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Note for Employers: Holiday Entitlement during Furlough

Note for Employers: Holiday Entitlement during Furlough

03 Dec 2020

We are being asked by our Employer clients whether their employees are entitled to take holiday during any period of furlough and the answer is that employees on furlough can take holiday without disrupting their furlough under the Government’s Coronavirus Job Retention Scheme.

Employees should be paid their usual holiday pay for any annual leave taken during furlough (ie. holiday pay based on pre-furlough normal remuneration). Where this rate is above the pay that employees are receiving while on furlough, employers must pay employees the difference which means that the grant under the Scheme should be topped-up by an employer for any periods of annual leave taken.

However, as taking holiday does not break the furlough period, employers can continue to claim the 80% grant from the Government under The Coronavirus Job Retention Scheme to cover most of the cost of the holiday pay paid.

Employers may be able to restrict when holiday leave is taken provided they comply with the required notice periods and any agreement they have with their employees about this.

The Working Time (Coronavirus) (Amendment) Regulations 2020 allow employees to carry part of their annual leave into the next two leave years where it was not reasonably practicable for employees to take it owing to the effect of coronavirus.

More useful information can be found using the following link to the Government’s guidance on Holiday Entitlement and Pay During Coronavirus (COVID-19: https://www.gov.uk/guidance/holiday-entitlement-and-pay-during-coronavirus-covid-19)

This blog was prepared on 19 May 2020. It is not intended to be advice and should not be relied upon as such.

If you require any specific advice or assistance about employment law or any of the issues referred to in this blog, please contact our expert employment solicitor, Yvonne Addy by telephone on 020 7486 5131 by email yvonne.addy@mwh-law.co.uk or make an online enquiry here.

In every case that we handle, we are committed to the very highest levels of client care