Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether employers are entitled to claim 80 per cent of an employee's holiday pay when calculating their wage under the Coronavirus Job Retention Scheme; and if he will update the guidance on the scheme to provide clarification in this area.
Employers can continue to claim the 80% grant from the Government to cover most of the cost of holiday pay, although employers are required to pay additional amounts over the grant so that employees receive their full holiday pay, in accordance with the Working Time Regulations. Employers have the flexibility to restrict when leave can be taken if there is a business need.
BEIS have published detailed guidance on holiday entitlement during furlough, which is available on GOV.UK.