In reply to Jacqueline:

Oh Jacqueline! You mean not all the residents of CIPD HQ are Wombles? I am distraught! there was I imagining the Wimbledon team as a friendly bunch of furry persons all happily beavering (sorry: "Wombling") away for we members! I thought Steve, Johanna and the other Peter C were just the Human front-office guys (Wombles normally being shy creatures, difficult to catch sight of in the open)... Oh well. Another illusion destroyed..... :-(

....But on a more serious (or even vaguely sensible) note:

I too am glad that we still have the Community being monitored and Mentored by Steve. It is much appreciated and pulling the common Covid-threads together has certainly helped make it easier to answer questions and gain focus on some of the less-clearly defined issues the new rules (and more politically "hazy" initiatives) are throwing up.

Much appreciated, Steve and all still working, whether from home or the Wimbledon Womble-den.

In reply to Peter:

Much appreciated, Peter.

Thread-weaving a work in progress...

Have a question about furlough with regards to an employee who gets paid on commission basis only, no basic salary. Would they still qualify

Would appreciate any thoughts on furloughing an intern who is on slightly above NMW. We are extending their FT contract as they're doing some project work for us but at the moment this work is not necessarily "essential" at the current time due to operational requirements. I'm not sure if we can furlough them as potentially 80% of their salary would drop them below NMW? Any advice appreciated as I cannot focus my thoughts at the moment to come up with level headed answer.

In reply to Gemma:

The NMW is largely irrelevant around furlough. As they are not working the NMW doesn't apply.

There is a debate over if NMW increases from 1/4 need to apply

In reply to Keith:

Like many of the current measures the furlough "subsidy" falls outside (or across) many of the usual and long-established "structures" of statute and contract.

In normal circumstances "wages" are specifically a reward given in exchange for work carried out under a contract, so other payments, like pay "in lieu" of wages not earned by no work being offered during notice, are NOT wages. (in the case of PILON they are liquidated damages for the breach of contract in not offering work). NMW applies (by its very name) to the exchange of "payment for work".

The "furlough subsidy" however, is clearly not a payment "for work". In fact it has now specifically been made a payment for the employee doing NO work for the employer (not even during the 20% of time not being paid for), so it is NOT "wages" but a different "form of payment" (outside the usual structures around the employment contract, or even non-working benefit payments) and NMW will therefore not apply to the net subsidy paid.....Although for the employer the mechanisms for paying it (including deductions) remain those of paying "wages".

....In short it is another response to the unprecedented circumstances we have found ourselves in, necessary to (at least temporarily) keep people both paid and employed, with little relevance to established procedures: A necessity we now need to deal with step by step, working out how to apply the guidance by HMG and HMRC as they work out how to make the proposed solutions apply and let us know.

...As and when they do.... :-)

There will be mistakes: There will be challenges, but hopefully where these are made in genuine error, or misunderstanding in good faith, there will also be a degree of tolerance and leniency!

P

In reply to Rochella:

Welcome to the Communities Rochella.

The Gov,UK source for payment information is here:
www.gov.uk/.../claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
However you might note that the employee's "usual pay" is the basis for calculation, but lower down (in what you can claim) the scheme specifically excludes "bonus". which introduces some ambivalence.

In your case, if the commission is specifically that, i.e. an agreed percentage of all sales the employee makes as their sole payment for their work, and not a variable "add on" to sales, then it would (as I read it) be acceptable for calculation of furlough pay.

That said, however, the question might arise as to the status of the "employee" if they are working for commission alone, with no NMW for activity on your behalf not related to sales (e.g. attending meetings or training)....But let's leave that for another day.... :-)

P

Very useful, thank you.