The BFA have listed the holiday entitlement information to help you and your staff.
Ensure that you have discussed and covered every aspect of holiday leave while Covid-19 exists.
How to treat holidays for staff on Furlough Leave
If the employee has pre-booked holiday which will falls during Furlough Leave, the employer should contact them and ask if they want to continue with the holiday (in which case the employer must pay full normal wage for the holiday days). If the employee doesn’t want to continue with the holidays, it is cancelled and they are then paid 80% of their normal wage; the holiday is available to be claimed and taken at another time.
Should a bank holiday fall during a period of furlough leave and the contract states annual holiday must be taken on a bank holiday, the employer should advise the employee that this remains the case; they will receive full pay for the bank holiday.
If an employee doesn’t work on a bank holiday (e.g. a part-timer who doesn’t work a Monday for example), there will be no impact on them due to the bank holiday. They will not be required to use holiday entitlement and of course won’t be paid for this day.
Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years.
Workers who have not taken all of their statutory annual leave entitlement due to COVID-19 will now be able to carry it over into the next 2 leave years, under measures introduced by Business Secretary Alok Sharma today (Friday 27 March).
Currently, almost all workers are entitled to 28 days holiday including bank holidays each year. However, most of this entitlement cannot be carried between leave years, meaning workers lose their holiday if they do not take it.
There is also an obligation on employers to ensure their workers take their statutory entitlement in any one year – failure to do so could result in a financial penalty.
The regulations will allow up to 4 weeks of unused leave to be carried into the next 2 leave years, easing the requirements on business to ensure that workers take statutory amount of annual leave in any one year.
For more information on Statuary Annual leave click here
Statutory annual leave still accrues during sick leave
It is worth noting that statutory annual leave continues to accrue while an employee is off sick, no matter how long they are away from work, and can be taken during sick leave. You cannot insist that employees take annual leave when they’re eligible for sick leave.