Harrogate District Chamber of Commerce News

Job Retention Scheme

8 Apr 2020 by McCormicks Solicitors

There is now updated guidance available from ACAS and HMRC on the Job Retention Scheme

We have previously sent an update on holiday and periods of furlough. The latest guidance from ACAS on the treatment of bank holidays and furlough is set out below:

  • Bank holidays are usually part of the legal minimum 5.6 weeks’ paid holiday. Employees and workers must get their usual pay for bank holidays.
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  • Employees and workers may still be required to use a day’s paid holiday for bank holidays, including when they are furloughed. If bank holidays are given on top of the 5.6 week’s paid holiday, employees and workers should check their contract or talk to their employer about taking this holiday.
       
  • If employees and workers usually work on bank holidays but are currently furloughed, they should check with their employer to see if they have to take holiday on that day or if they can take the time off at a later date.
       
  • If employees and workers cannot take bank holidays off due to Coronavirus, they should use the holiday at a later date in their leave year.
       
  • If this is not possible, bank holidays can be included in the 4 weeks’ paid holiday that can be carried over. This holiday can be taken at any time over a 2-year period.

It is interesting that workers should get their usual pay if bank holidays are taken. The safest option might be to pay pre-furlough remuneration.

It appears to be acceptable to ask workers to be off on leave on bank holidays during furlough where these days are designated as holiday in the contract. However, it is thought this would not allow employers to run down annual leave generally during furlough. A number of employers have commented to us that they think it would be unreasonable to do so, particularly as there is a new option to carry over annual leave. We suspect many employers will allow a carry-over of the forthcoming bank holidays.

Our Head of Employment, Iain Jenkins, has been putting together our updates. Please contact him on i.jenkins@mccormicks-solicitors.com  if you require any assistance.