A reminder to employers with staff on furlough.

HR specialist Peter Greeaway looks at holiday payments for staff on furlough.

As I am sure you are aware, contracts of employment continue for all staff who are furloughed, and the staff therefore continue to accrue paid holiday entitlement during furlough. Holiday entitlement is paid at 100% of their contractual rate. The furloughed amount of 80% can still be recovered from the Government in the usual way but the worker must be paid at their contractual rate so, if not already enhanced, the employer must pay the difference between the furlough rate and the contractual rate.

This will also apply if your workplace has a shut down over the Christmas and New Year period; any shut down will be taken from their accrued holiday entitlement, paid by the employer at their contractual rate with the furlough element of 80% being recoverable through the furlough scheme.

For more guidance and tables please see this link: www.gov.uk/guidance/holiday-entitlement-and-pay-during-coronavirus-covid-19