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Laid off and refused holiday pay due to Furlough

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Hi
I'm looking for some advice. I had been working at a restaurant from July until this present lockdown. The employer has taken this opportunity to let go of 4 staff, myself included. They have, kindly, put us on the furlough scheme up until December, however, this means that we apparently forgo any holiday pay we've accrued. Is this allowed? In his words he said "I can either pay you your holiday pay which would cover a week or I can put you on furlough, covering you for 4 weeks". So they took the decision to furlough us but it doesn't seem right to me that means I don't get the holiday pay I'm owed. Please advise, thanks. 

Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,733 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    What is said above isn't right, but as you have only worked there a short time, your employment rights are limited. Your employer can dismiss you at the cost of accrued holiday pay, with one week's notice (and could ask you to use up your holiday in that notice period, although they would usually have to give you 2 weeks notice of that). 4 weeks of furlough (presumably at 80%) sounds better than one week's notice at 100%, and possibly one week's holiday at 100%. You could always consider asking for holiday pay if you are dismissed after your furlough has ended, as you cannot be obliged to trade furlough for holiday pay.

  • Barny1979
    Barny1979 Posts: 7,921 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    How much leave would you have accrued? 15working days in November left assuming Mon--Fri work, so 5 days holiday pay or 15 days Furlough?
  • MattMattMattUK
    MattMattMattUK Posts: 11,167 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    edited 12 November 2020 at 7:21PM
    It might depend exactly how they are doing it, they could put you on holiday on furlough and top up to 100% for that time, they could just pay you 80% and ignore the obligation to pay you holiday pay. They could however tell you that they are not willing to furlough you, pay you a few days holiday pay and send you on your way. 

    Your choice, regardless of the rights or wrong of it is probably:
    A ) one weeks holiday pay
    B ) four weeks furlough pay
    Which of those two options leave you better off?
  • Thank you for your insight guys. Yeah I totally agree that 4 weeks furlough is better than 1 week's holiday yet I didn't think that I would have to trade one for the other. I think I will take your advice on this though, thank you!  Jeremy535897 said:
    What is said above isn't right, but as you have only worked there a short time, your employment rights are limited. Your employer can dismiss you at the cost of accrued holiday pay, with one week's notice (and could ask you to use up your holiday in that notice period, although they would usually have to give you 2 weeks notice of that). 4 weeks of furlough (presumably at 80%) sounds better than one week's notice at 100%, and possibly one week's holiday at 100%. You could always consider asking for holiday pay if you are dismissed after your furlough has ended, as you cannot be obliged to trade furlough for holiday pay.


  • The alternative is they let you go now and pay you the holiday (you can be let go within the first 2 years without a reason) - it's not quite right, but I'd take the furlough.
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