COVID-19: Managing annual leave during and after furlough

As we have already advised, annual leave continues to accrue while employees are furloughed. This means that when people start to come back from furlough, businesses could find themselves with a lot of employees wanting holiday at the same time.

The Government have advised that employees can carry over their statutory annual leave over into the next year. However, this doesn’t necessarily help the business especially as employees will accrued ‘extra’ leave due to being on furlough over quite a few bank holidays.

To help businesses deal with this, we suggest they consider allocating staff leave while they remain on furlough. Under the Working Time Regulations, employers can do this as long as they give twice as much notice as the length of leave and so if you want to give an employee one weeks leave, you need to give them two weeks’ notice. The plus for the employee is that they will be entitled to 100% of their salary for that week and the plus for the employer is that they can still claim the standard furlough 80% for the same week.



Authors: Nona Bowkis

Published: 03 May 2020


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