Salary gross under furlough - can employer reduce

Current salary say £40. Under furlough retention procedure, can the employer reduce the gross ?

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If a furloughed employee earns say £40K; the employer appears to be intending to reduce in order to make the company net cost after government contribution to nil. The company would then probably still have its workforce when this is all over. Would this be legal (subject to the individual's contract of employment ) ? In other words; is the government support also a cap for employers ? 

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RLI
By lionofludesch
24th Mar 2020 10:48

It's legal from the point of view of the Government's announcement. They specifically say you needn't make up the difference in their blurb.

Technically, it may fall foul of your contract. But, on the other hand, you could agree something with the employee. He's hardly likely to say no if the alternative is the Spanish Archer.

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By paul.benny
24th Mar 2020 12:02

mikescore wrote:
...The company would then probably still have its workforce when this is all over...

Or quite possibly not if the pain is being shared unequally.

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By tom123
24th Mar 2020 13:46

The circumstances of this OP are what is planned here for us.

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