Newly updated government guidance has confirmed that employees should not be placed on furlough leave simply because they have taken holiday.
Can I place an employee on furlough leave when they are due to take holiday?
Until today, there had been some uncertainty as to whether an employer could place an eligible employee on furlough leave, solely in order to claim back a proportion of that employee’s holiday pay through the Coronavirus Job Retention Scheme (CJRS).
This could have arisen where an employee who qualifies for furlough leave has returned to work. If that employee then takes a period of holiday, the employer may have sought to furlough the employee for that holiday period. This would have enabled the employer to claim back a proportion of the employee’s holiday pay through the CJRS.
The government’s guidance has now made clear that this would not be permissible under the CJRS. The key new wording in the guidance is as follows:
“Employees should not be placed on furlough for a period simply because they are on holiday for that period.”
This doesn’t mean that holiday can’t be taken during furlough leave – and the guidance expressly confirms that it can. However, it does show that the government is seeking to prevent employers from using the CJRS in order to avoid paying staff for periods when they are required by the business.
What should you do?
- If any of your employees are taking holiday while they are furloughed, ensure that these individuals are not required by the business during that time.
- If, while a furloughed employee is on holiday, you determine that they are needed by the business, their furlough leave period should be ended during their holiday.
- Avoid putting any members of staff onto furlough leave just before (or shortly after) they have commenced a period of holiday.
If you require further guidance on the Coronavirus Job Retention Scheme (CJRS), please get in touch.