How should employers deal with bank holidays that fall within a period of furlough leave?

Note: The Coronavirus Job Retention Scheme closed on 31 October 2020 and has been replaced by the Job Support Scheme from 1 November 2020. The last date on which employers can submit or amend claims for employees furloughed under the Coronavirus Job Retention Scheme is 30 November 2020.

Where bank holidays are included in an employee's holiday entitlement under their contract, employers should either pay the employee in full for a bank holiday that falls during the period of furlough, or allow them to take a day's annual leave at a later date.

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.

The Government has published guidance on Holiday entitlement and pay during coronavirus (COVID-19), which confirms this approach to bank holidays falling during furlough.