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Furloughing Employees

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April 20, 2020 at 21:21 #150903

Mark
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?

April 21, 2020 at 12:03 #150927

Annie
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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