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Furloughing Employees

Home Messageboards Freelance and Entrepreneur’s Forum Furloughing Employees

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  • #150903
    AvatarMark
    Participant

    I am furloughing my employees but some are on National Minimum Wage. As the rate for NMW went up on 1st April, which figure do I use to work out their 80%? Would it be the March figure or the April figure?

    #150927
    Annie ThorpeAnnie Thorpe
    Keymaster

    Hi Mark,

    NMW doesn’t apply to furloughed workers, unless they are still undertaking training while furloughed (but they can’t do anything that provides a direct service to your business). So, 80% of their wage may take them below NMW but this is legal.

    You’ll need to add separate pay periods together when you apply for the scheme. So, NMW workers furloughed in March will have one pay period on the old rate, and subsequent pay periods from April on the new rate.

    Hope that helps!

     

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