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The Independent Automotive Aftermarket Federation

Furlough is not just for Christmas: advice from Lawgistics

Date: Thursday 10 December 2020

Lawgistics have advised that the government has again updated their guidance with regard to furloughing employees.

Furlough is only in place for companies which are being affected by coronavirus (Covid-19).

The government has stated:

You should not place employees on furlough just because:

  • they are going to be on paid leave
  • you usually do less business over the festive period 

Many businesses such as those in the automotive sector experience dips over the festive/winter period but this does not warrant employers putting employees on furlough.

Due to it being the festive season, employees may wish to use some of their annual leave. Remember, if the employee is on furlough, they can still use their annual leave. If the employee is on flexible furlough, then the hours taken for the annual leave during the claim period will be counted as furloughed hours rather than working hours, and these hours must be paid at the normal rate. So, you will need to ensure the employee receives 100% of their pay for any days taken as annual leave (essentially, you are topping this up from the 80%).