Holiday for Furloughed Staff
If you have employees on Furlough through the COVID-19 crisis, they will be accruing holiday whilst they are on Furlough. This is causing concern for many employers as when things return to ‘normal’, staff will have a huge amount of holiday entitlement to take, leaving you facing another problem.
The Government have confirmed that employees can be placed on enforced holiday whilst on Furlough, but they must have their wages topped up to 100% for that period. You can still claim the 80% furlough whilst the employee is on enforced holiday, so its much cheaper overall to pay the holiday now rather than later.
To enforce holiday on your workers, you must give twice the amount of notice for the number of days you are enforcing. For example, if you are enforcing 5 days, you must give 10 days notice. You are encouraged to engage with your workers in this process, explaining the reasons for the action.
A worker working 5 days per week who went on to Furlough on 1st April and is expected to return to work on 1st July will have accrued entitlements of 7 days whilst on Furlough, assuming the statutory minimum holiday entitlement of 20 days + bank holidays.
Bank Holidays need to paid as holiday whilst on Furlough (100%), or they can be added to the holiday accrued to take later on.
We strongly suggest you urgently consider this for your business as it could save a significant headache later on!
If you need any help with this, please feel free to contact the office.