Information updated based on the Government’s guidance on 17 April 2020 at 18:33
Please refer to our Employment Bulletin articles for the latest updates.
Scheme extended to end of June
On 17 April HM Treasury announced the Coronavirus Job Retention Scheme (the furlough scheme) has been extended from 31 May 2020 to the end of June.
Annual leave whilst on furlough
HMRC has now provided clarity on the question of annual leave whilst on furlough. They have done this by updating the Employee’s Guidance. To review the guidance follow this link: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme .
The Employee’s Guidance now states that annual leave can been taken whilst on furlough provided that the employer tops-up to 100% of normal pay.
You should note the Guidance ends this section on annual leave by saying: “During this unprecedented time, we are keeping the policy on holiday pay during furlough under review.” This is slightly ominous and appears to leave the door open on HMRC changing its mind on this.