The Coronavirus pandemic is an unprecedented situation, which has seen many employees being placed on furlough. This has led some employees to stockpile holiday entitlement.
Almost all workers who work a five-day week currently receive 28 days of statutory leave entitlement inclusive of bank holidays. This entitlement is not normally transferable between leave years.
New holiday provisions
The Government has passed new emergency legislation allowing workers to carry forward, for two years, up to four weeks of unused leave the Coronavirus outbreak prevented them from taking. This eases the requirements on businesses to ensure that workers take the statutory amount of annual leave in one year. These amendments to the Working Time Regulations 1998 apply to all employees, including agency workers, and some casual and zero-hours contract workers. Financial penalties for employers who do not ensure that workers take their statutory entitlement in one year are also lifted.
Payments in lieu of holiday are usually disallowed unless the worker is leaving the employer, this has also been changed.
However, just because this legislation has been passed does not mean that it will happen in this way. The normal annual leave provisions are still in place and employers must still take all reasonable measures to allow an employee to take their allocated leave, These changes are for those workers that have been unable to take their leave due to the fact that they have needed to work during this crisis period.
Options for furloughed employees
Employers can require workers to take holiday as long as they give them twice as many days’ notice as the period of leave the worker is required to take, or whatever is outlined in their employment contract. Employers are recommended to seek their employee’s agreement to this arrangement, as this will come at a time where employees are unable to travel freely due to lockdown measures. Employees may be happy to agree to this arrangement as it would mean that the employee would be entitled to full pay for the period of annual leave.
This set of rules would apply equally to those employees who have not been furloughed.
Holiday allowance above the statutory amount continues to accrue during furlough
If an employee is contractually entitled to more than the statutory amount (i.e. a business offers more than the 28 days statutory amount) then employers can ask employees to agree that leave above the statutory amount does not accrue during the period of furlough, however, this must be agreed and confirmed in writing by both parties.
Without such an agreement, the employee still accrues annual leave at the rate of their contractual entitlement.
Topping up furlough pay using holiday
The Government guidance does not address if furloughed workers can use holiday to top up their 80 per cent salary pay. If holiday is taken during a furlough period employers should top up the holiday pay to the full normal salary amount. Employers can also claim 80 per cent of the holiday pay through the furlough grant in the same way as regular salary.
Employees who are worried about a drop in income may propose taking holiday on set dates on full pay. They may only agree to being furloughed before or after some leave on full salary for the holiday part of the period.
Employers who are not in a financial position to pay furloughed employees in full during annual leave can refuse employees’ requests for holiday in what would otherwise be a furlough period. The employer must give the normal notice which is as much notice of a refusal as the amount of leave requested, so two weeks’ notice if the leave requested was for two weeks.
The information provided in this article is for general information purposes and does not constitute legal advice. Whilst the material is valid at the time of publication, changes in circumstances may impact the accuracy and validity of the information. It is therefore suggested that you consult with the Government website for the very latest information or speak with an HR adviser on the HR member legal helpline.
PROPERTYMARK POST PANDEMIC PLAN
Propertymark’s Post Pandemic Plan articles support agents with their preparations to emerge from the Coronavirus lockdown and prepare them to maximise market potential, add value, and underpin their business.
Post pandemic plan: Managing annual leave
With businesses in England looking to reopen, and those in other parts of the UK still under lockdown, agency managers may struggle to balance the annual leave needs of staff with keeping the business running both now and when offices are reopened.
Post pandemic plan: What agents should consider if a second #StayAtHome occurs
Given the uncertain times ahead, agents should consider revitalising their agency and continue adapting to reap the benefits if a second stay at home measure may be on the cards.
Post pandemic plan: Transitioning staff back into the workplace safely
As the Secretary of State announced the lifting of restrictions on the property industry last week, agencies have been considering options around returning their staff.
Post pandemic plan: Agents must be clear communicators to confront virus fears
With the property market now open for business in England, agents may find themselves dealing with not only buyers eager to get out there and find a property but vendors who are wary of inviting people into their home.
Post pandemic plan: The current power of social media
Social media has always been a vital component for an agency, but given the current times we are faced with, agents should be using these tools to their advantage and looking at their channels as an opportunity to online network.
Post pandemic plan: preparing your office
The timescales are uncertain but, at some point soon, offices and businesses will be allowed to reopen, and people will go back to work. Getting your office prepared is something you can work towards now, whilst still in lockdown.
Post pandemic plan: Why market and brand research are so important
During the pandemic, agency’s brands should continue to advertise, but the way in which they communicate must be addressed given the significant change in life as we know it. Use this time to analyse your agency and potential customers by utilising data that is already at your fingertips.
Post Pandemic Plan: Do you know what it costs to market a property?
During the lockdown period, many agents with furloughed staff have experienced the roles and responsibilities carried out by staff right across the company. This has provided an opportunity to reassess the business and appraise a wide number of processes.
Post Pandemic Plan: Marketing planning to stand your business in good stead
In light of the pandemic, speaking with your clients, marketing your business in the correct light and having the right approach when having conversations has never been so important. Keep your business at the forefront of the ongoing change with some expert advice.
Post Pandemic Plan: Socially distanced viewings
Even when the lockdown is lifted, it is unlikely that life will immediately return to the way it was previously. Agents will be wondering what they can do to provide viewings to service vendors and kick start their business.
