Employers should not place employees on furlough just because they are going to be on paid leave. Employers therefore need to calculate the correct holiday pay and where this is above the pay the worker receives while on furlough, the employer must top up the worker’s pay (but can still continue to claim the 80% from the government). If an employee or worker leaves their job or is dismissed and has carried over paid holiday because of coronavirus, any untaken paid holiday must be added to their final pay ('paid in lieu'). Holiday top up is '4 days holiday pay' less ' 4 days furlough claim' = Holiday top up by employer. If a furloughed employee takes holiday, their employer should top up their pay to their normal rate in … Bank holidays. The employer will be able to claim 80% of the employee’s pay for the whole of the holiday period through the scheme, although they will still have to top-up the employee’s wage to their full rate pay. However, the guidance states that employers should not place employees on furlough simply because they are on holiday at that time. Taking holiday will not interrupt a period of furlough, meaning employers can continue to claim under the furlough scheme for employees using annual leave. If due to the impact of coronavirus on operations your employer is unable to fund the difference, you might be allowed to carry your annual leave into next year. Bank holidays are usually part of the legal minimum 5.6 weeks' paid holiday. Taking a holiday will not affect their furlough period so you can claim the normal 80% of the grant from the government which covers the cost of holiday pay as well. This means you or your clients can claim 80% of their usual wages for these hours. For more information on calculating a worker’s holiday pay during furlough please refer to: Holiday entitlement and pay during coronavirus (COVID-19) Thank You. Holiday pay, whether the worker is on furlough or not, should be based on a worker’s usual earnings. According to the government’s guidance on holiday entitlement and pay, an employer can compel you to take your annual leave while on furlough as long as proper notice requirements are met. For employees who have variable pay, holiday pay should be calculated on the basis of the average pay received by the employee in the previous 52 working weeks. Please see below though with regard to topping up furlough pay for periods of holiday. However, as taking holiday does not break the furlough period, your employer can continue to claim the 80 per cent grant from the government to cover most of the cost of holiday pay. Holiday pay, whether the worker is on furlough or not, should be calculated in line with current legislation. If the holiday pay is higher than the pay they get on furlough, you are obligated to pay the difference. As expected, government guidance confirmed that holiday entitlements would continue to accrue for furloughed workers unless otherwise […] Accrual of holiday entitlement whilst on furlough leave under the Job Retention Scheme (“JRS”) After weeks of uncertainty, the position on holiday pay for furloughed workers was finally addressed by government guidance published late on Friday 17 April. However, by doing this, I wonder if I compare the right amounts, as the furlough pay is based on days in a full calendar month, but holiday pay is based on actual working days (from annual salary).