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.