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Calculating Average Pay for Zero-Hour Employee

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Employee on a zero hours contract works for 8 weeks, goes away to work a summer job for 16 weeks, (without being P45'd), then back in to work for the last 20 weeks.

For a CJRS claim, is the average over the last 20 weeks, or over the whole 44? It makes a big difference.

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By paul.benny
01st Apr 2020 16:43

You'll have to wait until detailed guidance is published. Anything else is opinion or speculation.

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By jcace
01st Apr 2020 18:36

"If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work."
As they started before the Summer and weren't treated as leaving at any point, it will be difficult to justify a later leaving date.

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By acceje
02nd Apr 2020 09:09

If I had to calculate before any further guidance has been issued I would divide the total earnings by the 28 weeks worked to find the weekly pay.

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By Carolynne
02nd Apr 2020 10:53

I know this is not relating directly with Furloughing. But didn't the new rules they have brought out for increasing the reference period for holiday pay as of April 20, say that if there were gaps you might have to go back up to 2 years to be able to select weeks where they did get paid until you hit enough weeks to work out an average pay for when they did get paid in the past?

It says '... the employer should use however many complete weeks of data they have...' I wonder if this would apply here?

There are lots of unknowns in the new legislation for furloughing and although this relates to holiday pay instead, I just wondered if they would expect us to use this method, in this instance? HMRC have tried their best, but for us agents, there are increasing numbers of questions that we are unable to answer.

The problem with waiting for the detailed guidance in about 3 weeks time when the portals are hopefully open, is that employees who are weekly paid need paying now and in certain instances, employers don't know what to base their payments on.

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