The 80% Government backed wage

[KZNSeagull]

Which is fine, people in travel, hospitality etc should be near the top of the list.

But the impact of this is much wider, almost every business will be affected. So what happens if they want to lay off staff? If I’m employed by a bank, a garage or a corner shop and I’m laid off do I still get 80% of my salary?

Well no I don't think so, but given that they will pay no business rates, have 80% of their staff bill paid and not have to pay out VAT for a while plus the other grants/loans that they can apply for, I would question why they would need to lay off staff.

 

[Weststander]

Which is fine, people in travel, hospitality etc should be near the top of the list.

But the impact of this is much wider, almost every business will be affected. So what happens if they want to lay off staff? If I’m employed by a bank, a garage or a corner shop and I’m laid off do I still get 80% of my salary?

Not answering your social security question, but any business laying off staff now is either run by dimwits or callous opportunists looking to get rid of people the bosses didn’t like. It now costs them zero to retain staff on 80% pay.

 

[KZNSeagull]

Not answering your social security question, but any business laying off staff now is either run by dimwits or callous opportunists looking to get rid of people the bosses didn’t like. It now costs them zero to retain staff on 80% pay.

I would suggest that with this massive amount of public money being used in this way (correctly), any company that does lay off staff should be investigated and the directors potentially held to account for misuse of public money.

 

[Weststander]

I would suggest that with this massive amount of public money being used in this way (correctly), any company that does lay off staff should be investigated and the directors potentially held to account for misuse of public money.

There are definitely some small business owners who’ll furtively use this to settle old scores .... I’ve personally known the type!

 

[clarkey]

Which is fine, people in travel, hospitality etc should be near the top of the list.

But the impact of this is much wider, almost every business will be affected. So what happens if they want to lay off staff? If I’m employed by a bank, a garage or a corner shop and I’m laid off do I still get 80% of my salary?

Every business is eligible. You don’t get it you’re laid off. This is to encourage businesses not to fire people but to furlough them in the short term , to give them their pay even if they aren’t needed in the business, and a job to come back to further down the line.

 

[clarkey]

Not answering your social security question, but any business laying off staff now is either run by dimwits or callous opportunists looking to get rid of people the bosses didn’t like. It now costs them zero to retain staff on 80% pay.

It’s not quite that simple. If they have several months now with not a single penny of revenue, plus rent/utilities, head office costs etc that’s a huge black hole they have to recoup when this is over. They are likely to need to operate on a lower cost base when this is over to get that back.

 

[Beach Hut]

Not answering your social security question, but any business laying off staff now is either run by dimwits or callous opportunists looking to get rid of people the bosses didn’t like. It now costs them zero to retain staff on 80% pay.

Sadly short term thinking will cost many companies long term losses and probable closure

 

[Weststander]

It’s not quite that simple. If they have several months now with not a single penny of revenue, plus rent/utilities, head office costs etc that’s a huge black hole they have to recoup when this is over. They are likely to need to operate on a lower cost base when this is over to get that back.

It is that simple. They can retain all their staff on 80% pay, at absolutely zero cost to the business.

No one’s saying that overnight in 6, 12 or 18 months time, businesses will be as they were.

There is no benefit whatsoever from dismissing staff at this moment. Those decisions can be made well into the future.



Incidentally, the vast majority of business are not closing for a while with zero revenue. We know that staff by the million are now working from home, so there is trade to warrant that activity.

Pubs, restaurants, clubs, some sports and all things hospitality will have zero income. The government is providing additional financial assistance to the hospitality sector.

 

[Beach Hut]

It is that simple. They can retain all their staff on 80% pay, at absolutely zero cost to the business.

No one’s saying that overnight in 6, 12 or 18 months time, businesses will be as they were.

There is no benefit whatsoever from dismissing staff at this moment. Those decisions can be made well into the future.



Incidentally, the vast majority of business are not closing for a while with zero revenue. We know that staff by the million are now working from home, so there is trade to warrant that activity.

Pubs, restaurants, clubs, some sports and all things hospitality will have zero income. The government is providing additional financial assistance to the hospitality sector.

It certainly is that simple however I can cast iron guarantee that ****wit that runs Wetherspoons will do something worse

 

[Weststander]

It certainly is that simple however I can cast iron guarantee that ****wit that runs Wetherspoons will do something worse

As a large business with all the publicity that comes with that, he’d be jumped on I hope by the media and government.

I’d put sly O’Leary and Ryanair in that category. He tried every trick in the book not to give pilots a market salary a couple of years back ... time for him to oust the trouble makers, then recruit when it’s an employers market when flights resume?

 

[clarkey]

It is that simple. They can retain all their staff on 80% pay, at absolutely zero cost to the business.

No one’s saying that overnight in 6, 12 or 18 months time, businesses will be as they were.

There is no benefit whatsoever from dismissing staff at this moment. Those decisions can be made well into the future.



Incidentally, the vast majority of business are not closing for a while with zero revenue. We know that staff by the million are now working from home, so there is trade to warrant that activity.

Pubs, restaurants, clubs, some sports and all things hospitality will have zero income. The government is providing additional financial assistance to the hospitality sector.

After a few beers (at home...), I was strongly of the opinion employers would have to top up the remaining portion, leaving them with potentially large bills to pay. Having gone over it again, it doesn’t seem to be specified either way, but I’m now leaning the other way, that no top up is required.

 

[Thunder Bolt]

Does anyone know if the wage will be 80% Government and 20% company or just 80% Government? I am now in the position as from 8:00pm tonight my company have been forced to close for at least 6 weeks and need to know if I should contact my mortgage provider. Cheers.

Mortgage lenders are giving borrowers a mortgage holiday when asked, so contact them anyway.

 

[The Andy Naylor Fan Club]

Mortgage lenders are giving borrowers a mortgage holiday when asked, so contact them anyway.

Thanks @Thunderbolt. I was aware of the mortgage holiday offer from the bank but I don't want to activate it if my company is to make up the 20%. I posed the question because we have a mortgage payment due in 2 weeks and wanted to know if all companies were obliged to make up the 20%. It seems that companies can choose whether or not they pay, we'll see soon just how much my company appreciates its staff!

 

[Wrong-Direction]

Still cant get my head around the self employed living off £94 a week whilst everyone else gets at least 80% full pay

Sent from my SM-A600FN using Tapatalk