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PLEASE READ... before you ask a question about 'furloughed' workers

Steve Bridger

Community members are opening a lot of discussions about aspects of furlough (something that rarely vexed us before). 

Understandably, it must feel like you're starting out on your HR careers for many of you. Everything we were used to now has to be seen through a new lens.

Please do browse through recent discussions - or use the search facility. 

We also have some FAQs...

Coronavirus Job Retention scheme and furlough

But of course, keep asking your questions.

UPDATE: 27th March - There is now a specific forum for posts about the Job retention scheme and furlough (member-only though).

  • 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