May Bank Holidays and Furloughed Workers
Posted on 29th April 2020
by
Streets
The early May Bank Holiday, instead of being on Monday 4th May, will be on Friday 8th May to coincide with Victory in Europe Day, or VE Day, which marks the 75th anniversary of the formal end of World War II.
If an employee is on holiday or has a scheduled Bank Holiday while on furlough, they are entitled to still receive this holiday. Employers must ensure that any employee on holiday or a Bank Holiday is paid their full salary for that period of holiday.
Therefore, employers must schedule to pay employees’ full wages on the following dates although this does not impact their furlough status:
- 8th May 2020
- 25th May 2020
When looking to make payroll payments for Bank Holidays for those staff furloughed, the following approach should be taken:
- 80% up to a maximum of £2,500 of the employees pay to be paid through the Coronavirus Job Retention Scheme along with NIC and Pension payments
- 20% or the balancing figure, if normal pay is over £2,500, of the employees pay is to be paid by the employer along with NIC and Pension payments
Where a furloughed employee is not entitled to bank holidays off under their contract, a bank holiday will have no effect on their pay during the furlough, or on their annual leave entitlement.
Previous versions of guidance published by HM Revenue and Customs (HMRC) on the Coronavirus Job Retention Scheme did not mention how employers should deal with annual leave for furloughed employees. This is now addressed in HMRC guidance on calculating wage costs for claims under the scheme, which was published on 17 April 2020 and updated on 27 April 2020.
https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme
No Advice
The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.
Information
The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.
Expert insight and news straight
to your inbox
Related Articles
New Companies House powers
The recently introduced Economic Crime and Transparency Act has gifted Companies House a range of new powers aimed at reducing exploitation by corporate entities to pursue illegal enterprise.
The aim of the new reforms are:
Introducing identity
Cyber protection laws introduced
New consumer protections against hacking and cyber-attacks came into force at the end of April 2024. All internet connected smart devices will be required by law to meet minimum-security standards.
Manufacturers will be legally required to protect
Tax Diary June/July 2024
1 June 2024 - Due date for corporation tax due for the year ended 31 August 2023.
19 June 2024 - PAYE and NIC deductions due for month ended 5 June 2024. (If you pay your tax electronically the due date is 22 June 2024).
19 June 2024 - Filing
Share this article