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Can I use flexible furlough to utilise an employee’s holiday entitlement?

Employees are generally permitted to take holidays during furlough. However, Government guidance has been updated to state that “Employees should not be placed on furlough for a period simply because they are on holiday for that period.” If a period of furlough happens to coincide with an employee’s holiday then you should ensure that there are business grounds to support furlough being used in that instance so that it isn’t just being used as a means to fund holiday utilisation.

Related FAQs

What if employees display coronavirus symptoms?

It remains the case that anyone who has symptoms, however mild, or is in a household where someone has symptoms, should not leave their house to go to work. Those people should self-isolate, as should those in their households.

Is there a matched funding scheme for the National Emergencies Trust?

The government has also confirmed it will match donations to the National Emergencies Trust as part of the BBC’s Big Night In fundraiser on 23 April – pledging a minimum of £20 million.

Can the apprentice take a break or pause in learning due to coronavirus?

A break or pause in learning can be initiated where the interruption to learning due to Covid-19 is greater than four weeks. This must be reported as a formal break in learning. In such circumstance the funding to the training provider will be suspended for the duration of the break. Previously, the rules only allowed an apprentice to initiate this break in learning but this has been expanded to give employers and training providers the right to initiate this. Training providers should continue with their monthly IRL submissions to the ESFA. During breaks in apprenticeships it is not necessary for the apprentice to comply with the minimum of 20% on the job training requirement but this will resume when the break ends.

Can employees take annual leave during a period of furlough?

Yes, however holiday pay during furlough must remain at the normal rate of pay and not the reduced furloughed rate. You can still claim for this period under the scheme but you will be responsible for any amounts beyond the maximum you can claim. Employers have flexibility to restrict when leave can be taken both during and after period of furlough in the normal way.

If an employee usually works bank holidays then the employer can agree that this is included in the grant payment. If the employee usually takes the bank holiday as leave then you would either have to top up their usual holiday pay, or give the employee a day of holiday in lieu.

Alternatives to redundancy toolkit

We have developed a Toolkit to help with these issues. The Toolkit contains:

  • LO1 How to Guide: Lay off and short time working
  • LO2 Letter directing employee to take annual leave
  • LO3 Letter confirming lay off (contractual right)
  • LO4 Letter confirming short time working (contractual right)
  • LO5 Letter proposing lay off (no contractual right)
  • LO6 Letter proposing short time working (no contractual right)
  • LO7 Counter notice disputing entitlement to claim redundancy payment
  • LO8 Script for announcing lay off or short time working (contractual right)
  • LO9 Script for announcing lay off or short time working (no contractual right)
  • LO10 Letter proposing reduction in working hours and pay

The cost of this Toolkit is £500 plus vat. If you would like to find out more about the Toolkit, please speak to your usual Ward Hadaway employment contact, or get in touch one of the contacts at the bottom of this page.