roll on it.

Does anybody else think this is all going to be so complicated and HMRC cant cope at the best of times that it is going to cost so much to do
Self employed even more complicated 3 years accounts is fine but what about those that have had their business for a shorter time ?
Would not a blanket amount for all those working be a lot easier

Can I just check the 80% is a grant? Dh's boss said it's actually a loan charged at 18% apr but I think he's getting it confused with the emergency loan the government are offering. DH is also a builder but thankfully(!) employed.

It's a grant, not a loan.

I am slightly nervous about it, I must admit. My employers are wonderful and I know they will do everything they can to sort it for me but not knowing how long it will take is a bit scary.

This is where it all gets confusing....my DH work is still open but only just. They are non essential but similar to a building trade so determined to stay open as long as possible. Except the majority of staff are indoors and able to stay 2 meters apart. My DH is outside on a public footpath and the amount of people 'exercising' past him is ridiculous. Adults, kids, all ignoring the 2 meter rule. He's bought it up with his boss but there's not alot he can do about it. DH just has to wait it out. He can't leave yet for his own health as he'd get nothing 😫

Exactly Rosie.

Add into the mix that financial year ends for employees next week.

How can they say pay can be 'backdated' within current RTI requirements - in which prior year amendments cant be made via usual reporting systems after 19th April.

It will be a shit show of great magnitude.

I'd so love to be wrong, and that HMRC get the portal up and running v soon with the grants made easily and freely to all who need them. Just cant see it happening though.