The Impact the National Minimum Wage Rise has on Furloughed Employees Mar 31, 2021Views: 2168
The National Minimum Wage (NMW) is the minimum pay per hour most employees are entitled to by law. An employee's age and if they are an apprentice will determine the rate they will receive. This is very topical at the moment as new minimum wage rateswill come into effect on 1st April 2021 and the furlough scheme has been extended until 30 September 2021.
Employees are only entitled to the National Living Wage or National Minimum Wage for the hours they are working. Therefore, where furloughed staff are paid 80% of their wages, this might mean they get less than the minimum wage, and this will be the second time that furloughed workers will be affected by this.
However, employers are required to pay employee's their normal wages for any hours worked during furlough, and this also includes time spent during work-related training. This means that employees are entitled to the appropriate minimum wage rate for the hours they are working or doing work-related training under minimum wage rules.
Where the pay is less than the appropriate minimum wage entitlement, the employer will need to pay additional amounts to ensure at least the appropriate minimum wage is paid for both working time and 100% of the training time whilst furloughed.
Keep up-to-date and join the BrightPay team for our upcoming COVID-19 webinar on Tuesday 20th April at 10.30 am where we examine how the furlough scheme rules are going to change between now and September and what these changes mean for your business. We will also demonstrate how BrightPay payroll software caters for CJRS and furlough. This webinar is free to attend for all employers and payroll bureaus.
If you are unable to attend the webinar at the specified time, simply register and we will send you the recording afterwards.
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