Share this content
7

Furloughed workers and national minimum wage

Furloughed workers and national minimum wage - what if 80% leaves them under NMW

Didn't find your answer?

So a client has staff who are paid workers minimum wage, which is due to go up in April.  

The business has now completely closed its doors until we are out of this situation.  Two questions

1) Do they need to put the NMW up in April? (I assume yes)

2) If they choose not to top up the 80% to full wages, the employee would end up with less than NMW.  But they're not working at all, so does NMW apply?

Hope I haven't been thick and just missed it but I don't think I have seen this mentioned.

Replies (7)

Please login or register to join the discussion.

avatar
By SXGuy
23rd Mar 2020 20:12

If they pay 80% at 8632 back dated to 1st march then they will likely pay 80% at 9500 from April also.

Its up to the employer if they chose to make up the 20%.

If they don't and its less than min wage, are you seriously arguing over 20% free money when your getting 80% free?

Thanks (0)
Replying to SXGuy:
Giraffe
By Luke
23rd Mar 2020 23:06

Not arguing over anything?? Just asking a straightforward question.

Thanks (0)
Replying to SXGuy:
A Putey FACA
By Arthur Putey
24th Mar 2020 08:19

Unless the contract of employment provides for lay off and short time, as I understand it the employer has an obligation to pay the employee's fixed pay. The 80% scheme does not alter this, or employment rights (at the moment at least).

Thanks (0)
Replying to Arthur Putey:
avatar
By meadowsaw227
24th Mar 2020 10:30

There will be a lot of redundancies/sackings if that is the case .

Thanks (1)
JCACE
By jcace
23rd Mar 2020 21:00

I'm hoping the employer should be OK.
"A person who qualifies for the national minimum wage shall be remunerated by his employer in respect of his work in any pay reference period at a rate which is not less than the national minimum wage." NMW Act 1998 - see NMWM05010

Thanks (1)
avatar
By Martin Schneider
23rd Mar 2020 21:44

I am assuming that because furloughed workers must not do ANY work for the employer during that time, the concept of an hourly rate is irrelevant. i.e. they have done Zero hours of work.

Thanks (5)
Replying to Martin Schneider:
RLI
By lionofludesch
24th Mar 2020 06:19

Agree. The minimum wage will be £0.00.

Thanks (3)
Share this content

Related posts