Employee giving notice while on full furlough

80% of notice pay can no longer be claimed under CJRS. Can holidays be utilised while on notice?

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An employee on full furlough gives notice of resignation (one week).   She has 4 weeks' holiday entitlement remaining.  Just checking, as she can't work her notice, does the employer have to pay one week's PILON and the 4 weeks' holiday pay, or can one of the week's holiday entitlement be utilised while on notice?  If so, I suppose agreement should have been reached between the employer and employee before notice was given, it which case it would be too late?   

Sorry, I should probably know all this but it's been a long day.   

I understand 80% furlough can no longer be claimed from CJRS for notice periods and the employee must be paid full pay, so I'm not worried about that bit.

Thanks.

Replies (5)

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By tltodman
11th May 2021 23:04

I'd say you it would depend on the employment contract. In normal circumstances the employer must give twice the amount of notice for the length of holiday they want the employee to use (ie 2 weeks' notice to use 1 week's holiday) but some contracts (eg the standard contract from the FSB) has a clause built in that holiday can be enforced during the notice period with no prior notice. If there's no such clause then it would seem that you have to pay the notice week plus the holiday on top, unless the employee will agree to taking holiday during the notice period.

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Replying to tltodman:
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By Paul Crowley
12th May 2021 00:59

agree
Does not work for a week conveniently.
But can, each day, give 2 days notice of 1 days holiday.
There is an old thread from 6 months ago giving chapter and verse on the daily scenario.

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By Barbara G
11th May 2021 23:30

That's what I thought, many thanks for confirming. Just wanted to check to be sure, as didn't want employer being disadvantaged more than necessary.

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By Hugo Fair
12th May 2021 12:28

FWIW I don't wholly agree with the earlier responses ... although the end result will be same as it sounds as though this bird has flown the nest already.

I think the key issue is that the employee was on full furlough when she gave notice of resignation ... so what does the furlough agreement say on the matter (if anything)?

If it is silent on such circumstances, then the other responses come into play; but there's no reason (however unlikely) why it should not contain a term covering this situation ... potentially allowing the employer to immediately close her furlough, thereby moving the employee into 'work' from which she could be put on holiday.

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By wingman22
12th May 2021 14:48

Not a technical answer and we don't know the figures involved but just pay the extra week. It may cost less than the future aggravation involved.

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