Furlough being used to pay holiday pay

Caroleanne

My new problem today is my employer wants the whole company to take a weeks holiday using accrued holiday, but claiming 80% as furlough, and just making up the other 20%.

I really cannot see how this right, can holiday pay be furloughed

Any help is appreciated

amurray

Hi Caroleanne,

Holiday pay has to be paid at the FULL rate as per normal (I.e. normal rate per hour/daily rate if salaried). So if your company were going to pay the employees their full pay for the holiday period and just claim up to the max grant possible, then that would be ok. But if the employer is hoping to just pay the Furlough payment to them instead of the employees FULL rate, then this is not ok.

Employers can ask employees to take holiday in the Furlough period, but this has to be paid at the FULL rate (because if not alot of employers would be onto a winner - getting their staff paid by the government and taking away employees HOL entitlement!).

I enclose a link below to the GOV website which includes an element of Holiday Pay:
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme#while-youre-on-furlough

On another note, in normal circumstances (Non-holiday related):
If the employer only wants to pay the employees the only the grant being claimed, that is fine. They do not have to make up the 20% Top up (This is the employers choice to do so, but this 20% cannot be reclaimed back from the government). Although its a great gesture and good for staff morale/culture in the business - if a business can still afford to do this, its very admirable!

I would advise your employers to be very careful re holiday pay, their actions could cost them alot more later down the line!

Hope this helps?