Holidays Are Coming

15 May 2020

The last thing on many people’s mind at present is getting away. But aside from the personal aspect there is a very real business impact of when you ask your furloughed employers to take a break.

The guidance states that, “If a worker on furlough takes annual leave, an employer must calculate and pay the correct holiday pay in accordance with current legislation – see the standard guidance. Where this calculated rate is above the pay the worker receives while on furlough, the employer must pay the difference. However, as taking holiday does not break the furlough period, the employer can continue to claim the 80% grant from the government to cover most of the cost of holiday pay”.

The full government guidance can be found here.

For businesses thinking about bringing staff back off holiday it might be worth having a discussion with them before that happens about them taking time off.

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