The government have extended the Furlough scheme to October and has added flexibility so that employees can get back to work with continued support for businesses who cannot yet offer full-time work. This is great news and some would say perhaps it should have been offered sooner. Below is the latest guidelines from the government about this new Flexible Furlough. I would flag here that 10th June is the latest date an employee can be furloughed for the 1st time.
Taking of Holiday and Holiday Pay whilst on Furlough
A number of clients have shown concern over the issue of holiday whilst their employees are furloughed and the rules around this. The CIPD have issued their latest guidance which I thought was worth sharing with you.
Enforcement of leave for furloughed staff
Previously, it has been understood that organisations can require a worker to take annual leave whilst on furlough, provided that the worker is paid in full for the time. Whilst the updated guidance does not change this, it does provide further clarity. It states that if an organisation wants to do this, they should ‘consider whether any restrictions the worker is under, such as the need to socially distance or self-isolate, would prevent the worker from resting, relaxing and enjoying leisure time, which is the fundamental purpose of holiday.’ This could potentially throw up roadblocks for furloughed staff being made to take leave, however it does remain to be seen how this would be enforced going forward.