Holiday entitlement and pay for furloughed workers

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The majority of workers are entitled to 5.6 weeks’ worth of paid holiday on an annual basis.

There is an exception to this in those who are self-employed.

The entitlement remains unchanged regardless of whether an individual is on sick leave, parental leave or any other form of statutory leave.

A worker can request holiday at the same time as they are on sick leave but cannot be forced to take holiday while off sick.

Workers who have been placed on furlough continue to accrue statutory holiday entitlements throughout the period in which they are placed on furlough, and also any additional holiday entitlement laid out in their contract of employment with the appropriate notice for example for one weeks leave, two weeks’ notice is required and so on.

If employers would like workers to take annual leave during their period of furlough, they should discuss this with them before requiring them to do so.

Workers on furlough are entitled to take holiday, and it will not effect their furlough, however employees must be paid at 100% pay and employers can still claim the 80% furlough.

Holiday pay for those on furlough and also for those who aren’t, should be calculated in alignment with current legislation and based on a worker’s usual earnings.

The government has passed new emergency legislation - The Working Time (Coronavirus) (Amendment) Regulations 2020, - which will mean that workers will be able to carry holiday forward where the impact of coronavirus has meant that it has not been reasonably practicable for them to take it in the leave year to which it relates.

This applies to the four weeks’ worth of holiday, and it can be carried forward to the following two leave years.

For further advice on this or any other payroll matter contact our payroll manager Lisa McLoed on 01244 343504.