furlough over christmas

how do I calculate furlough over christmas period

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I run payrolls for a number of OMBs. some have been affected by Covid and are doing reduced hours. Historically their pay had been £700 pm (ish) with dividends.  I have been claiming flexi furlough for them. They work out the hours they worked in the pervious month. I calculate the hours they should have worked if the world was more normal (8h pd) and claim on this basis. I am confused what to do about the xmas bank holidays though, and the week between xmas and NY. They probably wouldn't have worked these days so do I exclude them from the usual working hours? Holiday pay has not been paid as an extra before. Thanks and here's hoping for a better 2021.

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JCACE
By jcace
20th Dec 2020 23:47

There are rules that set out how to calculate furlough pay for both fixed and variable pay employees. You just need to follow the rules.
" Employees can take holiday whilst on furlough. If they are flexibly furloughed then any hours taken as holiday during the claim period should be counted as furloughed hours rather than working hours. You should not put your employees on furlough for a period just because they are on holiday for that period. This means that employees should only be placed on furlough because your operations have been affected by coronavirus (COVID-19) and not just because they are on paid leave. This applies equally during any peak periods in late December and early January.

Working Time Regulations (WTR) require holiday pay to be paid at the employee’s normal rate of pay or, where the rate of pay varies, calculated on the basis of the average pay received by the employee in the last 52 working weeks (twelve weeks in Northern Ireland). Therefore, if a furloughed employee takes holiday, the employer should pay their usual holiday pay in accordance with the Working Time Regulations.

Employers will be obliged to pay employees who are on holiday additional amounts over the grant, though will have the flexibility to restrict when leave can be taken if there is a business need and the correct notice is given. This applies for both the furlough period and the recovery period.

If an employee usually works bank holidays then the employer can agree that this is included in the grant payment. If the employee usually takes the bank holiday as leave then the employer would either have to top up their usual holiday pay, or give the employee a day of holiday in lieu."

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Replying to jcace:
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By the_drookit_dug
21st Dec 2020 11:01

I see the wording of the guidance has changed. It previously stated:

"You can only place employees on furlough if coronavirus (COVID-19) is affecting your operations. You should not place employees on furlough just because:
- they are going to be on paid leave
- you usually do less business over the festive period"

No longer any mention of the festive period specifically. I wonder if they realised they were confusing folk, who quite rightly were asking how to you prove the difference between a normal seasonal slowdown and a Covid related slowdown.

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Routemaster image
By tom123
21st Dec 2020 10:34

I am treating the closed period as 'working' hours, and indeed 'worked' hours - we are closed over Christmas and always have done.

If you exclude the hours from the denominator, then, the furlough fraction will be greater than it should be.

That differs from earlier in December where some staff have taken holiday whilst on furlough.

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Parker Whitwood Accountancy Firm in Manchester
By Parker Whitwood Limited
21st Dec 2020 16:37

Try our flexi-furlough calculator tool on our website - you can download it for free, no details need to be given ... https://www.parkerwhitwood.co.uk/resources/

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Replying to Parker Whitwood Limited:
A Putey FACA
By Arthur Putey
22nd Dec 2020 09:39

What answer does it give to the question posed here? 42?

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