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Government pronunciation phonetic. Ken rang in to ask martin about the rules on furlough and holiday days. Furlough and holiday pay whilst furloughed employees will continue to accrue leave as per their employment contract. However employers may require employees to defer taking annual leave because employees will be entitled to their usual holiday pay during annual leave and employers will be obliged to pay the additional amounts due to the employee over the 802500 cap.
In view of the two extensions to the furlough scheme the issue of what happens to holidays is important. The picture is an ever changing one and since the time of writing this issue has now been clarified by hmrc. The coronavirus job retention scheme cjrs better known as the furlough scheme will be extended for another month following the announcement of a new national lockdown.
The government has extended the furlough job retention scheme until october 2020 although specific details of the scheme from august are yet to be clarified. Some optionsideas for employers to consider. The furlough scheme is one of the main things that martin gets questions on now and that continued today.
Where a bank holiday falls inside a workers period of furlough and the worker would have usually worked the bank holiday their furlough will be unaffected by the bank holiday. Employees can agree with their employer to vary holiday pay entitlement as part of the furlough agreement however almost all workers are entitled to 56 weeks of statutory paid annual leave each year which they cannot go below. However it does show that the government is seeking to prevent employers from using the cjrs in order to avoid paying staff for periods when they are required by the business.
If you offer enhanced holiday entitlement over the legal minimum 56 weeks then as long as your contracts or holiday policy permit you are at a lower risk by stipulating that this additional leave must be taken during the furlough period. One of the big unanswered questions which has been exercising the minds of hr professionals and employment lawyers alike since the announcement of the governments coronavirus job retention scheme cjrs is how annual holiday entitlement interacts with furlough leave. Workers on furlough can take holiday as normal.
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