Reduction to 80% pay whilst still working from home

[Mumtwo2three3]

Is my employer being unreasonable to tell their staff they will be reducing to 80% salary for at least 3 months whilst still working full time from home?
Half of my colleagues have been placed on furloughed leave and will receive 80% salary as this will be claimed back from government but while they are furloughed and won’t actually be working myself and colleagues are expected to work 37hours a week from home but only receive 80% of our salary for next 3 months at least. Is this unreasonable and even legal?

Ah, well, it seems as if this is a sneaky move by employers to have their cake and eat it.

I wonder how widespread it is?

Can MumsnetHQ do a poll maybe?

It’s pretty shit for some of my colleagues who’ve taken on mortgages and loans thinking they’d be earning say £3,000 a month and now they’re still expected to work but for 20% less.

They are essentially asking you to take a pay cut. Unless that's already in your contract, then it's up to you if you agree to it or not. You might - if there is a risk of the business going under otherwise. There is also a risk that they find a way to make you unemployed if you don't. So sorry that you are in this horrible situation.

My employer is yet to put us on furlough however I believe this will be happening. They have also requested that we book annual leave so that we only have 50% left by a certain time. They send out some
Correspondence the other day saying they will only be paying the 80% for our annual leave too, surely this isn't fair?

That’s a new one @chickennuggets2

How was the letter/e-mail worded?

We’ve heard nothing yet about holidays (full or reduced amount).

'Your annual leave hours taken during furlough will be paid at the furloughed rate of 80%'
I would of thought that they would have to authorise our full pay for our holidays, especially if they have been booked prior to being furloughed

Ah, so, it’s applicable to furloughed staff. How about non-furloughed staff?

They havnt said about that actually, but we have no option to continue to work due to the job type so I don't think we will have an option whether were furloughed or not

As if things weren't bad enough!

It's all just so stressful for everyone

The usual rules apply. Your employer can only cut your pay with your agreement and must pay at least minimum wage.

In a situation where much of your pay is considered bonus or commission, they can cut that without specific agreement.

And they can, in certain situations, dismiss you or make you redundant if you refuse to accept the pay cut. Previous employment tribunal cases have held that if the company is in financial difficulties then dismissing employees who won't take a pay cut is fair.

So if the company can justify a 20% cut for their working employees as necessary then they can do it.

They have to ask you to agree to a pay cut, they can’t just impose it. You can choose to refuse but you could then be made redundant.

But if the company has seen its revenues drop, this might be the only way they can ensure there is still a company and jobs to come back to when this is all over. Accepting a temporary cut might be the lesser of two evils.

They have misunderstood when and how you furlough a person.

Take the letter and get advice from ACAS or whoever is open.

Don't start any polls or petitions until you understand the situation.

My interpretation of the OP's company is:

Staff not required to work are being furloughed
Staff required to work are being asked to take a 20% pay cut. The company will continue to pay this, no govt support.

In both cases, employees have to agree (unless there is already an explicit term in the contract of employment) . The alternative is probably redundancy.

Just about every company is cutting costs in a bid to keep the cash flow intact over this period where there is no trade. The alternative is that they close down - and many will still have to do that.

Hmm... snackarella can you advise?

I have been furloughed. Employer has confirmed they will pay us 100% for March and 80% for April and May.

I received an email from my accountant stating that unless there is a specific clause in my contract that states otherwise, my employer must pay 100% of my salary, 80% of which will be refunded by the GOV.

Is this correct?

Identical situation so im following... seems unfair doesnt it. Better then redundancy though ..maybe?