Home News Carrying forward annual leave

New legislation passed earlier this year enables workers to carry forward up to four weeks’ holiday into the next two leave years, where it has not been reasonably practicable for them to take it due to the effects of coronavirus. The Government has provided guidance on what is ‘reasonably practicable’, and it is unlikely that furloughed workers will need to carry forward holiday, as they will be able to take it during their furlough period.

Where a furloughed worker takes annual leave, the employer must calculate and pay the correct holiday pay in accordance with current legislation. Where this is above the pay the worker receives whilst on furlough, the employer must pay the difference. However, the employer can continue to claim the 80% grant from Government to cover most of the cost of holiday pay.

FIS Associate Member Citation has produced a free guide on managing annual leave for furloughed workers.

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