Just wondering if anyone has advice on an employee being furloughed and told that they will not accrue holiday during the period?

I've seen on a couple of websites, including xperthr, that holiday is accrued during furlough, however I can't find any Gov guidelines around this. 

Any advice would be appreciated. 



  • Hi Ange, people who have been placed on Furlough continue to accrue holiday entitlement as usu. Key point is the employer has no work for them to do but their employment continues.
  • Latest changes announced also allow accrued holiday to be carried over for 2 years, to enable you to better manage workload and time off when they’re able to return to work.
  • Is the ability to carry over leave for 2 years applicable to those on furlough, I haven’t seen anything that gives clear guidelines who it applies to?

    Also, the advice I’ve received is we can instruct employees that they need to take their accumulated leave whilst on furlough, avoiding large balances when they return.
  • So if someone already has pre booked annual leave whilst on furlough, what happens to their pay?
  • In reply to Gareth:

    Thanks for this. I can't seem to find any Gov guidelines on this, can anyone point me in the right direction? If a notice of Furlough letter states holidays will not be accrued, is there any get out clause from an employee perspective?
  • In reply to Kate Drury:

    Hi Kate, the advice given by my organisation to our employees is that the employee will receive the pay they would normally receive for the time that they are on holiday as we understand it is possible to move between being furloughed and being on holiday. I am sure I read on Gov.uk that information can be uploaded to the portal every 3 weeks. Hope this helps.
  • Due to the short notice I guess that most payroll software won't have the furlough information within the system. With this in mind, how have you recorded this in your payroll software?
  • In reply to Helen:

    IN reply to Helen - Re Furlough and compulsory holidays - I have heard that you can provide notice to employees that they are required to take annual holidays during furlough. If proper notice is given, employees cannot refuse to take these holidays. Operationally it is going to be impossible to give employees any holidays at all after the furlough has finished. This issue doesn't go away even if employees are permitted to carry over holidays for 2 years. Does anyone have a template letter for this or further information?
  • In reply to Gareth:

    The Gov.UK website clearly states that normal employment rights continue to accrue. Because A/L is a "right" accruing over time. I would guess they haven't felt the need to explain further. Other authorities (as you note) have.

    What they also make clear is that the "permitted absence" offered by furlough (and the subsidy of it) share the terms and conditions of, but stand apart from, normal "paid employment"; so for example taking leave (or being told to take it) will mean the employer taking over the normal full-pay entitlement of leave, "recalling" the employee from furlough for that period (and possibly affecting entitlement by the disruption of the three week "qualifying period).
  • In reply to Peter:

    Hi Peter, Are you able to offer any guidance on Bank Holidays during furlough - should they be allowed to take them at another time please?
  • In reply to Alex:

    I think they should be dealt with in the same way as leave.They are part of the annual entitlement, whether normally taken as an integrated part of the A/L or as the extra days. Again reflecting the generalisation that has been used, as "a right" of employment. So yes, let them be taken at another time "in lieu".

    It seems the rules for furlough and the other aspects of the temporary changes are being drawn "by default", i.e. if a change isn't specified, then the normal rule applies. Perhaps the easiest way for those drafting the changes, but not making our lives any easier when looking for clarity over what can/can't, must/mustn't, ought/oughtn't to be done in the "real world".

    What I personally feel is that all of us should recognise that we are all, both employers and employees, in this together, so it is not the time for crossing the last t and dotting the last i over entitlements and limitations. Let's count the beans later, if we have to, and allow a bit of give and take where it seems right to do so and the rules and our budgets say we can. So if a day is leave or furlough; whether someone is self-isolating because they have been infected, or because they have small children and are scared of taking the virus home to them after a commute on the tube, let's treat our people as people, with their own priorities, as we have, and not just as cost-centres on our balance sheets.

    Sure: One or two might take advantage, but if they do we can identify and deal with them when this is over. Let's give some slack where we can and it isn't critical.

    Please. :-)