Furlough Holiday Accrual

[james_law]

I was furloughed in march and have received 3 months furlough pay from my company (I am still furloughed). I work as an occasional worker (under my contract I am not an employee). That being said my company deemed I was eligible to claim and they would pay me 80% of my wage whilst on furlough.

As I understand, as a furloughed employee, by law, we are still employed and therefore still accrue holidays. After querying this with my employee, they have said occasional workers do not accrue holiday and that is why I have not been paid any.

This what my employer said as to why I don't receive holiday on furlough;
''Occasional employees are not accruing holidays whilst on furlough so no payment is being made. This is because holiday pay is based on hours worked and at present no work is being undertaken''


Thanks in advance for any help.

[ULA]

From what I understand and having done some research, zero-hour employees accrued holiday during furlough should be calculated in the same way as before furlough. Holiday pay during furlough is based on their average pay over the previous 52 weeks worked - the reference period increased to 52 weeks from 6 April 2020.
Employers count back across the last 52 weeks that the employee has worked and received any pay for work in that week. Weeks in which no pay was received do not count towards the 52-week average. If employees have worked for less than 52 weeks, employers should use as many full weeks of work as possible to calculate the holiday pay.

Because the reference period must include the last 52 weeks for which there were actual earnings, any weeks where no work was performed are not included. So, the reference period may go further back than 52 weeks from the furlough period. Employers should not look back any more than 104 weeks. If the employee has less than 52 weeks in which they earned anything during the last 104 weeks, then the reference period is shortened to that lower number of weeks.

Hope that makes sense, although please do not come back and ask me to work out any calculations as it all seems a bit complicated.

[james_law]

Hi, Sorry if I've not been clear, how holidays accrue under furlough is not the issue. The issue is that my employer is saying I do not accrue any, this is what he said;

''Occasional employees are not accruing holidays whilst on furlough so no payment is being made. This is because holiday pay is based on hours worked and at present no work is being undertaken.''

Under my original contract, I am not an employee, there is no mutuality of obligation and i technically just do work on an assignment basis. So what i am really asking is can my employer refuse to pay me holiday for the furlough period? Or is a case of, regardless of my original contract I am entitled to accrue holiday while on furlough.

Thanks for your response!

[ULA]

This link may be a useful reference point for you

https://www.gov.uk/government/public...es-of-contract

[james_law]

Thanks Ula, I'll have a read however at first glance I dont think it's going to provide any answers to my situation

[ULA]

For someone on a zero hours contract to accrue holiday entitlement it is based on the hours that are worked and then calculating the pro-rata due of statutory entitlement.

How is your furlough being calculated? That might given you a perspective on how you can accrue holiday entitlement during furlough.

[james_law]

For someone on a zero hours contract to accrue holiday entitlement it is based on the hours that are worked and then calculating the pro-rata due of statutory entitlement.

How is your furlough being calculated? That might given you a perspective on how you can accrue holiday entitlement during furlough.

My furlough is calculated taking the average monthly wage from 12 months (April 2019 - April 2020) and i am paid 80% of that each month. After asking why i was not accruing holidays as i believed that to be case, he said because i was not actually doing any work then I would not accrue any holidays.

I am classed as an occasional worker and my contract states i am not an employee and work on an assignment basis only. Do all workers who are furloughed continue to accrue holiday, also i have not agreed for them to not give me holidays either.