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Home » News & Insights » Furlough Leave & Holiday Pay

Furlough Leave & Holiday Pay

Posted on 19th August 2020

Employees have the right to build up holiday entitlement while they are on furlough leave – because of coronavirus. They can also take leave while on furlough.

Bank holidays

If a furloughed worker usually takes a bank holiday as paid leave, they can agree with their employer to take it as normal or take it at a later date.

An employer must give a furloughed worker at least 2 days’ notice if they want them to take a bank holiday as annual leave unless the worker’s employment contract says something different. The employer must tell the worker at least one day in advance of giving 2 days’ notice.

Holiday pay

An employer can continue to claim a grant under the Coronavirus Job Retention Scheme when a furloughed worker takes annual leave. A furloughed worker’s holiday pay must be calculated as normal. 

If the holiday pay turns out to be more than the worker is paid while on furlough, the employer must pay the difference.

If you need assistance with your payroll, please call MJB Avanti 01473 558866 to discuss how we can help you to streamline your processes and meet your obligations.

Source: Informanagement

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Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

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