Last thing on Friday saw more updates to the Job Retention Scheme guidance.
Clarity has been given over holiday – it can be taken whilst on furlough BUT you have to pay normal holiday pay. This means that the employer will have to top up the employee’s pay. Holiday pay is normal basic remuneration – but for those who do not have a standard normal wage i.e. they earn commission, carry out regular or contractual overtime, received performance related bonuses; normal pay is caculated based on the avereage weekly wage over the 52 weeks prior to the week during which holiday is taken.
HMRC have also released used guidance on how to calculate what you can claim for a furloughed employee, details of which can be found at https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme and there is also an step by step guide which is essential reading, which can be found at https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers