UPDATE: Furlough and Holiday Pay

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Whilst furloughed employees will continue to accrue leave as per their employment contract. Employees can agree with their employer to vary holiday pay entitlement as part of the furlough agreement, however almost all workers are entitled to 5.6 weeks of statutory paid annual leave each year which they cannot go below.

Employees can take holiday whilst on furlough. Working Time Regulations (WTR) require holiday pay to be paid at their normal rate of pay or, where the rate of pay varies, calculated on the basis of the average pay they received in the previous 52 working weeks. Therefore, if an employee does take holiday while on furlough, the employer should pay the usual holiday pay in accordance with the WTR. Employers are obliged to pay the additional amounts over the grant, though they have the flexibility to restrict when leave can be taken if there is a business need. This applies for both the furlough period and the recovery period.

If an employee usually works bank holidays, then the employer can agree that this is included in the grant payment. If an employee usually takes the bank holiday as leave, then the employer can either top up pay to the usual holiday pay level, or give a day of holiday in lieu.

The government has advised that it is keeping the policy on holiday pay during furlough under review during this unprecedented time.


Coronavirus Job Retention Scheme

HMRC has created a step-by-step guide on how to make a claim through the scheme, covering:  

  • essential information
  • before you make your claim
  • calculating your claim
  • processing your claim
  • after submitting your claim.
COVID-19 Appeal

We know it is difficult for everyone right now but if you can spare any funds, the Fashion & Textile Children’s Trust is looking to raise £60,000 to support families in our industry. 

Children in families across our industry are already going without the things they need to feel safe, comfortable and supported. For many parents it was a struggle to make ends meet before the coronavirus outbreak.

In the last three weeks applications for FTCT grants have tripled, with requests for items like clothing, bedding and shoes.

For children with additional needs, parents are requesting sensory items and specialist equipment to care for them 24/7 while their normal support services are closed.

“Many of the parents we are speaking to simply aren’t eligible for the government schemes available. For families used to living month to month, they can’t afford the shortfall left by furlough pay or the wait for Universal Credit. Our grants can act as a safety net during this unpredictable time.”
Anna Pangbourne, FTCT Director.

For over 150 years, FTCT has been giving financial support to families in the UK fashion and textile industry. From retail, to manufacture, design to distribution, laundry services to textile processing and more, hundreds of parents across the industry rely on our grants, to provide essential items for their children.

FTCT is not eligible for the government support package announced earlier this month. Despite the vital service the charity gives to so many, the government package is only available to charities offering key services and front line community support. 


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