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Not accruing holiday whilst on furlough

I've been on furlough as a full-time employee since the scheme began, and was asked to sign a letter from the company back in March agreeing to be furloughed. There is a clause written in that states I am not accruing annual leave whilst on furlough, however after reading government advice I couldn't see any guidance on whether companies were allowed to do this. I'm being paid 95% of my full salary whilst on furlough if that makes a difference. The clause is worded like this:
"Your role will still be subject to all the terms of your contract and current employment legislation with the exception of those relating to pay or annual leave, as you will remain employed by ----- even though you will not be working. You will not continue to accrue leave whist you are not working."
Any advice would be great, thank you.
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Comments

  • superbigal
    superbigal Posts: 628 Forumite
    Part of the Furniture 500 Posts
    The additional 15% over Furlough guarantee will more than cover the accrued holiday. I suggest you choose your battles wisely.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    nfer said:
    I've been on furlough as a full-time employee since the scheme began, and was asked to sign a letter from the company back in March agreeing to be furloughed. There is a clause written in that states I am not accruing annual leave whilst on furlough, however after reading government advice I couldn't see any guidance on whether companies were allowed to do this. I'm being paid 95% of my full salary whilst on furlough if that makes a difference. The clause is worded like this:
    "Your role will still be subject to all the terms of your contract and current employment legislation with the exception of those relating to pay or annual leave, as you will remain employed by ----- even though you will not be working. You will not continue to accrue leave whist you are not working."
    Any advice would be great, thank you.
    Yes, reflect on how fortunate you've been getting 95% of your salary whilst being able to sit at home and do nothing for the past 4 months. You agreed to be furloughed and you agreed to the clause regarding holiday entitlement, your company has done nothing wrong.
  • Jeremy535897
    Jeremy535897 Posts: 10,758 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    I don't think they can stop your holiday accruing while you are on furlough. That would be in breach of the rules on statutory minimum holiday of 5.6 weeks a year. They can make you take your holiday while on furlough, although they would have to give the required notice (normally twice the length of holiday) and pay it at 100%.

    As has been said above, given that they have continued to pay you 95% of your salary while on furlough, when they could have paid you only 80%, this may be a battle not worth fighting.
  • tripled
    tripled Posts: 2,884 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 4 August 2020 at 2:00PM
    The commonly used rule of thumb for holiday is 12.07%, so the 15% top-up covers your holiday pay.
  • jimbo26
    jimbo26 Posts: 954 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Can hardly believe I've read this. Your employer is topping up your salary to 95%, and not having to do a jot of work for months, and you're moaning about some leave!!
  • jimpwarsop
    jimpwarsop Posts: 249 Forumite
    100 Posts Second Anniversary
    I would suggest if you kick up a fuss, or even mention this to your employer, accruing leave might be the least of your problems.
  • adamp87
    adamp87 Posts: 902 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    Against everyone else..

    Your rights don’t just disappear because of coronavirus, yes you’ve been furloughed, but it’s not excuse nor does it mean if you approach with a concern your going to be put on the chopping block. It’s madness how many people are just happy to give up employment rights that have been hard fought for over the past 50 years.

    However you signed & agreed to this change and from what I understand it’s not illegal in any form. Unfortunately you’ll have to grin and bear it & take solace in the fact you received 95 % salary over the period. 


  • Jeremy535897
    Jeremy535897 Posts: 10,758 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    adamp87 said:
    Against everyone else..

    Your rights don’t just disappear because of coronavirus, yes you’ve been furloughed, but it’s not excuse nor does it mean if you approach with a concern your going to be put on the chopping block. It’s madness how many people are just happy to give up employment rights that have been hard fought for over the past 50 years.

    However you signed & agreed to this change and from what I understand it’s not illegal in any form. Unfortunately you’ll have to grin and bear it & take solace in the fact you received 95 % salary over the period. 


    My earlier post makes the point that it is not possible to stop holiday accruing. Nothing an employee signs can remove the entitlement to the statutory minimum, although if the contract of employment is more generous, that can be removed (by agreement). The question is whether it is worth fighting over what is effectively 5%, given that the employer can oblige the taking of holiday during furlough (with appropriate notice).
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    adamp87 said:
    Against everyone else..

    Your rights don’t just disappear because of coronavirus, yes you’ve been furloughed, but it’s not excuse nor does it mean if you approach with a concern your going to be put on the chopping block. It’s madness how many people are just happy to give up employment rights that have been hard fought for over the past 50 years.

    However you signed & agreed to this change and from what I understand it’s not illegal in any form. Unfortunately you’ll have to grin and bear it & take solace in the fact you received 95 % salary over the period. 


    Would appear as if the employer was trying to help their employees. Only a temporary change in a difficult period. 
  • Jonesy1977
    Jonesy1977 Posts: 295 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    nfer said:
    I've been on furlough as a full-time employee since the scheme began, and was asked to sign a letter from the company back in March agreeing to be furloughed. There is a clause written in that states I am not accruing annual leave whilst on furlough, however after reading government advice I couldn't see any guidance on whether companies were allowed to do this. I'm being paid 95% of my full salary whilst on furlough if that makes a difference. The clause is worded like this:
    "Your role will still be subject to all the terms of your contract and current employment legislation with the exception of those relating to pay or annual leave, as you will remain employed by ----- even though you will not be working. You will not continue to accrue leave whist you are not working."
    Any advice would be great, thank you.
    Your company could very easily have given you notice to take your holiday whilst on Furlough, they have every right to do this (paid at 100% for holiday days) as long as the right notice is given.  It seems that rather than do this they have paid you 95% for the duration of your furlough.  It is worth remembering that furlough is simply another word for lay off (short term) no company would do this unless they needed to, it would not make sense financially.  You have been laid off for a short period of time at 95% of your wage and you have kept your job........Do you really want to ask for holiday in addition?  
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