Furlough Scheme Rules Holiday Pay, Coronavirus Crisis Your Financial Rights Financial Times

If the employer and the worker agree that the bank holiday can be taken as annual leave while on furlough the employer must pay the correct holiday pay for the worker.

New furlough scheme from october. However the guidance states that employers should not place employees on furlough simply because they are on holiday at that time. In october the final month of the scheme the government will pay 60 with a cap up to 1875 for the hours the employee is on furlough. For all employers trying to understand how the governments furlough rules apply to your workforce including their annual leave and holiday pay then read our latest article below.

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 guidance clarified that employers can claim through the job retention scheme for furloughed workers even while they were taking holiday. Any holiday entitlement that is taken for bank holidays or any other days must be paid based on the holiday pay regulations which changed on 6 april 2020 si 20181378.

However as taking holiday does not break the furlough period your employer can continue to claim the 80 per cent grant from the government to cover most of the cost of holiday pay. Furlough rules during the ongoing coronavirus pandemic changed on july 1 heres what it all means including part time furlough calculations of pay and holiday entitlement birminghammail share. In view of the two extensions to the furlough scheme the issue of what happens to holidays is important.

Employers must pay er nic and pension contributions as well as topping up the employees wages so that they reach 80 for the time that theyre furloughed. It is therefore important to distinguish between periods of leave taken up to 5 april 2020 and subsequently. The employer will be able to claim 80 of the employees pay for the whole of the holiday period through the scheme although they will still have to top up the employees wage to their full rate pay.

But they are required to make the difference up if the employee is entitled to higher holiday pay than their furlough pay it said. Between march and july the government paid for 80 of furloughed workers wages up to 2500 a month and it also.