Holiday Related Questions (Furlough)

Holiday Related Questions (Furlough)

How should employers treat Bank Holidays falling in the furlough period?

If employees usually take Bank Holidays as leave, the employer must top up the employee’s pay to their usual holiday pay rate or give them a day’s holiday in lieu.

Can employees carry forward holiday into the next leave year?

The Government has advised that employees who have not taken all of their statutory annual leave entitlement (up to 20 days) will be able to carry it over into the next two leave years. This applies where, on account of coronavirus, it is not reasonably practicable for employees to take some or all of the holiday to which the employee is entitled.

Can employees have holiday paid whilst on furlough leave?

Yes, employees should have holiday paid as normal. Employers can claim back the cost of an annual leave furlough day (subject to the cap of 80% of salary or £2,500 per month) and the employer must make up the difference between that and the employee’s normal pay.