Employees have taken a 10% pay cut, including those on furlough. For some, this takes then below NMW, however as they've been fully furloughed this hasn't really been an issue.
However, they're now being asked to use up holiday entitlement. I understand that holiday pay as such does not need to meet NMW, but has to be calculated in line with the Working Time Regs, which would ordinarily mean that holiday pay is above NMW by default.
In these circumstances though, they are accruing holidays on furloughed hours on which NMW does not apply. So does this mean that paying them holiday pay at their 10% reduced rates - which are sometimes below NMW - is acceptable?
Doesn't seem right. My head hurts!