Furlough & cashflow

[Comefromaway]

I run payroll for a construction company where all the major projects have come to a halt. The only work we have at the moment is essential/emergency call outs in key worker buildings.

So about 6 of the 30 strong work force are working the rest have been furloughed. For the couple of weeks leading up to furlough work had dropped off so they were only being paid for a standard 38 hour week. However last summer there was a huge job on that involved a lot of overtime at double rate so their average pay over 12 months works out at a lot more than a normal working week.

The company doesn't have the reserves to pay 80% of this amount to them but it is able to pay 80% of a standard 38 hour week for the next few weeks until the grant comes through (the portal will be ready end of April I believe.)

Can the company choose to furlough only based on a 38 hour week or do they have to base it on the higher 12 month average amount? There is a lay off clause in the contracts.

I was on a webinar this morning where the employment lawyer had said the calculation should be based on usual pay so would not include overtime unless that overtime was contractual.

Is that where an employee is salaried though, rather than hourly paid.

Our standard working week is 38 hours but few ever work that. more often than not there are call outs and weekend working (if work has to be done when a site is not operational for example) or travelling time if they have to travel to a site more than 40 miles away from our office.