Furlough Holiday entitlement position clarified
The government has finally issued guidance clarifying the positing concerning holiday entitlement and pay during the coronavirus lockdown and furlough arrangements.
The much awaited guidance addresses how employers can comply with their obligations in respect of holidays and pay both for employees who remain in work during this period and those who are furloughed as part of the Coronavirus Job Retention Scheme (Scheme).
The key points of clarification to note are:
- Furloughed workers continue to accrue statutory holiday entitlement;
- Furloughed workers can take holiday without breaking a period of furlough;
- Employers can make workers take holiday and cancel pre-booked holiday, provided they give the worker the requisite notice;
- Where a bank holiday falls within a period of furlough and the worker would usually have had taken it as annual leave, the bank holiday can either be taken as annual leave or deferred until a later date;
- Furloughed workers who take holiday are entitled to their usual rate of pay for the holiday they take. Employers can claim 80% of this pay from the Scheme but must make up the difference;
- Workers will be permitted to carry forward up to 4 weeks’ holiday entitlement into the following two holiday years if it has not been reasonably practicable for them to take it due to coronavirus; and
- Employers must still facilitate workers to take their annual leave and not replace it with a payment in lieu.
The new guidance has come as a welcome clarification to employers who have been struggling to address the issue of holiday entitlement during furlough (especially given the recent spate of bank holidays). This is further compulsory reading for employers, HR managers and payroll teams.
If you have any questions about holiday on furlough, please email or call our Employment Law team today on 0113 207 0000.
Partner and Head of Employment
Employment Law
PKelly@LawBlacks.com
0113 227 9249
@PaulLawBlacks
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Paul Kelly
