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Furlough Payments

Rates of pay for returning some employees full time, leaving other employees on furlough

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I have a client who is bringing back some employees from furlough.  Whilst on furlough they were claiming 80% average of last year's pay as their monthly salaries varied.  If they bring back some employees they will be on basic.  Can anyone advise if the employees remaining on furlough can be changed to 80% basic or if it should remain on average pay?  It doesn't seem fair that employees being brought back may be on a lower wage.  I would guess that we can't change the existing arrangement but has anyone else come accross same scenario?  Thank you in anticipation!

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By Matrix
29th Jun 2020 12:55

For those on furlough, you can pay them whatever is set out in their contract provided it is at least as much as the claim received. The CJRS claim relating to the period on furlough is (80% of) the higher of the equivalent month in 2019 and the average 2019-20 pay. The two are independent from each other.

For those not on furlough, this is an HR/Legal issue for the employer. It is not an accounting issue in my view.

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