Furloughed employees at British engineering business Rolls-Royce have been asked to have their annual leave reduced by four days in return for receiving full pay.
The reduction would allow Rolls-Royce to top up the government's job retention scheme by 20%, ensuring its furloughed employees receive 100% of their salary. Under the government’s job retention scheme, employees who are furloughed receive 80% of their wages, up to a maximum of £2,500 per month.
If employees do not wish to reduce their annual leave, the organisation is exploring alternative options to ensure staff receive full pay.
Additionally, senior managers and executive teams have seen their salaries reduced by 20%; comprising a 10% salary reduction and a 10% deferral for the remainder of the year.
Bonuses normally paid to the chief financial officer and chief executive have been put on hold.
Through employee pay cuts, Rolls-Royce has reduced salary expenditure across the organisation by 10%.
Warren East, chief executive at Rolls-Royce, said: “We find ourselves in unprecedented times, both as a company and as a key player in vital power markets across the world. Our priority is to do everything we can to safeguard the lives and livelihoods of our people and to play our part in helping our customers, partners and communities. We are taking significant measures to strengthen the operational and financial resilience of our business.
"I would like to thank all our 52,000 colleagues worldwide for their support, dedication and hard work at this time when difficult decisions are being made.”
