Furlough and holiday pay

outgoing member of staff

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Hi everyone

I'm thinking that the following question is likely easily answered, and that having spent the last couple of days processing furlough claims has fried my brain to the point of loacking common sense!!

Client has a furloughed member of staff with 50 hours remaining in holiday entitlement. The member of staff is leaving employment on 30 June.

Is the employer within their rights when processing the employees payslip to add the 50 hours in automatically to 'top-up' the employees pay to their full hourly rate, rather than having to add the holiday pay on at the end of employment and end up paying 50 hours in holiday pay at full rate (in addition to furloughed amount for June).

Replies (4)

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By Michael Beaver
23rd Jun 2020 14:42

If what you are asking is 'can the employer force the employee to take annual leave as part of their notice period' then they would have to check the contract of employment.

Assuming that they can, the government guidance is that taking annual leave does not break furlough. So in theory the employer can recoup it via a claim, subject to the 80% or £2,500 limits.

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By Moonbeam
23rd Jun 2020 14:46

The employer must give double the amount of notice to the employee compared to the time they expect them to take. So they just about have enough time to email the employee now that they expect the employee to take that time before 30 June.
They should pay the extra 20% for the holiday in June pay.

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Replying to Moonbeam:
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By Mr_awol
23rd Jun 2020 15:51

Moonbeam wrote:

The employer must give double the amount of notice to the employee compared to the time they expect them to take. So they just about have enough time to email the employee now that they expect the employee to take that time before 30 June.
They should pay the extra 20% for the holiday in June pay.

Assuming they work a 40 hour week, then this is a week and a bit's holiday - to say 2-2 1/2 weeks notice, by which time the employee will have gone.

Looks like the employer will have to pay the 50 hours holiday pay out of their own pocket...…..

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Replying to Mr_awol:
By Moonbeam
23rd Jun 2020 16:21

Yes, of course you're right!

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