Holiday Entitlement during the Coronavirus Pandemic – 2nd April 2020

Holiday Entitlement during the Coronavirus Pandemic – 2nd April 2020

Here Gill Wooldridge provides some guidance on some of the main issues that employers are facing regarding the thorny issue of holidays during the pandemic.

Can leave be carried forward into next year?

Please note that it was announced a few days ago that the current regulations under the working time regulations regarding carry forward of leave have been relaxed to give employers some flexibility to deal with holiday entitlement that cannot be taken this year due to the pandemic.  It has been agreed that the first four weeks of paid holiday may be carried forward to be taken over the next two years.  Please see ACAS website for further details.

https://www.acas.org.uk/coronavirus/using-holiday

Does holiday entitlement accrue during Furlough Leave?

Yes, statutory annual leave will continue to accrue during Furlough leave because the contract of employment continues during this period.  Contractual annual leave in excess of the statutory minimum will also continue to accrue, unless the contract specifies otherwise.

Can you take holiday whilst on Furlough Leave?

Neither HMRC or BEIS (Department for Business, Energy and Industrial Strategy) have provided guidance on taking holiday during Furlough Leave.  Under working time regulations, you can take annual leave during Furlough.  You are not at work and not working as you have been effectively laid off but can be on holiday.  Please note that this would include the statutory bank holidays.  However, it is currently not certain whether holiday pay will definitely be reimbursed by HMRC and so employers may not want to take the risk until further clarity is received.

Can you require employees to take annual leave during Furlough?

As above, it is not certain whether holiday pay will be reimbursed at this stage.  Notice would be required of twice the length of leave that you would like the employees to take, for example, two weeks notice to take one weeks leave.

What pay is an employee entitled to when they take annual leave during furlough leave?

Holiday pay (subject to HMRC guidance) depends on whether the employee has normal working hours and how they are paid.  Where an employee has a fixed salary, the holiday pay would be based on the basic pay payable for their normal working hours and therefore would be paid at their usual week’s pay rate (ie not the rate they would be receiving for furlough leave).

Please contact Gill by email, gill@bradleyhayneslaw.co.uk or on 01905 900919 if you need any employment or HR advice on holiday entitlement or any other issues related to the Coronavirus pandemic.