
October 8, 2024
Over the weekend, the Government updated their guidance for the Job Retention Scheme, clarifying some of the issues we have been dealing with for our clients.
The updated guidance is here – https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme?mc_cid=177bacbc11&mc_eid=e168a8d993
For those following our previous blogs, you will see that we are trying to summarise the guidance and focus on what are the main points. We believe these points are as follows:-
What about holiday leave and holiday pay?
There is still no guidance on the very thorny issue of holiday leave and holiday pay for furloughed workers. Under the Working Time Regulations 1998, an employer is able to dictate to their employees when holiday will be taken, subject to certain notice provisions. Many employers would want their employees to be using up their accrued holiday entitlement during furlough leave, to avoid multiple holiday requests coming in once we are out of this current period of lockdown. Whilst the Government have extended the period of carry over to alleviate some of this burden, it would make a lot of sense for people to use holidays when on leave.
The Government seems to recognise that furloughed workers can also be on maternity leave and receive Statutory Maternity Pay, so why can’t furloughed workers be on holiday pay and get holiday pay?
If you are allowed to insist that your employees use their holiday entitlement, then at what rate should that be paid? Would it be their “salary” in terms of the Job Retention Scheme (of the 80% subject to the cap), which will not take account of any bonuses or certain commissions, or will it be their “normal remuneration” which will be based on current case law and on 100% of their previous remuneration? Can you claim under the Job Retention Scheme for those furloughed workers on holiday leave, meaning the Government are in essence funding that holiday pay payment?
We will need to wait and see what further guidance is produced and we will of course be updating our articles, so keep checking our website for details.
If you have any questions, then please contact one of our employment law partners, Stuart Robertson (srobertson@gilsongray.co.uk) or Graham Millar (gmillar@gilsongray.co.uk).
The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.
Graham has built up an enormous loyalty with his clients and he is often called upon to provide a pragmatic and commercially sensible view on the running of his clients’ businesses.