JRS, salaried staff and overtime

When looking at the reference pay month for salaried staff do we include overtime?

Didn't find your answer?

Morning!

Just when I thought I had ironed out all of my niggles and have my calculations working I have found another..

For a salaried member of staff who regularly works overtime should this be included to the extent that overtime was worked within the last payroll prior to 19.03.2020?

As ever grateful for any thoughts.

Replies (5)

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JCACE
By jcace
28th Apr 2020 16:43

If their pay normally varies, then I would suggest that their furlough pay is calculated in line with variable pay.

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By lisa65
28th Apr 2020 19:03

https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim...

What to include when calculating wages

The amount you should use when calculating 80% of your employees’ wages is regular payments you are (contractually) obliged to make, including:

regular wages you pay to employees
non-discretionary overtime (guaranteed overtime set out in the employee's contract)
non-discretionary fees
non-discretionary commission payments
piece rate payments

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By gillybean04
28th Apr 2020 21:25

7.4 In paragraph 7.3 “regular” in relation to salary or wages means so much of the amount of
the salary or wages as-
(a) cannot vary according to any of the relevant matters described in paragraph 7.5
except where the variation in the amount arises as described in paragraph 7.4(d),
(b) is not conditional on any matter,
(c) is not a benefit of any other kind, and
(d) arises from a legally enforceable agreement, understanding, scheme, transaction or
series of transactions.

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Replying to gillybean04:
By SteveHa
29th Apr 2020 08:15

The problem with the legislation as written is that 7.4(b) catches literally everything. Even basic pay is caught, since that is generally conditional on working.

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Replying to SteveHa:
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By gillybean04
29th Apr 2020 17:30

I agree.

I know they're implemented it in record time. But it's had catastrophe written all over it since they announced it. The direction just cemented my view.

But I think (pure conjecture) they mean such as a higher rate of pay or bonus being payable upon reaching a certain target.

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