Furloughed workers

[Coquohvan]

Can an employer sack you after they furloughed you. A friend has been told he’s getting furloughed and asked to come in when they have jobs and not pay them till this is all over?

@Whatsthesmell & HasaDigaEebowai

Thank you both so much, makes it so much clearer for them. I will direct them to this thread it will given them piece of mind for 3 weeks at least. Hopefully more info will come to light and make things so much clearer.

They are both anxious and worried, as are most of us during this current crisis.

I have noted this thread to pick up further posts.

Thank you again.

Glad to have been off help, good luck to your friends

He was contacted by email. As from tomorrow he’s not to go into work As being put on furlough.

Does the employer work out the average monthly pay over the past year, or the same month last year to reach the 80% furlough pay.

His employer is talking about paying them the bare contracted hrs of 40 p/w

This employer is really not making things clear and has a cavalier attitude to it all.

His employer is talking about paying them the bare contracted hrs of 40 p/w

For full time and part time employees the actual salary before tax excluding fees, commission and bonus is used to calculate the furlough pay. The treatment of overtime is unclear. However, this may fall under the "employee whose pay varies" rules, in which case the employer can claim the higher of the same month's earnings from last year or the average monthly earnings from the 2019/20 tax year.

Thank you for you quick response.

I will alert him to your answer. He saw the ‘pay varies’ section on the gov site but wondered if it was discretionary by the employer. So sad to see them anxious and unsure.

Can I ask please the employment solicitors: if one agrees to a furlough, but then 3 months down the road the employer says we need to make you redundant anyway, which salary would apply for the reason of the work notice: the original salary or the furlough salary (up to 2,500 a month)? In other words, by agreeing to a furlough, do you agree to a variation in your employment terms, and therefore from now on the furlough salary applies? Or is it that if they make you redundant after the furlough, you are still under the original terms of your contract, I.e. higher pay? Would appreciate your input. Many thanks!

You wouldn't be made redundant on your furloughed salary. When you are furloughed your employer doesn't adjust your salary. They may only pay ypu 80 percent of your salary but the amount you officially earn hasn't changed.

It's your employer that can only claim back 2500. They still have to pay you at least 80 of what you earn.

&tonyaster - Are you sure that’s correct? the employer still has to pay at least 80% of what you earn?
My understanding is different - if you are on furlough, all you get is 80% of what you earn, up to a limit of 2,500 a month. So in effect, to get the max grant one needs to be on an annual salary of £37,500. But if one earns more than that, the employer can choose (not necessarily has to) top up to your usual monthly salary. In other words, the employer can choose to top up wages to 100% but is not obliged to do so.

The employer pays you as normal - they can choose to keep your salary at 100 percent or, more likely, you will receive 80 percent. The employer then claims this back from the govt at a maximum of 2500. So if 80 of your normal salary is 2600, then the employer pays you this but can only claim back 2500.

OK, thanks @tonyaster!

I wasn’t aware that the 80% was applied to what the employers should pay. My understanding was that the employer is allowed to claim a grant of up to 80% of your wage (up to £2.5k cap), not that the employer still needs to pay 80% of what you earn. If the salary is higher than this cap, then the employer can choose to top up to 50%, 75% or indeed 100% if that’s what they agree with you.
Happy to stand corrected though!

Sorry, checking with dh..employer can decide to onky pay you 2500 if that is lower than 80 percent of your salary, but encouraged to pay more

My friends employer has said there paying 80 % Of their basic wage. Not an average over the previous years monthly pay or the pay they received in March ‘19
The employer is saying the can’t afford to pay the average pay till government pays them in April!!

It’s a blow for them.