Parental leave entitlement whilst furloughed

Tuesday 28 April 2020

The Government has confirmed that employees who have been placed on furlough but were planning to take a period of paid parental leave should have the statutory pay to which they are entitled during such leave (e.g. 90% of normal pay during the first six weeks of maternity leave), calculated on the basis of their usual rate of pay (which applied prior to agreeing to be furloughed), rather than their furloughed rate of pay.

This will apply to:

• Maternity Pay;
• Paternity Pay;
• Shared Parental Pay;
• Parental Bereavement Pay; and
• Adoption Pay

This qualification to the Coronavirus Job Retention Scheme has been implemented so that employees who take family-related leave are not penalised if they have been furloughed by their employer. Business Minister Paul Scully said:

“Maternity and other forms of parental leave are pivotal times in people’s lives, and they should absolutely be protected from the impacts of COVID-19.

We are supporting workers and businesses in a way never seen before, in response to the unprecedented effects of COVID-19. These measures will ensure those on the Coronavirus Job Retention Scheme continue to receive the parental leave and pay they are entitled to.”

If you have any questions about calculating furlough pay, please email or call our Employment Law team today on 0113 207 0000.