The following notes may help you answer queries from clients unsure as to how they deal with holiday pay to furloughed employees.
Workers have the right to build up holiday entitlement while they are on temporary leave – furloughed - because of coronavirus. They can also take leave while on furlough.
If a furloughed worker usually takes a bank holiday as paid leave, they can agree with their employer to take it as normal or take it at a later date.
An employer must give a furloughed worker at least 2 days’ notice if they want them to take a bank holiday as annual leave unless the worker’s employment contract says something different. The employer must tell the worker at least one day in advance of giving 2 days’ notice.
An employer can continue to claim a grant under the Coronavirus Job Retention Scheme when a furloughed worker takes annual leave. A furloughed worker’s holiday pay must be calculated as normal.
If the holiday pay turns out to be more than the worker is paid while on furlough, the employer must pay the difference.