On 17 April 2020, Government updated their guidance “Check if your employer can use the Coronavirus Job Retention Scheme’ to include the heading “holiday pay”.
The guidance states;
- Whilst furloughed employees will continue to accrue annual leave as per your employment contract.
- Employees can take holiday whilst on furlough.
- Where an employee’s rate of pay varies, employers will need to calculate the pay on the basis of the average pay they received in the previous 52 working weeks as per the Working Time Regulations 1998.
- Employers will be obliged to pay the additional amounts of holiday pay on top of the grant from the Coronavirus Job Retention Scheme (‘CJRS’).
- Employers will have the flexibility to restrict when leave can be taken if there is a business need, during both the furlough and “recovery” period.
- If an employee is expected to work on bank holidays, then the employer can agree that this is included in the CJRS.
- If bank holidays are usually given as leave, then the employer would either have to top up the employee’s pay (the extra 20%) or allow a day of holiday in lieu.
See the updated guidance here.
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https://www.aspirepartnership.co.uk/News/3436/covid-19-clarity-on-annual-leave-entitlement
