SSP Following furlough
Client employed and normally would have been entitled to SSP as earnings over £120pw.
Furlough for relevant period has been less than £120.
Do they lose their entitlement to SSP as a result of being furloughed or does normal contractual wage apply.
I understand that for redundancy you do not lose your statutory right because of furlough.. Should this not apply to SSP too?
Hi Carole did you find out the answer to this one? I have exactly the same potential issue.
I can’t find anything to say that normal pay will used to assess entitlement to SSP - I’ll send an email up to DWP via stakeholders to see if I can get any confirmation…
I see that redundancy entitlement is going to be based on usual pay rather than furlough pay from Friday https://www.theguardian.com/uk-news/2020/jul/30/new-law-will-ensure-furloughed-workers
No indication in this article re SSP though
I’ll leave someone who knows about employment law to interpret
No mention of SSP here - all about redundancy and dismissal -
These Regulations set out how a week’s pay is to be calculated in the case of an employee who has been furloughed under the Coronavirus Job Retention Scheme, for the purposes of calculating:
a)any statutory remuneration for time off to look for employment or arrange training;
b)any statutory notice payment;
c)any statutory sum resulting from a failure to provide a written statement of reasons for dismissal;
d)any statutory sum resulting from a failure to comply with an order for reinstatement or re-engagement;
e)any statutory compensation for unfair dismissal; and
f)any statutory redundancy payment,
to which in each case they are entitled. In such a case the Regulations also set out how a week’s pay is to be calculated for the purpose of deciding whether an employee is taken to be on short-time for statutory purposes.
Not sure how relevant this may be but this is an extract from the employer’s guide to calculating SSP on gov.uk:
Overpaid or underpaid earnings during the relevant period
“AWE are always based on all earnings actually paid to the employee within the relevant period, regardless of any over or underpaid wages in that period.
When over or under payments of wages happen within the relevant period, treat them in the same way as all other earnings paid in that period for working out AWE.
You should use the agreed earnings to work out an employee’s AWE if both:
•the wrong earnings have been paid and there is a disadvantage for you or your employee
•there is written evidence of an agreement between you and your employee of what the actual earnings that should have been paid were”
So arguably a furloughed employee should usually receive £X but instead receives £Y amount. There is an agreement between the employer and employee to underpay the lower amount in the expectation that the actual amount of £X will be paid later. Not sure if this would constitute “agreed earnings” within the guidance, but does appear to give some hope, and would largely depend on their being a written agreement, so I wouldn’t hang too many hats on it. Worth a shot though, I guess.