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Bank Holiday Pay During Furlough Period & Reduced Salary

Hi all,

My company has furloughed some staff and those who remain at work are also on reduced salary until further notice.

Would appreciate your help in clarifying my understanding of the Bank Holiday pay from the government website please - I've pasted the relevant quote from the below link:
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme#include

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

During this unprecedented time, we are keeping the policy on holiday pay during furlough under review."

My queries are:

1) Before all this, nobody worked during the bank holiday so am I correct to interpret that our company should have topped up our bank holiday pay for Easter to 100% of salary for those people on furlough? Or given us 2 days back in lieu?

2) Also, should the staff who remained to work on reduced salary also have had their bank holidays paid at the normal base salary rather than the reduced one?

We've been encouraged to take annual leave during furlough period and have been told that they will top up the remainder if we do use leave however, the bank holiday pay has not been mentioned. We're also unsure if the annual leave for those working on reduced salary should receive 100% of normal pay for their holiday.

Thanks for reading and hope you're having a good day.

Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,813 Forumite
    10,000 Posts Sixth Anniversary Photogenic Name Dropper
    Yes to both. The working time directive says that a fixed rate employee is paid at their usual rate  (most furlough reductions are temporary ), and variable pay employees are normally paid based on the average pay for the previous year.
  • redzhell
    redzhell Posts: 351 Forumite
    Part of the Furniture 100 Posts
    Thanks Jeremy - that's a very welcome news.

  • Hi All
    I worked for a Agency and had been working through them for the same company for 11 mths and assumed under the government guidelines I would be furloughed but the Agency I worked for created a new clause, saying that they could only furlough me, if the company I had been working for contributed towards this, saying it was for my holiday pay, the company obviously refused, so I was made redundant again on 9.4.20, surely this is illegal what they have done, I can’t understand why such a big global company like this would do this, apart from Greed, still trying to make money out of companies to cover their administrative costs.  I have checked with other Agencies and they have furloughed their staff.  Can anyone advise on what else I can do please, as I can’t afford, like everyone, be out of work again.  Thank you.  Muriel

  • gary83
    gary83 Posts: 906 Forumite
    Part of the Furniture 500 Posts Name Dropper
    A company/agency does not have to furlough anyone, furlough is entirely optional to the employer, it is not illegal to not furlough someone. some agencies have furloughed staff, many haven’t, have a search on here and their are many people in the same boat as you as agencies are choosing not to pay the costs of furlough.

    unfortunately other than look for other work & check what benefits that you are entitled to there is nothing else you can do.
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