I've got a client company which, irritatingly, wants to use this scheme.
The director has posed this question.
Keeping the numbers simple, suppose the employee works all but three days in the period. The Government pays for one day and the company pays for one day.
Can the employee take a day's holiday on the other day ?
My thoughts are yes, but, that holiday becomes pay under the contract and the Government will only pay for a third of two days, rather than a third of three days (which is what the director has been assuming).
No doubt as Christmas and New Year come along, this will assume greater importance.