Furlough - pay it now or when cash received?

Include seperately on March payslips, or leave off?

Didn't find your answer?

A large HR firm just emailed saying employees must be paid furlough pay first, then it is recovered by employer after.

But my clients with no cash have drawn up mutual agreements that employees will be paid as soon as the employees receives the money. 

I cant find any guidance on this. So do I need to put their furlough pay on their March payslips or not? 

Are you showing it seperately on payslips, or just doing salaries as normal?

If I'm honest, I dont know what to do. 

Replies (9)

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By the_drookit_dug
27th Mar 2020 20:11

I would view the matters as separate. Payroll to be done as normal, albeit furloughed employees may only be on 80% of their normal salary, with the government grant claimed afterwards as a separate exercise.

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Replying to the_drookit_dug:
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By fellowcraft
27th Mar 2020 20:39

But what if you dont have any money to pay them?

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RLI
By lionofludesch
27th Mar 2020 23:13

I suspect that you'll be asked to confirm that the wages have been paid when you make your claim.

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A Putey FACA
By Arthur Putey
29th Mar 2020 08:15

Not paying them is breach of contract. But if they agreed to wait for some of their pay that might be ok, but as usual we have to wait for the guidance. If the employee didn't receive sufficient cash to live on they'd end up trying to claim benefits.

If an employer has no money to bridge the gap between payroll and the grant repayment it would seem their only option would be to make the employee redundant, unfortunately.

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Replying to Arthur Putey:
RLI
By lionofludesch
29th Mar 2020 08:32

Which would be helpful to everyone.

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Replying to Arthur Putey:
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By fellowcraft
29th Mar 2020 09:01

Hence why furlough ageeements should state furlough pay will be paid at time of recovery, but we will endeavour to pay you earlier if possible.

Really need proper guidance.

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Replying to Arthur Putey:
ALISK
By atleastisoundknowledgable...
29th Mar 2020 10:30

Arthur Putey wrote:

If an employer has no money to bridge the gap between payroll and the grant repayment it would seem their only option would be to make the employee redundant, unfortunately.

Or the CBILS which HMG have been pushing businesses towards.

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Replying to atleastisoundknowledgable...:
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By fellowcraft
29th Mar 2020 10:58

Unless you own your own home, in which case the banks are refusing most applications. Shambles

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Replying to fellowcraft:
ALISK
By atleastisoundknowledgable...
29th Mar 2020 20:12

fellowcraft wrote:

Unless you own your own home, in which case the banks are refusing most applications. Shambles

Really? That’s shocking.

Own own, or own with a mortgage?

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