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Do furlough payments count towards NMW?

Employer getting 80% of normal salary

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Employee was taken on mid-March for 160 hours per month @ £9 per hour.

They missed the cutoff for CJRS, however employer agreed to keep them on at 80% of their normal wage, on the basis that they do a couple of hours a day - the rest of the time furloughed, albeit without claiming anything back from the government.

I'm wondering if for NMW purposes the £1,152 per month can be considered remuneration for the actual 50 hours they worked (therefore above NMW), or whether they were effectively paid £7.20 per hour and a self-correction payment is required for the difference to bring it up to £8.72?

Heaven knows what usual hours / usual pay figures should be used now he's eligible for CJRS...

 

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By paul.benny
21st Nov 2020 12:23

Presumably nothing is actually documented here beyond the original employment contract, Looks to me like the employer has effectively paid 50 hours at £9 and the balance is a self-funded furlough payment. There is no obligation to pay minimum wage for hours not worked (apart from holiday etc).

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By the_drookit_dug
21st Nov 2020 13:21

How did you guess?!! I think the employee signed the original furlough letter issued to all employees, but after I advised the employer that they couldn't claim they verbally agreed to be furloughed but also work a few hours.

This article (albeit covering paid training: https://www.litrg.org.uk/latest-news/news/200414-any-questions-will-my-f...) seems to agree with your comment.

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