Holidays and Furlough

[Topcat58]

HI

Anyone have a view on what happens to holiday pay if an employee has been furloughed all year and hasn't taken or been paid holiday. If there's 28 days less New Year 2020 owing that's 27 days. Do we just pay him 27 days money on top of furlough money, assuming furlough goes on to the end of the year. Seems expensive.

And if the guy has effectively been on holiday all year, albeit at a lower rate then he surely doesn't need any more holidays does he?

Area seems very unclear and for business with problems due to the virus seems a bit much to give employees a big Xmas bonus!

Tony

 

[Newchodge]

It is absolutely clear. Employees accrue holiday entitlement throughout their employment. So they have the right to take holiday accrued during furlough.

Employers have the right to require that employees take annual leave on any specified date, for a specified period, as long as it is less than their holiday entitlement. The employer must give double the amount of holiday as notice prior to the first day of the holiday period. So if you want an employee to take 1 week off from 23 November, they must be told by 9 November.

During furlough the employer must pay holiday pay at 100% while claiming the relevant amount of furlough pay. So there is a cost to the employer.

If there's 28 days less New Year 2020 owing that's 27 days

Not sure what you mean by that. Are you forgetting Christmas Day and Boxing Day?

EDIT: The employee is entitled to carry forward any leave untaken due to Covid-19 for up to 2 years.

 

[Topcat58]

Oh yes forget them. So the option is pay on holiday at 100% in December and cannot claim furlough money - or carry it forward two years?

 

[Newchodge]

Oh yes forget them. So the option is pay on holiday at 100% in December and cannot claim furlough money - or carry it forward two years?

During furlough the employer must pay holiday pay at 100% while claiming the relevant amount of furlough pay. So there is a cost to the employer.

 

[Topcat58]

Thank you Cyndy. Much appreciated.

Tony