Annual leave used for furlough

Good morning 

I recently resigned from a company of 4.5 years. On my last payslip I had a holiday pay deduction of around £60. I queried this with my manager as I was expecting my remaining leave to be paid out to me. Advised that the holiday year (1st Jan- 31st Dec) has been pro rata’d. 

Worked it out on government holiday calculator and still owed accrued but not taken leave.  Manager advised if I’ve taken in account of annual leave deduction for furlough which is 15 hrs per month. 

I never agreed for company to deduct 15 hours of my leave each month I was on furlough and I did not choose to be on furlough. (I was on furlough for 14 months). I thought the government paid the furlough scheme and I only ever received 80% of my salary, so it wasn’t topped up or anything like that. 

Any suggestions would be great, as to whether I should pursue this further to try and get my AL paid out, or at least the £60 reclaimed. 

Thanks

Comments

  • JGB1955
    JGB1955 Posts: 3,792 Forumite
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    AIUI, if you 'took' annual leave during furlough it had to be paid at 100% rather than 80%.....  I think I would be asking that the extra 20% be paid.
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  • Bradden
    Bradden Posts: 1,201 Forumite
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    We're you notfied in writing when you were furloughed. I bleieve some employers put in their paperwork that holiday entitlement would be used.
  • @JGB1955 I never took annual leave during furlough - but the company did deduct 15 hrs per month. Not sure why they did it but they weren’t very clear. 

    @Bradden they did mention of possibility AL being used but it didn’t mention anywhere the reason or the eventuality that holiday pay will be owed if leave the company. Nor was this communicated during my notice period etc.  
  • 74jax
    74jax Posts: 7,930 Forumite
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    I would ask them which days or weeks they used your annual leave, and then ask why these days /weeks were not at 100%. If they used your leave, you are owed the extra 20%. 
    Forty and fabulous, well that's what my cards say....
  • I’ll ask the question. But according to other colleagues, they used the leave to cover costs the company incurred for using the furlough scheme such as payroll/admin costs.  
  • 74jax
    74jax Posts: 7,930 Forumite
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    I’ll ask the question. But according to other colleagues, they used the leave to cover costs the company incurred for using the furlough scheme such as payroll/admin costs.  
    In all honesty, it doesn't matter what colleagues say, it's what payroll say. If holiday was used, you get 100%. So payroll can say a definately yes / no it was. If it wasn't paid at 100% you need 20%. You don't use 20% of your salary to fund admin costs, that's bizarre and I bet not what payroll say. 
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  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    AS above you need to get them to show you ....

    When in advance of it being used they notified you holiday would be used up during furlough

    Where the payments were made for any holiday that was deducted from your allowance.

    If they can't you have an illegal deduction going on and non payment of accrued unused holiday in FULL.

    Don't get taken in by, oh we forgot to tell you and/or we forgot to pay you, here is the 20%

    You could present your understanding of what you think you are owed.



  • TBagpuss
    TBagpuss Posts: 11,236 Forumite
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    AS others have said, the company was entitled to require you to take leave during furlough but they were required to pay you your normal salary for that holiday time (unless you agreed a variation of your contract ) 

    So they should either be paying out your accrued holiday, or , if they did tell you in advance that you had to use up holiday, they will need to pay you the extra  20% for those days. 

    My understanding is that the holiday pay should be funded by the employer not claimed back from the government but I may be mistaken about that and they may have been entitled to claim the furlough payment for the holiday as long as they topped up the extra 20%

    They can't use your holiday pay to cover their own administrative costs 
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
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