Do you accrue holiday on furlough?

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The Coronavirus Job Retention Scheme (CJRS) was brought in back in early 2020 in response to the coronavirus pandemic. Under the current terms of the scheme, an employer can place an employee on furlough. The Government will then cover 80 percent of an employee’s wages for hours not worked, capped at £2,500 per month.

How long will furlough be in place for?

The furlough scheme is expected to stay in place over the next few months and is scheduled to finally end in September 2021.

However, an extension could be possible depending on whether further lockdowns are needed.

For May and June, the Government will pay 80 percent of wages, capped at £2,500.

However, towards the end of the scheme, the amount of Government support will taper off.

In July, the Government will pay 70 percent of an employee’s wages, capped at £2,187.50.

In August, Government support will drop by a further 10 percent.

For the months of August and September, the Government will only pay 60 percent of an employee’s wages.

The maximum amount the Government will pay is £1,875.

Throughout the remaining months of the furlough scheme, the onus will be on the employer to pay employees at least 80 percent of their wages, capped at £2,500 in total.

Employers are also able to top up wages above the 80 percent payment for hours not worked.

However, employers are not obligated to do this for hours the employee has not worked.

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Do you accrue holiday on furlough?

Although wages are covered by the Government while on furlough, furloughed workers still accrue holiday as usual.

The Government website states workers continue to accrue holiday while they are on furlough, based on statutory or contractual requirements.

The website explains: “Workers who have been placed on furlough continue to accrue statutory holiday entitlements, and any additional holiday provided for under their employment contract.

“Use the government holiday entitlement calculator to calculate a worker’s statutory holiday entitlement.”

Similarly, people on furlough are still eligible to take leave.

The Government guidance also explains: “Workers have the right to build up (‘accrue’) holiday entitlement while they’re on temporary leave (‘furloughed’) because of coronavirus (COVID-19).

“They can also take leave while on furlough.”

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