Coronavirus: Your workplace questions

Accruing Annual Leave during Furloughed Period:
Clearly the accrual of annual leave is an additional cost that employers will have to take into account if at the end of the furlough period the outcome is redundancy - could anyone confirm that I have this correct? I appreciate the government has put in measures to allow people to carry over leave for two years, but in the event of a redundancy, would the only option be to pay accrued AL at 100% wage? Thanks.

Accruing Annual Leave during Furloughed Period:
Clearly the accrual of annual leave is an additional cost that employers will have to take into account if at the end of the furlough period the outcome is redundancy - could anyone confirm that I have this correct? I appreciate the government has put in measures to allow people to carry over leave for two years, but in the event of a redundancy, would the only option be to pay accrued AL at 100% wage? Thanks.

I think you are right Lucy, that's how I've read it. The other option we considered is to ask staff to take leave during furlough but the guidelines are silent on whether this is acceptable or if going on to a period of annual leave will "break" the furlough. Or if they can take leave during the furlough, what rate is it paid out, normal pay or furlough rate...? I'm keeping a constant eye on guidance...

Hi Lucy - I have similar questions, it seems that there is not yet clear guidance on this point with nothing stopping an EE from being furloughed and on annual leave at the same time. Annual leave requires EE's to be paid a week's pay for a week's leave. Annual leave may therefore need to be paid at the usual rate of a week's pay rather than the 80% but again not clear as to whether the business would be able to claim for 80% of this cost and only subsidise the 20% for the duration of the leave. As guidance is not clear, the business could end up with full liability for holiday days/weeks if the Government issues further guidance that the furlough grant may not be used to be allocated to leave during furlough. This is tricky and subject to further interpretation. In the case of potential for redundancy it seems as though either way the leave would need to be paid out at normal wage rate and if this is the case, may be a consideration to allow leave to be taken - but this would clearly need further guidance from an employment law specialist in my view. Do share if you have any solutions on this.

www.acas.org.uk/.../using-holiday

The relevant extracts are:

If an employee or worker is temporarily sent home because there’s no work and the employer intends to claim for their wages under the Coronavirus Job Retention Scheme ('furloughed'), they can still request and take their holiday in the usual way. This includes bank holidays.

Employees and workers must get their usual pay in full, for any holidays they take….


Bank holidays are usually part of the legal minimum 5.6 weeks’ paid holiday. Employees and workers must get their usual pay for bank holidays.

Employees and workers may still be required to use a day’s paid holiday for bank holidays, including when they’re furloughed. If bank holidays are given on top of the 5.6 week’s paid holiday, employees and workers should check their contract or talk to their employer about taking this holiday.

If employees and workers usually work on bank holidays but are currently furloughed, they should check with their employer to see if they have to take holiday on that day or if they can take the time off at a later date.

If employees and workers cannot take bank holidays off due to coronavirus, they should use the holiday at a later date in their leave year.

If this is not possible, bank holidays can be included in the 4 weeks’ paid holiday that can be carried over. This holiday can be taken at any time over a 2-year period.

Lucy based on the research I have done today on this and the ACAS website that Keith posted in response to my earlier comment www.acas.org.uk/.../using-holiday - the answer to you question I would think is yes, this will be an extra expense that the business will need to take into account as annual leave will accrue at full time rate.
I would also be interested to understand how an 80% payslip would look if the person on furlough takes leave during furlough as by extension then it seems that the days that the person is on leave also need to be paid at full rate, so it would also require higher payment than the 80% by the business.

www.cipd.co.uk/.../furlough

says we can allow

The ability to carry forward four weeks of annual leave only applies where it was not reasonably practicable for a worker to take some or all of the leave as a result of the effects of coronavirus – “this will mean staff can continue working in the national effort against the coronavirus without losing out on annual leave entitlement” (gov.uk website). Therefore, if you aren't in that sort of organisation then you can continue with your existing annual leave policy.

I was actually wondering what other employers, not in that sort of organisation, are doing around annual leave. Are the rules being relaxed at all where you work?

There’s nothing stopping all employers relaxing the rules ( or keeping them) the guidance is so wide as to capture everyone. The relaxation isn’t an instruction and doesnt prevent even those caught up in this enforcing their holiday rules if they deem it appropriate.

We are still requiring staff to take sone leave as we believe it’s in their interests to do so.

Most NHS staff are still required to take leave and often it’s in the rota.

Yes that is correct.